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Don't Forget The Red States

We tend as a technology community to be obsessed with the bleeding edge of innovation.  Many of the greatest companies of our time have been built on it (Google, Apple, Microsoft) and many of the rising stars are being built on it (Facebook, Twitter).

Don’t get me wrong, I’m all for the bleeding edge.  Heck, I live on it.  But let’s not forget the “boring” businesses, the ones solving a preexisting need or problem that start by addressing a larger audience of folks, many of whom aren’t as tech savvy and often don’t live on the coasts.

Some examples:

— Coupon and other loyalty businesses.  We recently invested in Linkwell, pursuing a unique coupon model in the health-care space.

— New approaches to long-standing vertical businesses, eg. Oyster.com in travel or Tracked.com in finance.

— Retail businesses such as Diapers.com.

— Mobile businesses and apps for phones other than the iPhone.

There is a somewhat obvious, but important lesson in this even when conceiving and building products initially for the tech savviest consumers: the extent of their success is ultimately a function of how widely useful they are.  This affects product decisions, messaging and everything in between.

This does not mean that products should be non-innovative, nor does it mean they should take on too much.  It just means that they need to be broadly relevant and accessible in addition to focused, clear and simple.

Facebook and Twitter actually represent great examples.  While they both started catering to very specific audiences, Facebook to students and Twitter to geeks, their core propositions were much more widely relevant.  Facebook tapped into the fundamental dynamics of human relationships, and Twitter tapped into the simplicity of communication and a flexibility that allows anyone to use the platform how they see fit.

While it may be unbelievable to you, even scare the shit out of you, Rush Limbaugh has got more listeners than any other radio voice in the country.  And building businesses that appeal to them is usually a good recipe to make money.