Inverted Passion

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Review of 2023

Posted on Author Paras ChopraPosted in Notes and Summaries, Reading Recap

Time is strange – 2023 simultaneously felt too long and too short. It was short because I remember recently writing my 2022 review, and it was long because I ended up packing a lot of stuff into it.

✅ Train 5 days a week (including Mixed Martial Arts)

I did manage to train 5 days per week (at least for the latter part of the year). Training every weekday has become a habit now, and it’s something I wish to never give up on.

And yes, it’s three days of strength training and two days of MMA!

✅ Got myself a tattoo!

I’m endlessly fascinated by the concept of time, and how one can never grab it still. Time starts when we become aware of it, and ends with death. So, in many ways, we’re nothing but time.  ...  Read the entire post →

Notes from the book “Hooked”

Posted on Author Paras ChopraPosted in Book Summary, Notes and Summaries

I re-read the book Hooked by Nir Eyal and these are my notes.

1/ The key question that the book answers is: how to make habit-forming products. And its answer is a model that involves four stages: a) trigger; b) action; c) variable reward; d) investment

2/ Why should products be habit-forming? It’s because only those products that become part of someone’s daily life go on to become valuable. So, whether a product has habit formation potential is a leading indicator for whether the product will turn out to be valuable. ...  Read the entire post →

Notes on how Facebook ads work

Posted on Author Paras ChopraPosted in Notes and Summaries

I was studying Facebook ads system for Nintee, made some notes that you might find useful.

  • Facebook ads work through auction: each ad opportunity has an auction, the winner of which is decided by total value, which is So in this case, your ad will be shown to more people if
    • You have a higher bid
    • Or, more people are likely to take action that you care about
    • Or, the quality of ad is high (not spammy etc)
    • Bidding is mostly automatic by Facebook, and the way it does for maximizing results is that it starts with low bids but then gradually increases it ads don’t end up winning the auction (i.e. has lower total value) Let’s say you have two products: a) highly attractive cake (low cost and super yummy) and b) broccoli, and both are competing for the auction
      • If the objective is to find the highest volume for a given total cost (let’s say Rs 1000)
        • FB will start with low bids for both, and since more people are likely to click on the cake ad, its estimated action rate will go up and for the same bid, it will end up winning the auction
        • The only way for the broccoli ad to win an action is to increase the bid
        • So given a fixed budget Rs 1000, the cost per click of broccoli ad will be much higher than for cake (purely because more people are interested in cake v/s broccoli)
        This is why running ads for a concept before building it could give an honest signal of its attractiveness
        • Since Facebook always tries to give maximum value to advertiser and the most relevant ads to its users, you can imagine it as a matchmaking machine that minimizes the cost it takes for advertisers to reach a relevant audience
        • So, a low cost per action from FB ads tells you clearly that a significant number of people are going to find it attractive

        A good analogy to understand all this is to think about is a game: ...  Read the entire post →

Notes on how Supercell is run

Posted on Author Paras ChopraPosted in Entrepreneurship, Notes and Summaries

Supercell, the company behind the massively popular Clash of Clans game, has one of the highest valuation per employee figures out there: they’re valued at $32mn per employee. That’s insane! How do they do it?

Via The World’s Most Valuable Per Employee Company: Supercell

1/ What struck me is the sheer number of games they kill each year?

They seem to be killing 9 games for each game they release. Some of these games have been in development for years, and have the potential to be in the top 25 games worldwide. And, yet, they get killed.

2/ Why are they killed? It’s because these games don’t meet their internal benchmarks (primary of which is 30-day retention).  ...  Read the entire post →

How to increase wealth for everyone

Posted on Author Paras ChopraPosted in Book Summary

I’ve started reading The Capitalist Manifesto, a book full of data on how free markets generate prosperity.

The author is nuanced and uses data and logic to show how we should be rooting for capitalism (instead of bringing it down).

Income and wealth inequality created as a function of entrepreneurship is not a bad thing per se. Risk-takers and innovators derive a higher income when they create much more value elsewhere.

Nobody hands over a million dollars to someone else for free. Profit earned by someone in free markets is typically a surplus made available to them because they expanded the pie for everyone. (And not because they stole it from someone else. Capitalism is NOT a zero-sum game.) ...  Read the entire post →

Notes from the book “Magic Words”

Posted on Author Paras ChopraPosted in Book Summary

Just finished reading Magic Words by Jonah Berger and my notes follow.

1/ Most of us spend a significant amount of time in assembling the thoughts we want to convey, but assume the words to convey them as a given.

2/ This book – written by a professor of business – takes the view that the specific words we choose to communicate have an enormous impact on the listener.

3/ Since words paint an image in the listener’s head, the same idea presented differently can paint a very different image. ...  Read the entire post →

Why you will skim this article

Posted on Author Paras ChopraPosted in Economics, Psychology

Most likely, you’re going to read this sentence and hit the back button.

Still here?

Good, then you’re likely to scan through a few paragraphs in this article and then give up. (Unless, you’re a long-time reader and trust that my writing is worthy of your time. More on this later)

Why are humans so impatient on the web?

Back in the early 1990s, when the web was getting started, websites looked like this.

Today, the same website looks like this.

What happened?

The answer to the question of why the web is increasingly becoming more visual and less text-heavy will also shed light on how we decide what to spend time on, a question that creators and entrepreneurs need to be obsessed with. ...  Read the entire post →

Games are problems people pay to solve

Posted on Author Paras ChopraPosted in Book Summary, Mental Models

Good definitions are powerful. Lately, while reading The Art of Game Design, it became clear to me that the author’s definition of games makes a lot of sense. He defines games as problems that people pay to solve with either their time or money.

Unlike movies or books, games are not passive: they require an active participation and in that sense, they’re problems to be solved. And the fact that we willingly pay (with time or money) to solve those problems is fascinating.

Even though I’m not a gamer, I’m building a consumer startup in the behavior change domain and that’s pushing me to study games. Specifically, I’m interested in exploring what is that about great games that people will spend many hundreds of hours trying to master them, while most consumer experiences (including courses purchased or apps installed) have a ~90% churn of users on day 1 itself.  ...  Read the entire post →

The Anti-Productivity Manifesto

Posted on Author Paras ChopraPosted in Notes and Summaries

After a barrage of recommendations on my twitter, I finally ended up reading Oliver Burkeman’s Four Thousand Weeks. The central premise of the book is simple: everyone has got about four thousand weeks to live, and spending that limited time chasing efficiency is wrongheaded.

The message seems old. The entire self-help industry revolves around saying variations of it. Stay in the present. Enjoy the moment. Seize the day. But where the book differs from the rest is that it’s both poetic and philosophical. It’s the kind of the book that, once you finish, you end up mumbling: gosh, I should have written it. ...  Read the entire post →

Startups live and die in a multidimensional landscape

Posted on Author Paras ChopraPosted in Mental Models

Startups are like heat seeking missiles, except they seek profit and live in a multidimensional world where one mistake means missing the target by a mile.

The startup stack of success

Startups are hard because they require several things to go right simultaneously. It’s not sufficient to get one thing right, an entrepreneur must solve this multidimensional puzzle perfectly.

There are many smaller but important dimensions, but here are the biggest ones that need to be just right for a business to succeed:

  • Is the problem you’re solving a real one, or is it just in your head?
  • Even if the problem is real, are people actively looking to solve it? There are many problems that are merely inconveniences that not many people bother to solve. Is your problem one of that? 
  • Even if the problem has a high enough priority and that people are looking to solve it, are they willing to pay for it? There are many problems which people want a solution for, but they’d not pay anything or much for it because they’re habituated to expect a solution for free. For example, news and information is valuable to people, but people have come to expect to get it for free on the Internet.
  • Even if the problem is real and people are willing to pay for it, do you have the required capabilities to develop a solution? Some problems may have challenging solutions that are not easy to execute.
  • Even if you’re able to solve a problem that people are willing to pay for it, is there a way you can profitably market your offering to them? Marketing costs money, and often potential customers may not be aggregated at one place for you to profitably market to them.
  • Even if you’ve found a distribution channel, does your business have any lasting competitive advantage that will prevent a bigger competitor or another startup from snatching your customers?
  • Lastly, assuming you do everything right, will you deliver positive unit economics? Your business will struggle unless you’re predictably generating cash flow.

Remember: because so many things have to go right, most successful entrepreneurs either get lucky on all these aspects or they have a unique insight or expertise about one of the above aspects that others don’t have. ...  Read the entire post →