Competitive advantage increases revenue by 30% over the competition or decreases cost by 30%.
Virality is different from Network Effects. Virality has users inviting other users to join. Network Effects has the platform increasing in value based on more users participating.
I once had a CEO tell me “I wish I had designed for virality rather than revenue.” If you have virality built into your product, revenue will follow.
Here are five sources of competitive advantage:
- Recurring revenue
- Channel access
- Platform-based solution instead of singular products
- Network effects in action (the value of the product increases with the number of users)
- Virality (not the same as network effects; users invite other users)
Hall T. Martin is the founder of TEN Capital and a builder of entrepreneur ecosystems by startup funding through angel networks, funding portals, syndicates, and more. Connect with him about fundraising, business growth, and emerging technologies