The Elimination Strategy - Why More Makes Your SaaS Worth Less

By Andrew on 11/1/2024

The most valuable companies in the world aren’t built by adding. They’re built by eliminating. Not by giving customers more options, but by systematically removing every friction between them and what they want.

The Pattern That Built Billion-Dollar Companies

Stripe eliminated:

• Payment gateway setup
• Merchant account creation
• PCI compliance
• International payment complexity
• Payment reconciliation

Amazon eliminated:

• Store visits (shop from home)
• Product hunting (search + recommendations)
• Return trips (free home pickup)
• Shipping decisions (Prime = 2-day default)

HubSpot eliminated:

• Multiple marketing tools
• Contact list management
• Campaign tracking spreadsheets
• Lead scoring complexity
• Marketing-sales handoffs

Snowflake eliminated:

• Database capacity planning
• Data warehouse maintenance
• Performance tuning
• Scaling complexity
• Data silos

Tesla eliminated:

• Gas stations (home charging)
• Oil changes (no engine)
• Dealerships (direct sales)
• Annual maintenance (software updates)
• Price negotiations (fixed pricing)

Netflix eliminated:

• Late fees
• Return trips
• Selection limits
• Schedule constraints
• “Out of stock” messages

iPhone eliminated:

• Physical keyboards
• Styluses
• Camera carrying
• MP3 players
• Manual syncing

Uber eliminated:

• Taxi calls
• Payment handling
• Pickup uncertainty
• Route negotiations
• Price haggling

How to Spot Elimination Opportunities

1. Map Industry Friction

List everything customers hate but accept:

• Waiting periods
• Physical visits
• Manual processes
• Multiple steps
• Required expertise

2. Ask The Elimination Question

For each friction: “What if this entire step disappeared?” Not “How do we make it easier?” But “How do we make it unnecessary?”

3. Find Technology Leverage

What enables total elimination:

• Mobile devices
• Cloud computing
• Payment systems
• Location services
• AI/automation

Don’t ask: “How can we do this better?” Ask: “How can this entire friction disappear?”

The most valuable companies aren’t winning by helping customers do more. They’re winning by letting customers do less.

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