There Are Different Types Of Scale And You Might Pick The Wrong One

Media companies “scale” their way by hiring more people to write articles/news/whatnot.

I use scale in quotation marks as it’s not the real scale we’re used to when it comes to SaaS companies.

When we think of SaaS scale, we’re thinking of machines doing the work we’d have otherwise done it. Faster and more efficiently.

Content creation, though, is something that might hit the last spots of the “solved by machines” list. Therefore we use “scale” in the old-fashioned meaning.

However, not all scale needs to be infinite. In some cases — such as media — you get diminishing returns by having more and more writers.

How many more news can you cover?

Or think Uber. After a certain point, having more drivers in the same area will only lead to perfect competition, which is not a very happy concept applied to a capitalistic world.

What’s the point of what I’m saying? Identify the scale you want to go for — most probably the infinite one. And go for that.

Maybe you’ll want to go for the diminishing-returns one — that’s okay as well. It might be easier in the short-term, and that could enable you to hit your long-term goal.

Just be aware of the different types of scale.

About Ch Daniel

I’ve updated this signature in July 2020, so older mentions of the signature might not make sense.

I currently don’t write on this blog anymore. I wrote daily for 9 months on this very blog, but now I’m focused on building the CH Group.

If you want to follow my newer articles, check out the CH Group’s blog.

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