There are two kinds of companies, those that work to try to charge more and those that work to charge less. We will be the second.

There are two kinds of people, those who do the work and those who take the credit. Try to be in the first group; there is less competition there.

Great industries are never made from single companies. There is room in space for a lot of winners.

On the Internet, companies are scale businesses, characterized by high fixed costs and relatively low variable costs. You can be two sizes: You can be big, or you can be small. It's very hard to be medium. A lot of medium-sized companies had the financing rug pulled out from under them before they could get big.

There are two ways to extend a business. Take inventory of what you're good at and extend out from your skills. Or determine what your customers need and work backward, even if it requires learning new skills. Kindle is an example of working backward.

It's not an experiment if you know it's going to work.