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Perspectives October 14, 2015

Investing in “drugs”

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People often describe consumer products as either painkillers (“need to have”) or vitamins (“nice to have”).

Painkillers are products that address existing needs/pain points. Companies selling painkillers harvest demand; the prospects are already searching for someone to fix their problem and take their money. A lot of businesses that got built on PPC were painkillers. For example, Diapers.com was a painkiller for parents who urgently needed diapers, but didn’t have time to get them. People turned to Google for a painkiller, and Diapers.com addressed that pain with brilliant overnight delivery. Another great painkiller is Uber. Getting around San Francisco was a giant pain in the butt until Uber came around. The second I heard about it, I (and countless others) downloaded it.

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