Why an amazing product isn’t enough to make a startup successful

Investors love to say that “first-time founders focus on product, while second-time founders focus on distribution.” But what does this really mean? And what impact does this have on the success – or failure – of a company?

Let’s break it down. First-time founders often fall in love with their product. They spend infinite hours developing every feature and perfecting every line of code, believing that if they create something amazing, customers will come to them. And while this manner of considering isn’t flawed, it’s only a part of the equation. The reality is that even the best product in the world will struggle without an effective plan to present it to the right audience. This is where experienced founders shift their focus from product obsession to distribution.

When we think about success stories like Dropbox and Slack, it’s tempting to assume that product flywheels are the holy grail. Dropbox, for example, has made the most of its capabilities virus growth modelwhich represents a 3,900% increase in 15 months by encouraging users to invite friends in exchange for more space for storing.

Slack created a product that has grow to be essential for teams — from 50,000 day by day users to 1 million in 2015 — leading to rapid adoption in corporations around the world. But these corporations are outliers. For every Dropbox or Slack, there are countless startups that have developed great products but have failed to build the distribution mandatory to reach their goal market.

Why focusing solely on the product is dangerous

The obsession with building the perfect product often blinds founders to a harsh reality: customer acquisition doesn’t occur on its own. You can create the most revolutionary product in your industry, but if no one knows about it, it won’t matter. The startup graveyard is stuffed with products that failed due to poor design or poor functionality; they failed because they never discovered how to reach a sustainable customer base.

SaaS unicorns make headlines because cracked the codebut a majority of these virus growth patterns are extremely rare. Relying on the hope that the “product flywheel” will lead your organization to success is dangerous. For most corporations, especially those operating in area of interest or highly competitive markets, growth is not going to come solely from product-based strategies. And this is where sales and distribution-oriented corporations gain a critical advantage.

Why sales-led corporations are more resilient

Sales-led corporations understand that revenue doesn’t just occur – it’s generated through a thoughtful, proactive approach to distribution. Focusing on sales and distribution creates a regular, predictable revenue stream. This approach is especially essential in turbulent economic times, when customer acquisition might be a challenge and budgets are tight. Sales-led organizations create a foundation of trust among customers, build long-term relationships and support customer loyalty.

Companies that prioritize distribution don’t rely on just one channel or lucky event; they develop a diverse network of consumers, partners and vendors who can keep the business growing at the same time as the market changes. They don’t stake all the things on one viral moment. Instead, they create a sustainable network of people that trust their brand and want to buy from it. When times get tough, these corporations don’t just survive – they thrive. They don’t have to look for latest customers because they have already built a moat of loyal customers and partners that may help them stay in business.

Take for example a company like HubSpot that did not rely solely on product features to drive growth. They built an entire ecosystem resources, certifications and community events that kept customers engaged. By fostering these long-term relationships and creating a solid distribution network, HubSpot has ensured that it is the brand of selection for inbound marketing tools, even in the face of accelerating competition.

Key takeaways for business leaders

For business leaders, the lesson is clear: Obsessing with distribution can have a greater impact than perfecting every inch of the product. A product that is “good enough” but well distributed will often perform higher than a “perfect” product that no one knows about. Distribution isn’t just about getting your product out into the world; it’s about building a trusted brand that customers will want to engage with again and again.

To build a business based on sales and distribution, you could:

1. Identify and leverage strategic channels: : Whether it’s partnerships, resellers, or digital channels, select the ones that make the most sense for your goal market and double your sales.

2. Invest in relationships: : Long-term customer relationships are more worthwhile than quick wins. A customer who trusts your brand is not going to only return, but will even support you in their networks.

3. Create a moat with distribution: : Build a network of consumers, sellers and partners who will support you even in difficult situations. Relying solely on viral growth or product characteristics might be a dangerous endeavor in unpredictable markets.

At NewCampus, we have taken these principles to heart. We understand that product innovation is essential, but we have built a company that prioritizes distribution and customer relationships to fuel our growth. We’re focused on building a solid network of edtech corporations and a vibrant community to be sure that even if someone isn’t ready to buy from us today, we’ll be front and center when they are.

Instead of assuming that our product will “sell itself,” we put in the work to create a community that supports and strengthens our mission. We continually engage with our network, forming strategic partnerships with other edtech organizations and focusing on building relationships with students. This approach not only creates immediate opportunities; establishes a foundation that keeps our brand relevant and trusted over time.

Waiting for something

In a world where hundreds of startups put all the things into their products, the corporations that win are people who focus on getting their product into the hands of the right people. Sales and distribution-oriented corporations have the stability and resilience that product-obsessed corporations often lack.

In today’s marketplace, the corporations that successfully mix each are the ones that grow, scale, and stand the test of time. Make distribution the cornerstone of your strategy, invest in long-term relationships and build a network of supporters. The reward is not only growth; is sustainable development in a world that is continuously changing.