Wednesday, 16 July 2008
instead of running ads - improve your product
I was talking to a friend who runs a startup technology company. A web2.0 application, which frankly needs some work - both in its functionality and look and feel.
He's a wealthy guy and he knows a thing or too about business but he's never run a tech startup. We got talking about his marketing strategy and he told me in some detail the number of people he had working on this project and that, what he would be spending on PPC, this much on below the line etc.
He was making the classic start up error. Spending on marketing instead of your product. Having got out of beta, it is so tempting to start spending on "marketing" - the analytics suddenly look good, the investors are pleased something is happening
Takes a lot of courage to continue to look honestly at your product, your technical development plans and your internal systems. To listen to your customers and address their concerns.
Money spent on developing your product is never wasted. Cash spent on old skool marketing too early often makes the directors and shareholders feel better in the short term but rarely produces the long term users and revenue it was designed to.