4min chapter

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The Rise of the Exponential Organization

a16z Podcast

CHAPTER

How to Scale a Business With Zero Cost of Supply

The key is that you can keep a very small resource footprint and use a set of externalities is to scale very quickly when you're building business worry about demand and supply. The internet came along it allowed us to drop the cost of demand exponentially online marketing referral marketing everyone for your portfolio companies is trying for the viral loop in which case customer acquisition cost go to zero near zero. For the first time in business history you could acquire customers at very low cost right amazing what we find with exponential organizations they found a way of dropping the cost of supply exponentially. If you're a large established company trying to retrofit your organization to become an exponential organization is almost impossible.

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