- Startups - David Sacks Founder of Yammer - TWiST#354

Startup Challenges

David Sacks shares the challenges he faced while launching Yammer, highlighting the importance of resilience and adaptability in entrepreneurship. Despite initial skepticism from judges, Yammer gained 50,000 users and 10,000 company networks in just one week, proving its potential 1. Sacks recalls the mixed reactions from the judging panel, with only Mark Benioff showing enthusiasm, which later turned into competition when Benioff launched Chatter 2.

You don't really worry about the naysayers. You worry about, are there people who see what you're trying to do and appreciate it?

--- David Sacks

This experience underscores the need to focus on those who understand and support your vision, rather than being deterred by critics.

   

Scaling with Speed

Scaling quickly in response to market demand is crucial, as demonstrated by Yammer's rapid growth strategy. Sacks emphasizes the importance of having a strong product hook and a viable distribution model to ensure users recruit other users, creating a viral effect 3. He believes that once a product gains traction, it's essential to "pour as much gasoline on that fire as fast as you can" to outpace competitors 4.

When something actually sticks and it's rare that it happens, you've got to like move as quickly as possible.

--- David Sacks

This approach helped Yammer secure a competitive edge and achieve significant market penetration.

   

Pivoting & Resilience

The journey of Yammer illustrates the power of pivoting and resilience in the face of challenges. Initially, Sacks launched Genie, a family social network, but pivoted to Yammer after recognizing the potential for corporate social networking 1. This strategic shift was driven by feedback and market demand, showcasing the importance of adaptability in business.

This family social networking is pretty interesting, but would corporate social networking be an even better idea?

--- David Sacks

Sacks' experience highlights the value of being open to change and leveraging new opportunities to drive success.