The Art of Creating Sticky Products and Nurturing Advisor Relationships

The Art of Creating Sticky Products and Nurturing Advisor Relationships

Introduction:
In the world of business and technology, there are two key aspects that play a crucial role in the success of a product or company - creating a sticky product and nurturing advisor relationships. This article explores the strategies behind creating a sticky product like Facebook and Evernote, as well as the best practices for establishing and maintaining fruitful relationships with advisors.

Creating a Sticky Product:
Sticky products are those that not only engage users but also become an integral part of their lives. They use the data generated by users to continuously enhance the user experience, making it increasingly difficult for users to leave. This is achieved through accruing benefits and mounting loss.

Accruing benefits refer to the notion that the more a user engages with a product, the better it gets. Leveraging both explicit and implicit user actions can help create strong accruing benefits. For example, a social media platform like Facebook may provide personalized recommendations based on a user's interactions and preferences, making the experience more valuable with each use.

On the other hand, mounting loss occurs when a product becomes deeply ingrained in a user's life, forming part of their identity or accumulating value. Losing this investment or dependency becomes a significant deterrent for users to switch to an alternative product. Consider the example of a content creator on a platform like Instagram who has built a large following. Leaving the platform would mean losing the invested time and effort in growing their followers, creating mounting loss.

Nurturing Advisor Relationships:
Advisors can be instrumental in the success of a company, providing guidance, expertise, and connections. However, it is essential to approach advisor relationships strategically to ensure they add value rather than becoming distractions or liabilities.

When selecting advisors, it is crucial to treat the process with the same scrutiny as choosing a co-founder. Advisors should complement the founder's skill set and bring unique perspectives to the table. Additionally, it can be beneficial to evaluate whether potential advisors would be willing to invest in the company directly instead of receiving equity. This not only demonstrates their commitment but also sends a positive signal to future investors.

Different types of advisors can bring varying benefits. Some advisors excel at providing industry insights and acting as a sounding board, while others may be willing to invest directly in the company or help with future financing rounds. It is important to clearly define the advisor's role and compensation, whether through equity or other forms, and formalize the relationship with a signed agreement.

Maintaining effective communication with advisors is crucial. Founders should take the lead in driving the cadence of communication, setting agendas, and managing expectations. Regular check-ins and updates ensure that both parties remain aligned and on track towards shared goals.

Actionable Advice:

1. Clearly define what you want in an advisor and seek individuals who complement your weaknesses.
2. Consider whether potential advisors would be willing to invest directly in the company as a sign of commitment.
3. Establish clear communication expectations and document the advisor relationship with a signed agreement.

Conclusion:
Creating a sticky product relies on leveraging accruing benefits and mounting loss to engage users and make it difficult for them to leave. Similarly, nurturing advisor relationships requires strategic selection, clear expectations, and effective communication. By implementing these strategies and seeking valuable advisor insights, entrepreneurs can increase the chances of building successful products and companies. Remember, the path to success lies in creating products that users cannot live without and forging relationships that bring expertise and guidance to the table.