How to get your first 10 customers
danshipper.com
danshipper.com
Maybe I'm just sleepy, but I'm starting to get tired of condescending advice from newly-born entrepreneurs.
The most effective way to learn is to go out and find the people who should be using the product, and talk to them.
Problem is? if they are taking the time to talk to you, they are giving you free advice. For whatever reason, they like you.
If you are doing a product that does face to face sales? that's fine. People like you, they buy your product.
However, this tells you very little about how good the product is on it's own, as a low-touch commodity product; so it's not all that useful if you are building something to scale (rather than scaling a marketing organization, which is a very different sort of problem.)
Also, most people? they are trapped in their own worldview, so they can't tell you what they need. "If I had asked people what they wanted, they would have said faster horses" - Really, to actually innovate? You need to both understand customer needs /and/ the technologies you have on hand that could serve those needs in ways they are not currently being served.
My philosophy has always been to build into a market I knew. Sell to yourself. If you want to sell to a new market, learn about /that/ market first. I mean, this approach has it's own problems[1], but eh, it does mean you know when you are providing actual value, rather than having to sort out "this person likes me" vs. "this person likes my product"
AdWords is great for validating B2C products because you NEED the opinion of MANY people to judge the viability of your product/idea.
In B2B your customer typically has money on the line, and it's quite straightforward for them to evaluate your value proposition: "Does this make me money, or lead to making me money, how much?".
In B2C the question becomes: "Do I like/enjoy/have fun with X product?" typically far more subjective and whimsical. Subjectivity shines in small samples (<10 people) and shrinks in large samples (>1000 impressions).
I agree regarding features/press however.
This doesn't directly translate to people opening up their wallets and paying for said product.
Chrome web store link: https://chrome.google.com/webstore/detail/rapportive/hihakjf...
>> ... tool that no sales team should omit.
I even have a SaaS product built, but yet to deploy - I'm testing the following way:
...i put a "pre-order" or "buy" via gumroad widget, and will start deploying once i have my first purchase. just stats on how many people go down the funnel[3]( clicked the "for companies" link, # who viewed price, # who clicked "i want this" is worth the 10 mins setting up your product on gumroad ...
~B @verbsapp
[1] http://olark.com [2] http://nerdydata.com [3] http://gum.co/wvFqR
The unfortunate truth is that early in a product's lifecycle, I suspect the quality (as programmers measure it) of the product, the beauty (or lack thereof) of the codebase, and even outright bugs, misfeatures, and poor performance, are not the reasons the product does or does not get traction. As OP says, what gets traction is product/customer fit -- the NEED a potential customer feels for the product. And if the wrong customer is pitched, and the right customer does not know about your product, all the tinkering and new features and bugfixes and refactoring in the world will not change that situation.
TL; DR: Programmers have code hammers, so they just bang the product nail again and again.
You could certainly use advertising to collect email addresses, and then call those people to figure out what they want. The reason I don't like that as much is it puts another layer of specialized skill between you and your prospects. You have to dump a bunch of money and time in to learning how to write correctly targeted ads that convert before you even know who you're trying to convert, or what they care about. That's a tough problem to get around for most people.
If you're going B2C or B2SmallerWebsites then you're aiming for much less per sale, and therefore to get legs you'll need to be able to sell to a lot of them. So potential sales targets are all around. You won't be able to find them in sufficient volume to make a difference until after you have advertising turned on. But you still need to figure out your business. And talking to people in person is a great way to do that.
Also you should read http://www.paulgraham.com/startupideas.html. Pay close attention to the section labeled "Well". Odds are that, no matter how much you like your idea, you've chosen a poor idea to make a startup out of. Try to find a more focused variant to start with.
I spent a year work on a product based on some informal surveys and a lot of assumption. Luckily it doesn't cost me a lot to run it, so I can keep it going and continue plucking away, but while it was a good learning tool, I also learned that trying to find a niche would be much nicer to start with.
Thanks for the link.
If you're selling a horizontal product targeting customers where their existing technology they use could tip you off (e.g. companies that use Marketo and Mailchimp), LeadLander and BuiltWith are useful.
Once you get a list of target companies, the next trick is finding the right person to sell into. If you know their title, search Google like this:
site:linkedin.com "Company Name" "Title"
That works well since it lets you plow past Linkedin's limitations on searches outside your personal network.
Once you figure out your customer's company, name, and title, head over to email-format.com or data.com to look up the email format for the Company. With Rapportive for Gmail, you can take a few guesses and usually find the right person. Or read this post: http://www.distilled.net/blog/miscellaneous/find-almost-anyb...
Any unsolicited mail must have an unsubscribe link, even if you just email them once.
I thought it was a typo the first time you typed it, but I thought you should know when I saw it a second time.
The reason for this is really for mass emails. It really should not apply when you send a few hand-written emails to a few people.
On a side note, I used to contact potential clients years ago and then GoDaddy marked my domain as spam and made me cough up $199. The email wasn't even sent from the same domain (google godaddy spam scam). I moved off to NetworkSolutions. Anyone sending cold emails, please beware of this.
Customizing would be looking up information about their company, researching their competitors, talking to people who know them, figuring out what kind of food they like, and then crafting an email to them. That is not spam. That is hustle and marketing.
Especially the bit about "Shut up and listen to them". I had the same experience the other day at Start Up Weekend, where the best advice was when you listened to the mentors.
Thanks Dan.
There's a better approach than what the blog outlines - imagine that you have infinite wealth and begin to build what you personally want.
In most cases you will not be able to create the whole thing, but you can tackle a piece of the problem.
Example - you want a flying car. Imagine that you have 1 trillion dollars at your disposal. What would you do? Hire engineers. How would you hire them? What software is required. Look around, if it does not exist already, that's your first product. If it the hiring problem is already adequately solved, look for the next thing. How do those engineers communicate? etc.
These series of questions will lead to finding niches of opportunity, and it is always a software problem (organizing workflows).
Boy do I disagree. Face to face communication is richer, more contactful, and more satisfying. There's nothing wrong with any human being wanting that.
The problem with the thought experiment is that it assumes infinite knowledge. It's very hard to imagine what things would actually be like if you had a trillion dollars and you wanted to build a flying car. You can definitely come up with things that you think are likely, but I've found that often times you know much less than you think, and the actual problems are MUCH less obvious than they seem.
It's kind of like a non-engineer imagining what problems he would run in to if he had to build the Golden Gate Bridge including design and construction. You can definitely foresee certain things, e.g. you need a lot of materials, pens and paper, but there's still a ton of uncertainty and real gritty problems that only come out when you're in the thick of things.
Cost and time tradeoff and also what you get for closing and how often you have to close a sale.
You can send out more emails than you can postal letters.
You can do more postal letters than you can phone calls.
You can do more phone calls than you can in person cold calls. All depends of course on the product you are selling and the situation.
In any case going for the low hanging fruit to start (say sending an email to the IT manager at a university) doesn't mean you can't send a postal letter or a phone call or try to setup a meeting in person. But it makes sense in many (not all, many) situations to start with the easiest thing you can do and work your way up.
Example: I just closed a deal with a guy who has a reality show and all it took was an email which he replied to because he was interested in what I was selling. That's only one example I've obviously done the other things as well.
Lastly, negotiating in person also has it's drawbacks. Personally I prefer to negotiate by email in most cases. Depending on the other party and your own skills an in person does't always work out the way you would like.
Just another perspective.
I think email is helpful for starting conversations (via cold emails). But what I was trying to say is that at some point you need to actually start talking to people on the phone or in person. You can only learn so much from watching your Google Analytics graphs.
Appreciate the perspective, thanks for allowing me to clarify.
I think it totally depends on what you're selling, who you're selling it to, and many other factors.
For example, a guy emailed me one day about a domain I owned, and wanted to know if I'd part with it. None of the domain appraisal tools rated it as having any significant value and I wasn't emotionally invested in it, and had no specific plans for it, so I emailed him back and offered to sell it. He made an offer, I accepted, and told him to Paypal me the money, and then I'd transfer the domain to his GoDaddy account. No "escrow", no face to face meeting, no weird stuff, just email and two strangers trusting each other over $100.00 and a domain. And if F2F had been required, it would never have happened, since I was in NC and he was in Canada. So, totally an appropriate case for doing everything via email.
Now... our startup is in the business of complex, B2B enterprise software solutions which will sell for 10s (if not 100s) of thousands of dollars for a subscription. This stuff will need to integrate with existing legacy systems, and - if successful - will have big implications for the way people get work done. We are not going to get anywhere without some serious face time when it comes to selling this stuff.
Of course, those are two extremes, but I think there are a lot of cases where the higher bandwidth of face to face communication is still very valuable.
Well first let me tell you that means practically nothing.
Especially on the end of "no significant value". Although I've seen more errors with domains with value being said to have "no value" than I've seen with domains with clear value "having no value". (Can't off the top see if I mean "false negative or false positive" but you get the point.)
"He made an offer, I accepted"
In general, in any deal to sell there always needs to be some "kickback". Otherwise someone might feel they have left money on the table. General rule. Kickback doesn't have to be "more" or "less" money. It can be as simple as "ok but only if you..." (some non monetary item that makes the other party feel you are borderline on their offer).
"trusting each other over $100.00 and a domain"
Easy because the total amount at risk is $100. (Would you do the same if you had a domain and someone offered $20,000 for it and that was the value?).
"We are not going to get anywhere without some serious face time when it comes to selling this stuff."
Agree.
Let me know if anyone ever approaches you to sell any other domains.