Instead of inventing new features, Prepared identified its most lucrative expansion opportunity by seeing users' painful workarounds. They noticed 911 dispatchers manually copy-pasting foreign language texts into Google Translate—a clear signal of a high-value problem they could solve directly.

Features follow an S-curve of value. Early effort yields little, then a steep rise, then diminishing returns. Use this model to determine if a feature needs more investment to become valuable or if you've already extracted its maximum worth and should stop investing.

Intentionally create open-ended, flexible products. Observe how power users "abuse" them for unintended purposes. This "latent demand" reveals valuable, pre-validated opportunities for new features or products, as seen with Facebook's Marketplace and Dating features.

Treat product data as a reflection of human behavior. At DoorDash, realizing the order status page had 3x more views than the homepage revealed intense user anxiety ("hanger"). This insight, derived from a data outlier, directly led to the creation of live order tracking.

People are unreliable at predicting their future behavior. Instead of asking if they *would* use a new feature, ask for a specific instance in the last month where it *would have been* useful. If they can't recall one, it's a major red flag for adoption.

Figma learned that removing issues preventing users from adopting the product was as important as adding new features. They systematically tackled these blockers—often table stakes features—and saw a direct, measurable improvement in retention and activation after fixing each one.

StatusGator retains a free plan because its value—an outage alert—is unpredictable and may not occur during a short trial. The free plan acts as a long-term nurturing tool, converting users months or even years later when they finally experience the 'aha' moment.

Buildots' growth inflection happened when they stopped selling a data platform and started selling proactive risk alerts. The pitch changed from "Here's data to help you" to "If you don't fix this now, your project will fail." This simplified the value proposition and created urgency.

The founder of StatusGator calls inventing the 'status page aggregator' category a mistake. While it eventually provided a first-mover advantage, it meant years of slow growth because no one was searching for the solution, highlighting the difficulty of educating a market.