Positioning at different stages of PMF: Substack: Empire of Narratives

Positioning at different stages of PMF: Substack: Empire of Narratives

In the world of startups and business, positioning is crucial for success. It helps clarify your product's role and relevance in a specific category, allowing you to own a space in your customer's mind. However, positioning is not a one-time thing. It evolves and changes as your product and market mature. Let's explore how positioning works at different stages of product-market fit (PMF) and how Substack, a popular newsletter platform, has successfully positioned itself as an empire of narratives.

At the early stages of PMF, positioning is about making choices and clarifying your product and go-to-market strategy. It's important to stay flexible and open to market input, as your initial positioning may not resonate with your target customers. This stage is about figuring out who you want to be and who you don't want to be. Substack's founders understood this concept when they hypothesized that writers lacked the business sense and tech-savviness to monetize their content effectively. They saw an opportunity to disrupt the traditional media business model by offering a simple way for writers to solicit and manage subscriptions. This initial positioning paved the way for Substack to become a platform where independent publications could collaborate and grow together.

As your product gains traction and expands, you may encounter challenges with positioning. Your product might be used for different use cases, but you're not seeing broader adoption. Your sales team may struggle with expansion, or your marketing efforts to expand fail. These symptoms indicate that you're stuck in a positioning wedge. To overcome this, it's essential to reassess your product's fit with your current persona and understand how their limitations impact adoption. Refocusing, rebuilding, and repositioning quickly is crucial to avoid anchoring too deeply in the wedge and making it your market. Substack's rapid growth and expansion can be attributed to its ability to adapt and refine its positioning to meet the evolving needs of writers and readers.

Sometimes, startups make the mistake of scaling their go-to-market (GTM) approach without getting their product positioning right. This can result in a mismatch between the product's strengths and the GTM strategy. It's important to align your GTM strategy with your product's capabilities. For example, if your product is complex and challenging to self-onboard, leaning into a product-led growth (PLG) motion may not be the best approach. Substack recognized the importance of aligning its GTM strategy with the product's strengths. They understood that email, publishing, and subscription management were not easy tasks for writers. By focusing on providing a seamless and user-friendly experience for writers and readers, Substack positioned itself as a valuable tool and ecosystem for content creators.

Before we conclude, let's discuss three actionable pieces of advice for startups and businesses:

1. Stay flexible and open to market input: Don't get too attached to your early positioning. Listen to your customers and be willing to adapt and refine your positioning as needed.

2. Assess the fit between your product and target persona: Understand how your product meets the needs of your current persona. Identify any functional limitations that may impact adoption and address them accordingly.

3. Align your GTM strategy with your product's strengths: Ensure that your GTM approach complements your product's capabilities. Don't throw money at the problem; instead, focus on aligning your strategy with what works best for your product.

In conclusion, positioning is a dynamic process that evolves as your product and market mature. It's crucial to stay flexible, reassess your fit with the target persona, and align your GTM strategy with your product's strengths. Substack's success as an empire of narratives is a testament to the power of positioning and the importance of adapting and refining your approach to meet the evolving needs of your customers. By understanding these principles, startups and businesses can position themselves for growth and success in the ever-changing business landscape.