- When I think about blitzscaling, I start by thinking about the four key growth factors. The first growth factor is a big market. If you want to change the world, you need a big market, and this isn't just the present market. It's also the future market. Where is the world going to be in one, five or even 10 years? The second key growth factor is distribution. You may have a great product, but if you can't get it into people's hands, you can't change the world. Here in Silicon Valley, a lot of people are obsessed with building insanely great products. That's necessary but not sufficient.
A good product with great distribution will beat a great product with only good distribution. The third key growth factor is gross margins. Gross margins are going to fuel your growth because you'll have the cash to actually invest in that growth. And finally, the fourth key growth factor are network effects. Network affects exist where each new node in a network, each new customer or user, makes the network that much more valuable for every prior member of the network. A great example of this is Airbnb. Each new host that comes onto the platform makes Airbnb more valuable for all the guests that are already on Airbnb.
Each new guest that comes on to Airbnb makes it more valuable for every single host that's already on Airbnb. These network effects reinforce that enduring market leadership.