from Hacker News

You Can't "Win" in Tech Unless You Cheat

by midzer on 2/7/25, 12:38 AM with 25 comments

  • by toast0 on 2/7/25, 1:24 AM

    > PayPal started by paying people to sign up. Their viral growth came from essentially bribing users with $10 to join and $10 for each referral. That’s not innovation — it’s buying market share with venture capital.

    Traditional banks used to give out toasters. My credit union gave my kid a piggy bank and regularly offers referral bonuses.

    Paying people to sign up is an advertising expense. Having a useful product is what keeps people around. Spending the advertising budget to get users before the product is ready to keep users and provide a return is a pretty easy mistake for lots of products.

    If this was the biggest dirt they decided to write about, I don't think they dug very far. I think PayPal avoided getting banking or money transmitting license for quite some time, which would be more in line with the title of the article. There's lots of reports of at least untransparent, if not unfair account closures and it's credibly claimed that PayPal does not return account balances in a timely fashion in these cases either.

    Similar with the amazon complaint. There's got to be something better to complain about that they invested investor money in building a business that needed continual invesment until they found their niche.

  • by wavemode on 2/7/25, 1:26 AM

    The title of this article does not align with its actual content.

    A more accurate (albeit less enticing) title would've been "Some companies in tech win by cheating. Some do not. Which will you choose?"

  • by nickv on 2/7/25, 1:13 AM

    Notwithstanding modern time, Google is notably absent in this article because it provides a good counter to it.
  • by 827a on 2/7/25, 1:20 AM

    Boring, yawn, etc. Every mega-successful company ever lied, cheated, and stole their way to the top. That's how they win. Do you think Standard Oil and JP Morgan was a paragon of ethics? Why do you think tech would be any different? The article doesn't make any new or unique points against tech as an industry, its just making boring socioeconomic commentary on how every human system has worked, ever.

    The CIA literally overthrew the democratically elected leader of Guatemala to protect the interests of an American banana company. But, Paypal paying their users $10 to sign up is spooky, yeah.

  • by natdempk on 2/7/25, 1:29 AM

    > See the pattern? The biggest tech successes of our era didn’t win through superior technology or innovation.

    - PayPal won by creating technology that makes it easier / possible than any alternative to send and receive money via the internet.

    - Uber won through creating an app that lets you hail a ride and creating a marketplace for that.

    - Airbnb won through innovating on the social idea of paying someone and creating a marketplace for that.

    - Facebook won through creating an innovative social networking technology and creating an ad marketplace on top of that.

    - Amazon won through creating an innovative website and marketplace for goods that offered innovations to the consumer like quick shipping times and risk-free purchases via easy returns.

    - Tesla won through literally creating a product (EV) and charging network for EVs that people are willing to pay for.

    This article is arguing in bad faith. All of these services won because they created something that solved a problem and created value for millions or billions of people, either making plenty of money along the way, or with high potential to make money at any given point in time. If this is cheating, then all of capitalism and the innovations that scale and improve life for the world via capitalism are all "cheating". Build something people want and whatnot.

  • by throwawaysleep on 2/7/25, 1:23 AM

    > While Silicon Valley plays Monopoly, a parallel universe is growing in the shadows. Developers building open-source tools that generate $50k monthly. Newsletter writers earning more than startup CEOs. Product creators who never touch venture capital but build sustainable wealth.

    I mean, have any of these truly won yet? It seems to early to tell.