The Key to Successful Startup Growth: Finding the Right Investors and Navigating the Law of Shitty Clickthroughs

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Sep 01, 2023

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The Key to Successful Startup Growth: Finding the Right Investors and Navigating the Law of Shitty Clickthroughs

Introduction:

Building a successful startup is no easy feat. It requires a combination of finding the right product-market fit, scaling effectively, and implementing successful marketing strategies. In this article, we will explore the importance of finding the right investors as team members, the Law of Shitty Clickthroughs, and ways to discover untapped marketing channels for long-term growth.

Finding the Right Investors:

When it comes to securing funding for your startup, it's crucial to find investors who can provide more than just capital. These investors should act as team members, contributing their expertise and experience in product-market fit (PMF) and scaling. By choosing investors who have a track record of helping companies achieve PMF and scale successfully, you can minimize mistakes and increase your chances of long-term success.

To find the right investors, it's important to focus on the partner leading the deal rather than getting distracted by the firm's reputation. The partner's involvement can contribute up to 90% of the value you receive from the firm. Engage with venture investors on platforms like Twitter and Clubhouse, follow their insights on Medium, and establish a strong presence. Showcasing your dedication and knowledge can attract the attention of potential investors who can help take your startup to the next level.

The Law of Shitty Clickthroughs:

Marketing plays a crucial role in driving engagement and growth for startups. However, even the most effective marketing strategies experience a decline in clickthrough rates over time. This phenomenon is known as the Law of Shitty Clickthroughs. It states that all marketing strategies, no matter how successful initially, eventually result in declining clickthrough rates.

Customers respond to novelty, and this novelty is a key driver of engagement in marketing. Keeping the same ad creative for an extended period leads to diminishing returns. Humans are wired to seek novelty, but they are also pattern-recognition machines. Therefore, any product that enters the market first enjoys a window of high marketing performance until competition arises.

Scaling Challenges and the Technology Adoption Lifecycle:

As a startup scales, it faces the challenge of attracting less qualified customers. The Technology Adoption Lifecycle (TAL) provides insights into the market's behavior. Early adopters actively seek out innovative products, but the mainstream market requires more persuasion and proof of problem-solving capabilities.

To overcome the scaling challenges, it's essential to adopt a nomad strategy. Continuously develop new creative marketing approaches, explore new publishers, and experiment with different strategies. Incremental improvements can be achieved through these efforts. However, the real solution lies in discovering untapped marketing channels that are still uncontested.

Discovering Untapped Marketing Channels:

While traditional online advertising methods like banners, search, and email remain important, it's crucial to identify and leverage the next untapped marketing channel. Being an early adopter of emerging marketing platforms or strategies can provide a significant advantage. By staying ahead of the competition and capturing the attention of customers in a new space, you can achieve sustained growth and maintain high marketing performance.

Actionable Advice:

  • 1. Prioritize finding investors who have a proven track record in helping startups achieve product-market fit and scale successfully. Their expertise and guidance can significantly impact your startup's success.
  • 2. Embrace the Law of Shitty Clickthroughs by constantly innovating and experimenting with new marketing strategies. Seek novelty and stay ahead of the competition to maintain high marketing performance.
  • 3. Continuously explore untapped marketing channels to find new avenues for growth. Being an early adopter can give you a competitive advantage and help you reach a wider audience.

Conclusion:

Building a successful startup requires a combination of finding the right investors, understanding the Law of Shitty Clickthroughs, and discovering untapped marketing channels. By prioritizing the partnership with investors who can contribute to product-market fit and scaling, continuously innovating in marketing strategies, and being an early adopter of emerging platforms, startups can increase their chances of achieving long-term growth and success.

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