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

Amazon eliminated:

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

Dominated retail by removing every shopping friction

Tesla eliminated:

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

Became most valuable car company by removing ownership friction

Netflix eliminated:

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

Killed Blockbuster by removing every viewing friction

iPhone eliminated:

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

Reimagined mobile by removing device friction

Uber eliminated:

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

Transformed transportation by removing every ride friction

Spotify eliminated:

• Music purchases
• Downloads
• Storage limits
• Playlist copying
• Device syncing

Killed music ownership by removing every listening friction

Google eliminated:

• Library visits
• Expert consultation
• Directory browsing
• Local limitations
• Information gatekeepers

Built search empire by removing information friction

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

The next massive opportunities aren’t in adding features or options.

They’re in eliminating every step between customers and their goals.

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

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

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