Introduction to the Episode
- Harry Stebings introduces the podcast 20 VC and himself.
- Stebings expresses excitement about having Eugene Wei, who he considers a top writer, thinker, and strategist, as a guest.
- Eugene Wei's professional background includes working at Amazon, Hulu, cofounding Early, joining Flipboard, and working at Oculus.
- Eugene's blog is recommended, with links available on twentyminutevc.com.
This is 20 VC with me, Harry Stebings, and I'm so excited for our episode today. Our guest is one of my favorite writers, thinkers and strategists in our ecosystem.
This quote introduces the podcast and the guest, highlighting Stebings' enthusiasm for the guest's expertise and contributions to the field.
Eugene Wei's Professional Background
- Eugene Wei began his career with a seven-year stint at Amazon focused on product development.
- He later joined Hulu, leading product design, editorial, and marketing teams.
- Wei cofounded a company called Early, which was acquired by Airtime.
- He served as head of product at Flipboard and head of video at Oculus.
- Eugene is also known for his writing on his blog.
Eugene spent the majority of his professional career at consumer Internet companies, having started his career with a seven year stint at Amazon with a focus on product.
This quote summarizes Eugene Wei's career trajectory, emphasizing his extensive experience in consumer internet companies and product development.
- Remote offers services for employing global teams, taking care of international payroll, benefits, taxes, and compliance.
- Alt provides a platform for investing in alternative assets like sports cards with transparency and liquidity.
- Angellist's fund admin platform is praised for its back-office solutions for fund managers.
Do you employ or pay workers in other countries? Yes. Well, you need remote. Remote makes it easy for companies of all sizes to employ global teams.
This quote explains the services provided by Remote, emphasizing the ease of employing international teams through their platform.
Eugene Wei's Entry into Tech
- Eugene Wei initially planned to attend law school but deferred to explore other options after breaking his leg.
- His interest in the internet led him to apply to tech companies, despite lacking specific qualifications.
- Wei's passion for the web and an impassioned cover letter helped him secure a position at Amazon.
I realized the Internet really is something that probably will change the world in a huge way. And I just need to be in that space.
This quote reflects Eugene Wei's realization of the internet's potential and his decision to pursue a career in technology instead of law school.
- Eugene Wei believes the process and medium of decision-making can influence the outcome.
- He discusses various mediums like writing, Socratic debate, prototypes, charts, graphs, design mockups, film, audio, and simulations.
- The medium should be chosen based on the type of decision, not just personal preference.
- Wei uses examples from Amazon, Apple, and the Challenger shuttle disaster to illustrate the importance of selecting the appropriate medium for decision-making.
The process or medium you choose to make a decision actually can affect what decision you make.
This quote highlights the significance of the decision-making process and medium, suggesting that they can impact the final decision.
- Wei challenges the notion that content and form of information are independent.
- He shares insights from his time at Amazon, learning from Jeff Bezos about the importance of message delivery and retention.
- Wei explains that the method of communication can affect how information is remembered and understood.
Sometimes he would deliver a strategy message for the company, like, this is our mission for the year, whatnot. And then just like a week, know, people would forget what that message was.
This quote illustrates the challenge of ensuring that important information is effectively communicated and retained within a company.
Evolution of Communication in Business
- Stebings reflects on the evolution of communication within a business environment, emphasizing the importance of making messages memorable and viral.
- The discussion highlights the use of multiple mediums to reinforce a message, such as visual aids and animations, to ensure it sticks in people's minds.
- Steve Jobs is used as an example for his meticulous approach to product launches and keynotes, embedding products in culture through perfect presentation.
"And so I saw him evolve his way of communicating to the company in order to sort of really harden his messages, to make them almost viral, to make them stick in people's heads."
This quote explains the strategic evolution of internal communication within a company to make messages more impactful and memorable.
The Graph Design Problem in Social Apps
- Eugene Wei identifies a problem in social apps known as the "social graph debt," akin to technical debt in technology firms.
- The problem arises when the content feed is tied to a user's follow graph, leading to irrelevant content if the wrong people are followed.
- Path dependence in social networks, as complex adaptive systems, can lead to "context collapse" and a degraded user experience.
"In social, we have something that I think of as social graph debt in particular."
Eugene Wei introduces the concept of social graph debt, which describes the long-term consequences of a user's follow graph on their content feed and overall experience on social platforms.
Impact of Social Network Architecture on User Experience
- The architecture of social networks, such as the content feed linked to the follow graph, heavily influences user experience.
- Social networks are path-dependent, and early decisions on whom to follow can lead to significant downstream consequences.
- The decision on what type of social graph to encourage is crucial for new social apps and should be considered early in development.
"I think a lot of social apps today, especially the new ones, should think really carefully downstream about what type of social graph do I want people to actually build?"
Eugene Wei stresses the importance of deliberate planning in the early stages of social app development regarding the structure of social graphs and their long-term effects on user experience.
- Eugene Wei reflects on the best and worst design decisions in social media, noting the singular feed as both the most momentous and controversial.
- The singular feed, while efficient for growth, has contributed to the amplification and distribution issues we see in social media today.
- The debate around free speech has not changed, but the scale of message amplification and interaction has, impacting public discourse.
"The single most momentous decision, you could say it's probably both the best and worst decision."
This quote captures the dual nature of the singular feed in social media as both a key factor in growth and a contributor to current social issues.
The Concept of "Status as a Service"
- Eugene Wei's piece "Status as a Service" explores the dynamics of social networks and human behavior regarding status.
- The piece suggests that humans seek status and will gravitate towards the most efficient path to gaining it.
- Social networks grow by creating a status game, issuing "status tokens" like likes and follows, which are combined into distribution.
"So at the time I wrote the know, what led to it was that I was curious about social networks."
Eugene Wei provides context for his investigation into the growth dynamics of social networks and the human pursuit of status, leading to the concept of "Status as a Service."
- Social media algorithms can fuel runaway growth in status-seeking behavior.
- Users mimic successful strategies on social media to gain status.
- The initial draw to a network might be something like status (or NFTs in crypto), but the hope is they stay for the network.
- Before a network has formed, there must be an enticing element ('X') to attract users.
"Eventually they will start copying. And so you get this kind of runaway growth, status seeking."
This quote emphasizes the tendency of social media users to copy strategies that appear successful, leading to a rapid increase in status-seeking behavior as part of the network effect.
Misunderstandings about Status as a Service
- Some people believe that advocating for 'status as a service' means encouraging status games without considering the negative aspects.
- Status games can make people feel empty and bad about themselves.
- Status is a powerful incentive due to human nature, and it should be used to reward positive contributions.
- Societies can choose to elevate certain professions or behaviors to high status.
"I'm not saying that we should amplify status games all over the place. I just think status is so powerful and incentive because of human nature that we need to think very carefully about what we make high status inside the products that we build."
This quote clarifies that the goal is not to indiscriminately promote status games, but to recognize the power of status as an incentive and use it thoughtfully to elevate beneficial roles and behaviors.
Status Seeking and Human Nature
- The discussion explores whether people seek status because they are insecure and egocentric.
- Status seeking is part of human nature, but it can lead to unhappiness if one always compares to others.
- In tech, the Pareto distribution of wealth and status can cause dissatisfaction.
- Status-seeking has been amplified by social media to a scale unprecedented in human history.
"I mean, tech is one of those complex adaptive systems which behaves by power laws, right? Kind of. The Pareto distribution of status and wealth in Silicon Valley is always going to bother some people."
This quote discusses the nature of the tech industry, where wealth and status are distributed according to power laws, leading to significant disparities that can affect people's happiness.
Status and Its Ancillary Benefits
- Status is not just about recognition, but it can lead to practical benefits like deal flow, LP dollars, and winning investments.
- On Twitter, building a personal brand through tweet storms has become a strategy for gaining status and its ancillary benefits.
"Challenge more is like status alone is not what's attractive, but it's like status for me is deal flow. It's LP dollars. It winning investments, the ancillary benefits that status brings, which makes status the coveted asset that it is for me and for many others."
This quote highlights that the pursuit of status is not solely for recognition but for the tangible advantages it can bring, particularly in the context of investment and entrepreneurship.
Impact of Viral Content on Personal Brand and Opportunities
- Writing a piece that goes viral can lead to job offers, consulting opportunities, and networking.
- The author's piece on status linked social capital theory to tech products, leading to global recognition and invitations to speak internationally.
- Status dynamics vary by culture, affecting why certain products succeed in some markets and not others.
"If you write a piece that goes viral online, you will have people from different companies ask to grab coffee with you. You will get different offers, job offers, because that piece then attaches to your personal brand for a lot of people."
This quote illustrates the impact of creating influential content, as it can enhance one's personal brand and open up professional opportunities.
Choosing Independence Over Venture Capital Offers
- The author contemplates the decision between joining a venture firm and remaining independent.
- There is a desire to have a hands-on impact through operating roles rather than just theorizing.
- The author believes that the most significant impact of tech on the world is still to come, and there's a desire to be part of it.
"I still feel like the largest impact of the Internet and tech on the world is still ahead of us, and it's still fun to be a part of that as long as you feel like you have the energy to do it."
This quote conveys the author's belief in the future potential of tech and the internet, and a preference for being actively involved in shaping it, over potentially more lucrative but less hands-on roles in venture capital.
- The media landscape has become highly competitive as different forms of media now compete for attention on the same devices.
- The shift to smartphones and the internet has made various media industries direct competitors in the attention economy.
- Content creators must now compete with the best in all industries, making the media industry zero-sum.
"Now, every time I unlock my phone, I have every one of those things that I just talked about on my phone at my disposal. So I actually get the choice of what I want to do at that moment."
This quote reflects on the current state of media consumption, where all forms of entertainment are accessible on a single device, leading to intense competition for user attention.
Geographic Tribalism and Changing Fan Bases
- Traditional sports have historically enjoyed a monopoly on geographic tribalism.
- Fans find a sense of tribal connection and identity through their sports teams.
- Newer generations are finding similar connections through video games and social media.
- Industries that once had a captive audience now face competition for attention from different verticals.
"For decades, we had a monopoly, essentially, on sort of this geographic tribalism. You'd be like, wow, I'm a Yankees fan. And you feel really connected to other Yankees fan. It gives you this rush of being tribally affiliated."
The quote emphasizes the strong sense of belonging and identity that sports teams have traditionally provided to fans, which is now being challenged by other forms of media.
- The abundance of media choices can lead to decision paralysis.
- The paradox of choice is a complex issue, especially when considering the infinite pool of media.
- Companies are grappling with how to attract and retain consumer attention.
- Understanding cross-industry strategies for capturing attention is crucial.
"Do you worry about the paradox of choice?"
This quote introduces the concept of the paradox of choice, where the abundance of options can make it difficult for consumers to choose and commit to a particular activity or media.
Strategies for Attention Acquisition
- All forms of media are in competition for consumer attention.
- Companies are studying tactics across industries to capture attention.
- There are efforts to understand how different mediums like games, podcasts, and books retain interest.
- The gaming industry is highlighted for its rapid iteration and social aspects.
"How do games do it? How do podcasts do it? How do books still capture attention?"
This quote reflects the speaker's curiosity about the various methods used by different forms of media to engage audiences and maintain their attention.
Admiration for the Gaming Industry
- The gaming industry is recognized for its social nature and potential as a metaverse.
- Gaming is a rapidly evolving industry with quick iteration cycles.
- Video games are seen as a key area to study for media strategies.
- Issues like gender imbalance and trolling are acknowledged but are changing over time.
"I think games are probably the space that I study more than I used to."
The quote indicates the speaker's growing interest in the gaming industry as a significant player in the media landscape and a source of learning for other industries.
Personal Preferences in Reading
- The speaker distinguishes between fiction and non-fiction preferences.
- "The Sound and the Fury" by Faulkner is admired for its stream-of-consciousness technique.
- "The Visual Display of Quantitative Information" by Tufte is praised for its clarity and design.
- These books are valued for their ability to reflect human experience and communicate elegantly.
"I really love Faulkner's the sound and the fury just because it's a book I just keep rereading and wrestling with."
The quote reveals the speaker's appreciation for Faulkner's novel and the complexities of its narrative style, which prompts repeated engagement with the text.
Strengths and Weaknesses
- The speaker's calm demeanor under stress is viewed as a strength.
- There is a recognition of the need to better connect with people's emotions.
- Charisma and emotional appeal are important for leadership and communication.
- The speaker is working on balancing rationality with emotional intelligence.
"I tend to have what I think of as a slow heartbeat. I tend to be pretty calm under situations of stress."
This quote highlights the speaker's self-perceived ability to remain composed during stressful situations, which is seen as advantageous for decision-making.
The Power of Storytelling
- Storytelling resonates due to its familiar structure and pattern recognition.
- Inductive reasoning is natural for humans, making stories an effective communication tool.
- The speaker emphasizes the importance of resonant storytelling in various contexts.
"Stories offer the comfort of pattern, pattern recognition."
The quote underscores the effectiveness of storytelling as a method for conveying ideas in a way that aligns with human cognitive processes.
Advice on Intuition
- The speaker encourages trusting one's intuition for decision-making.
- Intuition is believed to be informed by a vast amount of data accumulated through life experiences.
- There is a challenge in reconciling the intuitive approach with the analytical methods often used in product development.
"The biggest thing I say is I tell people to follow the little voice in their head."
This quote conveys the speaker's advice to rely on intuition, suggesting that it is a valuable guide in making choices.
Future Aspirations
- The speaker is contemplating a return to operational roles in the tech industry.
- Past experiences and age have made the speaker more selective about future endeavors.
- There is an acknowledgment of the intense nature of founding and operating companies, but also a recognition of the fulfillment it brings.
"Like I said, I want to be back out on the operating side again."
The quote indicates the speaker's desire to return to a more active role in the tech industry, leveraging past experiences for future projects.
Mutual Admiration and Gratitude
- The speakers express mutual respect for each other's work.
- The speaker is honored to participate in the podcast and is a fan of the host's work.
"No, it was an honor. I'm a big fan of your podcast as well, so I'm tickled that I got to be on it."
The quote reflects the speaker's appreciation for the opportunity to be a guest on the podcast and the mutual admiration between the host and the guest.