The Power of Manual User Acquisition and the Dichotomy of Game Monetization

The Power of Manual User Acquisition and the Dichotomy of Game Monetization

Introduction:
Startups often find success because of the founders' ability to take manual actions that are not easily scalable. One common unscalable task for founders is the manual recruitment of users. This article explores the importance of manual user acquisition and its connection to the growth potential of startups. Additionally, it delves into the dichotomy of game monetization, drawing insights from a former social game developer.

The Power of Manual User Acquisition:
Founders cannot afford to wait for users to come to them; they must proactively seek out and recruit users. This initial effort may seem insignificant, but it is crucial for the compound growth of a startup. Inexperienced founders often underestimate the power of compound growth and the potential of their startup if they focus on the right strategies. By observing the earliest adopters and seeking out similar users, founders can cultivate a loyal user base and find ways to continually delight them.

Overcoming Shyness and Laziness:
Shyness and laziness are common reasons why founders resist manual user acquisition. However, for a startup to succeed, at least one founder, usually the CEO, must invest a significant amount of time in sales and marketing. By overcoming these personal barriers, founders can make extraordinary efforts to acquire users, which is essential for the startup's growth.

The Fear of Non-Scalability:
Founders often worry that manual user acquisition won't scale, but this fear is unfounded. Delighting customers at an individual level has a greater impact than anticipated. The key is to find ways to make any process scalable and to infuse a customer-centric culture within the organization. By doing so, founders can create an experience that is not only about the product but also about the satisfaction of being a user.

Narrow Market Focus:
Sometimes, the right strategy for startups is to focus on a deliberately narrow market. This approach, known as the "contained fire strategy," often emerges unconsciously when founders build products for themselves and their immediate network. Later, they realize that they can offer their product to a broader market. By catering to the needs and preferences of early adopters, startups can gain valuable insights that will help them refine their product and expand their user base.

Insights from a Former Social Game Developer:
According to a former social game developer, game monetization through mechanisms like "gacha" (randomized in-game purchases) taps into the human instinct of finding pleasure in uncertain outcomes. This monetization strategy hacks the human pleasure circuit by providing a prepayment of the pleasure experienced when a 30% success rate is achieved. However, the development of new game models and designs within the social game industry has become limited, shifting the focus away from creating truly innovative experiences.

Dichotomy between Social Games and Consumer Games:
The difference in approach between social games and consumer games lies in the ratio of the creator's intentions to the player's response. Social games are often developed based on the reactions of the players, while consumer games emphasize creativity and originality. Both types of games serve as tools to create responses from players and provide incentives, such as pleasure and enjoyment, which are fundamental to the human experience.

Actionable Advice:

1. Embrace manual user acquisition: Don't wait for users to come to you; actively seek them out. Invest time in sales and marketing to create initial momentum for your startup.

2. Cultivate a customer-centric culture: Delight individual customers and find ways to scale this approach. Infuse a customer-centric mindset throughout your organization to create a memorable user experience.

3. Explore niche markets: Consider focusing on a specific target market initially. By catering to the needs of early adopters, you can refine your product and expand your user base more effectively.

Conclusion:
Founders must be willing to do things that may not scale initially to ensure the growth and success of their startups. Manual user acquisition is a powerful strategy that should not be overlooked. By embracing this approach, cultivating a customer-centric culture, and exploring niche markets, founders can pave the way for their startup's long-term success.