The Growth Paradox

Today, I read an article about how Keygen removed their "book a call" button from their sales page (source), and it made me reflect on how companies operate in this day and age. I’ve been a software engineer focusing on frontend development for nearly seven years. Over that time, I’ve worked at tiny 20-person startups and sprawling global enterprises with over 5,000 employees. My experience spans building and improving internal tools to completely overhauling websites during company rebrands. All of this has given me a front-row seat to the workings of many organizations—and to the frustrations that come with them. If I had to pinpoint one common struggle, it’s this: companies don’t know when to stop chasing growth. At startups, the mindset is singular: growth at all costs. They need to deliver an MVP quickly, secure clients, and start generating revenue. It’s a clear and simple equation: no product means no customers, and no customers mean no money. This pressure leads to a "move fast now, fix it later" mentality. But here’s the problem: when startups grow, they often fail to shed that mindset. Instead of focusing on refining their product, they double down on rapid expansion. New features get piled on in the race to acquire more customers, and in the process, the product often strays far from its original purpose. Meanwhile, the "fix it later" promises come back to haunt them as tech debt balloons, requiring countless hours to patch and maintain systems that were never built to scale. All the while, these companies pour resources into flashy initiatives—like adding AI to a washing machine—that don’t necessarily solve customer pain points. Let’s take Netflix as an example. Founded in 1997 as a DVD e-commerce platform, Netflix pivoted in 2007 to streaming services. By recognizing market shifts and reinventing itself, Netflix revolutionized how we consume entertainment and effectively killed the DVD industry. They then doubled down, investing billions in original productions and solidifying their dominance. But growth isn’t infinite. Over time, competition emerged. Studios started pulling their content to launch rival platforms, making it harder for Netflix to secure popular licenses. Faced with this challenge, Netflix made a curious decision: in 2021, they hired an EA executive and announced plans to enter the gaming industry. By 2022, they had opened a game studio. Wait, what? Netflix became synonymous with killing the DVD industry and pioneering on-demand streaming. Now, they’re making mobile games? Who subscribes to Netflix thinking, “I’m here for the movies and the games,” especially when competitors like Disney+ focus on their core strength—entertainment? This feels like a textbook case of a company losing its focus in the name of endless growth. Instead of doubling down on what made them successful—producing original, must-watch content—they diverted resources into an entirely new market. If subscribers are leaving because The Office is no longer available, the solution isn’t to make games, it’s to create something better that keeps people hooked. Keygen’s decision to remove the "book a call" button highlights an important principle: reducing friction for users can be more valuable than adding complexity. Instead of piling on features or processes, they streamlined their sales process—and that simplicity resonates. It’s a sharp contrast to companies like Netflix, which overextend themselves chasing new audiences. It’s easy to see why companies fixate on growth: investors demand returns, competition is fierce, and stagnation can feel like a death sentence. But growth without focus can be just as damaging, leading to bloated products and disillusioned users. Here’s the truth: after a certain point, companies need to stop adding and start improving. Build systems that attract users, then refine them until those users stop leaving. People don’t want a product that tries to do everything poorly or is so bloated it’s impossible to use. If your users need to schedule a call just to understand your product, you’ve already missed the mark. The solution should be: grow until you’ve captured your audience, then shift gears. Focus on making your product indispensable. Sometimes, saying no to new features or markets is the most strategic decision a company can make. True success isn’t about doing everything—it’s about doing the right things, well. The paradox of growth is this: past a certain point, more features can lead to fewer users. Growth for the sake of growth often leads to losing sight of what made the product great in the first place.

Jan 21, 2025 - 18:07
 0
The Growth Paradox

Today, I read an article about how Keygen removed their "book a call" button from their sales page (source), and it made me reflect on how companies operate in this day and age.

I’ve been a software engineer focusing on frontend development for nearly seven years. Over that time, I’ve worked at tiny 20-person startups and sprawling global enterprises with over 5,000 employees. My experience spans building and improving internal tools to completely overhauling websites during company rebrands. All of this has given me a front-row seat to the workings of many organizations—and to the frustrations that come with them. If I had to pinpoint one common struggle, it’s this: companies don’t know when to stop chasing growth.

At startups, the mindset is singular: growth at all costs. They need to deliver an MVP quickly, secure clients, and start generating revenue. It’s a clear and simple equation: no product means no customers, and no customers mean no money. This pressure leads to a "move fast now, fix it later" mentality.

But here’s the problem: when startups grow, they often fail to shed that mindset. Instead of focusing on refining their product, they double down on rapid expansion. New features get piled on in the race to acquire more customers, and in the process, the product often strays far from its original purpose. Meanwhile, the "fix it later" promises come back to haunt them as tech debt balloons, requiring countless hours to patch and maintain systems that were never built to scale.

All the while, these companies pour resources into flashy initiatives—like adding AI to a washing machine—that don’t necessarily solve customer pain points.

Let’s take Netflix as an example.

Founded in 1997 as a DVD e-commerce platform, Netflix pivoted in 2007 to streaming services. By recognizing market shifts and reinventing itself, Netflix revolutionized how we consume entertainment and effectively killed the DVD industry. They then doubled down, investing billions in original productions and solidifying their dominance.

But growth isn’t infinite. Over time, competition emerged. Studios started pulling their content to launch rival platforms, making it harder for Netflix to secure popular licenses. Faced with this challenge, Netflix made a curious decision: in 2021, they hired an EA executive and announced plans to enter the gaming industry. By 2022, they had opened a game studio.

Wait, what?

Netflix became synonymous with killing the DVD industry and pioneering on-demand streaming. Now, they’re making mobile games?

Who subscribes to Netflix thinking, “I’m here for the movies and the games,” especially when competitors like Disney+ focus on their core strength—entertainment?

This feels like a textbook case of a company losing its focus in the name of endless growth. Instead of doubling down on what made them successful—producing original, must-watch content—they diverted resources into an entirely new market. If subscribers are leaving because The Office is no longer available, the solution isn’t to make games, it’s to create something better that keeps people hooked.

Keygen’s decision to remove the "book a call" button highlights an important principle: reducing friction for users can be more valuable than adding complexity. Instead of piling on features or processes, they streamlined their sales process—and that simplicity resonates. It’s a sharp contrast to companies like Netflix, which overextend themselves chasing new audiences.

It’s easy to see why companies fixate on growth: investors demand returns, competition is fierce, and stagnation can feel like a death sentence. But growth without focus can be just as damaging, leading to bloated products and disillusioned users.

Here’s the truth: after a certain point, companies need to stop adding and start improving.

Build systems that attract users, then refine them until those users stop leaving. People don’t want a product that tries to do everything poorly or is so bloated it’s impossible to use. If your users need to schedule a call just to understand your product, you’ve already missed the mark.

The solution should be: grow until you’ve captured your audience, then shift gears. Focus on making your product indispensable. Sometimes, saying no to new features or markets is the most strategic decision a company can make. True success isn’t about doing everything—it’s about doing the right things, well.

The paradox of growth is this: past a certain point, more features can lead to fewer users. Growth for the sake of growth often leads to losing sight of what made the product great in the first place.

What's Your Reaction?

like

dislike

love

funny

angry

sad

wow