Yipit’s lofty expectations and subsequent disappointment weren’t just a coincidence; they were the result of the powerful and potentially detrimental psychological effect of valuing media feedback and artificial “buzz” over the only kind of feedback that actually matters: The kind that comes from users. If a startup isn’t aware of it, the spotlight effect can occur repeatedly over time… Time and again, artificial buzz will belie the cricket-sounds coming from the user-base…
…As Venture Capitalist Brad Feld wrote in his book Burning Entrepreneur: “The great entrepreneurs just keep building their companies. They focus relentlessly on their products, their customers, and their people. […] They just keep at it and the very best ones shut out and ignore all the noise.”
(1) This subject has been a recurring topic of conversation at Seeking Alpha board meetings.
(2) Seeking Alpha has about 750,000 daily users on market days and massive brand recognition from the buy-side, but we get almost no media coverage. Is that a problem?