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Their product definition fluctuates wildly – one month, it’s a dessert topping, the next it’s a floor wax. Their productdevelopment team is hard at work on a next-generation product platform, which is designed to offer a new suite of products – but this effort is months behind schedule.
As an investor and former founder, I know that scalable growth (and the pretty hockeystick graph) is the holy grail for every startup. The evolution of the growth function changed this dynamic, mashing together product dev and marketing as integrated functions. New platforms can drive significant growth for some time.
Then they noticed that they’d been cannibalizing other channels—people converting as referrals were leads already acquired from other channels. Incentives work, but they might work too well and convert people who are not really into the service/product or cannibalize other channels. Conclusion.
In future posts I’ll describe how Eric Ries and the Lean Startup concept provided the equivalent model for productdevelopment activities inside the building and neatly integrates customer and agile development. They never understood Market Type. Why does Market Type matter? End result?
Forget about traction and hockeystick growth. So you will likely get outspent on any paid marketing channel you may use to drive traffic to you at scale if there are other people trying to drive traffic to the same property. Another way is to have unique promotion channels, but these must be scalable.
Forget about traction and hockeystick growth. So you will likely get outspent on any paid marketing channel you may use to drive traffic to you at scale if there are other people trying to drive traffic to the same property. Another way is to have unique promotion channels, but these must be scalable.
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