Cool tools
Wednesday, May 26th, 2010Is it a good strategy to base your web business idea on a cool tool? Well, if you’re the talented Loren Brichter, the answer is probably YEAH. He created and distributed the premier Twitter client for the iPhone, an application that cost me €2.39 on iTunes. His 1-man shop made a good income from sales and then was acquired by Twitter and he was hired on, in a presumably pretty sweet deal.
Yet the percentage of developers who are able to make a living from the sales of client applications is rather small and once a few big applications gain traction, it’s going to be very difficult to compete. And let’s not forget that in most segments there are a plethora of good enough clients being distributed for free.
It makes a lot more sense to think of your cool tool as facilitator, one that does not call attention to itself, but that enables, simplifies or reveals an experience in a way that is better than what currently exists. The business opportunity will be found in the value that you can create in the experience, not necessarily in the tool itself.
As an example, this is what Foursquare, Facebook and the other slew of mobile location-centric applications are all about. The holy grail here is to help connect local businesses with existing customers and for them to be introduced to potential new customers. Putting it together correctly, businesses will be happy to pay for more, and more frequent, customers while users of your cool tool enjoy the benefits of social discovery, special deals and the nearly magical power to know the best nearby places even if you’ve never been there before.





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