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How to Build World-Class Products

Building
December 5, 2024
Learn to balance vision, data, and feedback to create products users love. Insights on AI, product-market fit, and effective product management.
Topics discussed in the episode:
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How did Deel reach $12B valuation in 5 years?
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Why is removing friction key to user engagement?
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How does company DNA influence product development?
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Why is being in the details important for strategy?
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How to prioritize product decisions effectively?
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Should startups aim to replace humans with AI?
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How to build products people love?
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When should startups hire their first PM?
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Why is user attention critical?
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How can AI provide leverage to humans?

How did Deel reach $12B valuation in 5 years?

Understanding how startups can achieve massive growth in a short time.

\"For all those founders like Deel's, Deel's 5-6 years old... there is a path to being, you know, an enormous tens of billions of dollars valuation in a real short period of time.\"

  • Aaron hints at valuable lessons from Deel's approach to building products.
  • Rapid scaling is achievable with effective product strategy.
  • Founders can learn from Deel's experience to accelerate their own growth.

Why is removing friction key to user engagement?

Keeping users engaged requires minimizing friction in their experience.

\"If you just make it easy, you'll see that traction... you just didn't give them time to have life get in the way.\"

  • Aaron highlights that users can easily get distracted if tasks are complicated.
  • Simplifying processes keeps users focused and engaged.
  • Reducing friction prevents users from abandoning your product.

How does company DNA influence product development?

A company's core identity shapes how it approaches product development.

\"When I think about building great products, you have to think about what the DNA of a company is.\"

  • Aaron emphasizes that understanding company DNA is crucial in product decisions.
  • Companies innovate in ways aligned with their core identity.
  • Aligning product strategy with company DNA ensures consistent growth.

Why is being in the details important for strategy?

Great strategic insights often come from being deeply involved in the details.

\"...every great strategic insight I've ever had and every great strategic insight I've seen people who are much better than me have, has come from being in the detail...\"

  • Aaron highlights that being in the details leads to valuable strategic insights.
  • Understanding nuances can reveal opportunities others may miss.
  • Founders should stay close to the granular aspects of their product.

How to prioritize product decisions effectively?

Balancing product priorities is a common challenge for founders.

\"I think it is rare. A team doesn't get stuck there...effectively find themselves waking up and being a custom development shop and, you know, wasting a lot of money and time.\"

  • Aaron advises understanding the underlying customer needs behind feature requests.
  • Focus on solving core problems rather than endlessly adding features.
  • Avoid becoming a custom development shop that reacts to every request.

Should startups aim to replace humans with AI?

Understanding the role of AI in augmenting rather than replacing humans is crucial.

\"I think the companies that are not going to be as successful are trying to replace humans.\"

  • Aaron suggests that startups should focus on augmenting human abilities with AI.
  • Replacing humans entirely with AI may not lead to successful products.
  • Use AI to provide leverage and enhance human productivity.

How to build products people love?

Creating products that customers truly love is essential for startup success.

\"...if you don't have conviction that this would be a thing that will, that there will be a product that someone loves, keep trying.\"

  • Aaron stresses the need for conviction in your product vision.
  • Focus on solving fundamental human needs to create products people love.
  • Being close to customers helps recognize when you've built something they truly value.

When should startups hire their first PM?

Deciding when to hire your first product manager is a critical decision for founders.

\"I typically see PMs, like the first PM, be hire number, I don't know, 30, number 40, something like that. I think that's the right sort of time to think about it...\"

  • Aaron advises hiring the first PM around employee number 30-40.
  • The first PM should provide leverage to the founder without taking over the product vision.
  • It's crucial to find someone who understands the founder's vision and can execute details.

Why is user attention critical?

Understanding user attention is vital for startup success.

\"People think of the user as like, you know, it's kind of like you have to build for a five year old, you know, like they're, they're stupid or whatever. And I think the right way to think about it is like, they just don't care nearly as much as you do.\"

  • Aaron highlights that users are easily distracted and may not prioritize your app.
  • Making your product easy to use keeps users engaged and focused.
  • Reducing friction helps prevent users from abandoning your app.

How can AI provide leverage to humans?

In the startup world, leveraging AI to increase human productivity is crucial.

\"It's making it so more and more of a human's day is high leverage work.\"

  • Aaron believes AI should augment human capabilities, not replace them.
  • By automating low-value tasks, AI allows humans to focus on high-impact work.
  • Startups should use AI to give their team members more leverage.