Go-To-Market for Geeks How to fake it ‘til you make it October 16, 2009

What is Go-To-Market? The B-School Answer:

The B-School Answer:

The Problem for Startups You may not have the right Product You have no idea how to Price it You don’t know where to Place it You have no money to Promote it

You may not have the right Product

You have no idea how to Price it

You don’t know where to Place it

You have no money to Promote it

Fight One Battle At A Time

Product: Ship Early, Ship Often Get your product in front of people as quickly and as often as possible Friends & Family Early adopters If you’re charging money, start right away eBay Craigslist

Get your product in front of people as quickly and as often as possible

Friends & Family

Early adopters

If you’re charging money, start right away

eBay

Craigslist

For More Detail: Eric Ries “ The minimum viable product is that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort.” http://www.startuplessonslearned.com/

“ The minimum viable product is that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort.”

http://www.startuplessonslearned.com/

Price: Necessary, Not Sufficient Pricing can hurt the business, but rarely helps (at least for startups) Price based on value, not cost Price based on how the market likes to buy Purchase vs. License vs. Subscription Unit pricing vs. Flat rate It’s always easier to reduce prices For self-service products, always test eBay, Craigslist, AdWords

Pricing can hurt the business, but rarely helps (at least for startups)

Price based on value, not cost

Price based on how the market likes to buy

Purchase vs. License vs. Subscription

Unit pricing vs. Flat rate

It’s always easier to reduce prices

For self-service products, always test

eBay, Craigslist, AdWords

Place: Don’t Be Afraid To Sell

You Can’t Avoid Sales Distribution Catch-22 The channel only sells what’s already selling The Underpants Gnomes Principle Salesmen can’t tell you what to sell (and they can’t sell what they can’t understand) Talking To Customers Is A Good Thing Sale/No Sale doesn’t provide enough info Customer contact is too valuable to abdicate

Distribution Catch-22

The channel only sells what’s already selling

The Underpants Gnomes Principle

Salesmen can’t tell you what to sell

(and they can’t sell what they can’t understand)

Talking To Customers Is A Good Thing

Sale/No Sale doesn’t provide enough info

Customer contact is too valuable to abdicate

Founders Must Learn To Sell Talk to real potential customers Understand their need *before* you try to solve it “ What problem are you trying to solve?” “ What are you doing about it right now?” “ What would you like to happen?” Demonstrate the product and listen to their feedback (instead of arguing) Ask for the order!

Talk to real potential customers

Understand their need *before* you try to solve it

“ What problem are you trying to solve?”

“ What are you doing about it right now?”

“ What would you like to happen?”

Demonstrate the product and listen to their feedback (instead of arguing)

Ask for the order!

The Three Types of Sales Field Sales (“The Bag Man”) 6-figure deals, 6-month sales cycles In-person wining & dining On-site pilots & sales engineers Telesales (“The Boiler Room”) 4- or 5-figure deals, 0-3 month sales cycles WebEx demos & time-based trials Direct Marketing

Field Sales (“The Bag Man”)

6-figure deals, 6-month sales cycles

In-person wining & dining

On-site pilots & sales engineers

Telesales (“The Boiler Room”)

4- or 5-figure deals, 0-3 month sales cycles

WebEx demos & time-based trials

Direct Marketing

Promotion: TechCrunch is Not a Strategy

Money Is Not The Answer If you tell a VC, “We need the money for marketing,” you won’t get the money. Exception: 1999 You have to prove the model before you ask for money Exception: Mark Andreesen

If you tell a VC, “We need the money for marketing,” you won’t get the money.

Exception: 1999

You have to prove the model before you ask for money

Exception: Mark Andreesen

Promotion On A Budget The old way: $15K/month for a PR firm Brief analysts, brief press, wire release It’s all about relationships & unwritten rules The new way: Do your own PR Friend/Retweet prominent bloggers, speak at conferences It’s all about relationships & unwritten rules

The old way:

$15K/month for a PR firm

Brief analysts, brief press, wire release

It’s all about relationships & unwritten rules

The new way:

Do your own PR

Friend/Retweet prominent bloggers, speak at conferences

It’s all about relationships & unwritten rules

Turn Weakness Into Strength You’re unknown Give folks the chance to “discover” you and take credit You’re playing David & Goliath Use “retail politics” to reinforce the friendly, accessible nature of your company Blogs, Twitter, Facebook are your friends You don’t know what you’re doing Ask for advice and get people to buy in

You’re unknown

Give folks the chance to “discover” you and take credit

You’re playing David & Goliath

Use “retail politics” to reinforce the friendly, accessible nature of your company

Blogs, Twitter, Facebook are your friends

You don’t know what you’re doing

Ask for advice and get people to buy in

Last Thoughts Don’t strategize, iterate! There is no magic formula and every business is different. Product alone isn’t enough You can more of this than you think… … But don’t get too cocky—the market is smarter than all of us.

Don’t strategize, iterate!

There is no magic formula and every business is different.

Product alone isn’t enough

You can more of this than you think…

… But don’t get too cocky—the market is smarter than all of us.

How To Reach Chris Chris Yeh [email_address] http://chrisyeh.blogspot.com http://www.asktheharvardmba.com http://twitter.com/chrisyeh

Chris Yeh

[email_address]

http://chrisyeh.blogspot.com

http://www.asktheharvardmba.com

http://twitter.com/chrisyeh