Hello friends! In my journey as the co-founder and CEO of Openfor.co, and as a person who runs a startup accelerator the Founder Institute in a more challenging part of the world to build a startup which is Japan & Korea especially for foreigners, I've often been asked about the secrets of building a startup and you can get traction without product quickly, from literally from around the world! (I've counted recently, entrepreneurs from 20 countries). Today, I want to share a perspective that might challenge the traditional norms of entrepreneurship.
We've always been told that to make a mark in the startup world, you need a product. But what if I told you that's not always the case? What if I told you that the real magic lies in building a collaborative audience, monetizing that audience, and then, only then, focusing on the product? Yes, you heard that right you can get traction without product! It's a strategy we've embraced, and it's been a game-changer for us.
Note: This is a personalized version of our original article that we've published on our company blog, if you would like to learn more please also have a look: https://www.openfor.co/post/no-you-don-t-even-need-a-product-to-get-traction-build-a-collaborative-audience-and-monetize-first
A snapshot from one of my lecture on partnerships and collaborations
Why I'm obsessed with collabs? 😅
Collabs are one of the easiest ways of creating value: Collaborations, or "collabs" as they're popularly known, are a goldmine for value creation. When two or more entities come together, they bring their unique strengths, perspectives, and resources to the table. This synergy often results in innovative solutions, fresh content, and enhanced offerings that a single entity might struggle to achieve on its own. It's a mutual amplification of strengths, where the combined output often exceeds the sum of individual contributions.
Collabs force you to create/do/build something people "really" want: One of the inherent benefits of collaborations is the direct feedback loop they establish. When you collaborate, you're exposed to different audiences, stakeholders, and perspectives. This diversity ensures that any product, service, or content you co-create is constantly refined and aligned with genuine market needs. It's a reality check, pushing you to develop offerings that resonate with a broader audience and address real-world challenges.
Create value, and give, give, give and make them ask to do business with you: In today's saturated market, the key to standing out is not just offering a product or service but providing undeniable value. And the best way to do this is by adopting a giving mindset. Continuously offer insights, share knowledge, provide solutions, and go the extra mile for your audience without expecting immediate returns. This approach fosters trust and positions you as a genuine industry leader. Over time, this consistent value delivery creates a magnetic pull, where instead of you chasing clients, they actively seek to do business with you, recognizing the unparalleled value you bring.
Here is how it works 🤔 How to Get Traction Without Product?
🧩 1- Build a Collaborative Audience First
When we started, instead of diving straight into product development, we focused on building a community. A community of passionate individuals and businesses who believed in our vision. This wasn't just about potential customers; it was about creating a tribe, a family that actively engaged with our brand.
Take, for instance, the world of health and nutrition. Imagine building a platform that brings together health enthusiasts, nutrition experts, and fitness gurus. By offering valuable content and fostering genuine interactions, you're not just building an audience; you're building collaborators.
💸 2- Monetizing Before Product Development
With a thriving community in place, the next step was monetization. But this wasn't about pushing a product. It was about understanding the needs of our community and offering solutions that truly added value. Whether it was premium content, exclusive events, or personalized sessions, the focus was always on genuine value.
Moreover, partnerships played a crucial role. Collaborating with renowned brands and influencers not only expanded our reach but also opened up new revenue streams.
🧑💻 3- Then Comes the Product
With a monetized and engaged audience, product development became a more informed process. We had direct feedback, insights, and a clear understanding of what our community wanted. And when we finally launched our product, it was met with anticipation and excitement.
The essence of our approach has always been collaboration. It's about building relationships, not just with customers but with partners, influencers, and even competitors. It's about understanding that in collaboration, there's immense potential for mutual growth.
Pros and Cons of Get Traction Without Product
Like every strategy, there are pros and cons. On the upside, we were able to validate market demand, secure early revenue streams, and build strong customer relationships. On the flip side, managing expectations, balancing focus, and resource allocation were challenges we had to navigate.
But with the right strategy, transparency, and a genuine commitment to value, we turned these challenges into opportunities.
📈 Your Path to Traction
If you're an entrepreneur, I urge you to consider this approach. Start by understanding your audience, offer genuine value, collaborate, and then focus on the product. It's a journey that requires patience, but the rewards are well worth it.
In conclusion, as we've learned at our OpenFor.Co bootcamp, you don't need a product to gain traction; you need a collaborative audience. It's a lesson I've lived by, and I invite you to join us on this exciting journey.
To greater collaboration and success, cheers everyone!
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