US$1 Billion or Rs. 5,000 crore? That’s right.
Instagram – the most popular photo-sharing app and a 554-days old company with only 13 employees with almost no revenue did manage to grab this huge deal from Facebook.
Though many critics are raising doubts over Facebook strategy behind paying such a huge amount but Instagram has become a very popular brand itself in the last 2 years that Facebook had to buy it to avoid any competition in the future.
Let’s take a look at five things which you can learn from Instagram Success:
1) First Mover Advantage is Always There: Instagram was not the first photo sharing app in the market but it was the first app to bring such awesome filters to give your photos an artistic look which is their main strength. Almost six years ago, YouTube did the same thing when it started a simple and easy to use video sharing platform and later it was also acquired by Google for $1.65 Billion. Even YouTube did not have any monetization model at that point of time.
But as they say, “The early bird gets the worm”.
Many apps were created like Instagram afterwards but they couldn’t replicate the success of it.
2) Focus on one thing: The best thing I liked about Instagram is that they did not launch Android app until now and they haven’t launch any website to use those filters till now. And It actually worked in their favor. Apple iPhone users started feeling superior that this app is made for them only. So, instead of using other similar apps like Instagram, iPhone users were only using Instagram which they believed was developed only for them.
3) Marketing: The app was not just limited to using filters and sharing on their social networks. Users of Instagram, known as Instagrammers started to have their own personal meet every month in various cities of the world. This actually build engaging communities and loyal user base on the network.
4) You don’t need Cool office or hundreds of employees to build a successful company: Instagram boasts of only 13 employees in the company operating from a very simple office on 164 South Park Street in the SOMA neighborhood of San Francisco.
They were more focusing on how to increase its user base rather than buying new office spaces or hiring employees.
I’m sure, there will come a day when a 1-2 person company will be acquired for a billion dollars.
5) Build great product, Money Will Follow: Many companies focus on earning money rather than improving the product even at the early stages of the product. No doubt, money is important. But if you’re are convinced that your product is great and users are loving it – money will definitely follow.