If you have examples of companies supporting or refuting this statement, would love to hear about them and why!
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Clarification: I’m not saying don’t invest in sales/marketing/distribution. Those are all important. I think about CAC, retention, referral rate etc. as a *proxy* for product love. Investing in product can lead to a step change in distribution efficiency.
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I like this. Critics in your comments interpret you saying “build it and they’ll come” - that’s not your point. Your point is optimizing unit economics is capped upside, whereas improving product can have unlimited upside. Key phrase is “truly amazing product”
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Yes exactly!! Thanks Kiva :)
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What about the adage: 'First time founders focus on Product. Second time founders focus on Distribution'?
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I think adages need to be updated as times change :) Barriers around distribution are coming down. Before, you needed relationships with distributors to get in stores, today anyone can sell on Instagram. Before, you needed to sell to a CIO. Now, any employee can buy software.
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This is true if the person who loves the product is the one who also pays for the product (or is willing to pay for the product). Not always true in spaces like healthcare
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That’s a great point. True for enterprise B2B software too.
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Counterexample: MoviePass
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Many people have mentioned moviepass, but I would challenge— does one love the product experience of unlimited movies that much or do they love the price? If it’s that good, why aren’t people willing to pay a sustainable price for it?
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Čini se da učitavanje traje već neko vrijeme.
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