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Investors like to say that “first-time founders focus on product, while second-time founders focus on delivery.” But what does it actually mean? And how does it affect the success – or failure – of a business?
Let's break it down. First-time founders often fall in love with their product. They spend endless hours developing every feature and perfecting every line of code, believing that if they create something amazing, customers will come to them. And while this mindset isn't wrong, it is only part of the equation. The reality is that even the best product in the world will struggle without an effective plan to get it in front of the right audience. This is where experienced founders shift their focus—away from product obsession and toward distribution.
When we think of success stories like Dropbox or Slack, it's tempting to assume that product flyers are the holy grail. Dropbox, for example, used it viral growth modelgrowing 3,900% in 15 months by encouraging users to invite their friends in exchange for more storage space.
Slack created a product that it became indispensable for the teams – from 50,000 daily users to 1 million in 2015 – leading to rapid adoption across businesses worldwide. But these companies are external. For every Dropbox or Slack, there are countless startups that developed great products but failed to build the distribution necessary to reach their target market.
Related: 4 Steps to Becoming a Sales-Focused Founder (and Why It Matters)
Why focusing only on the product is dangerous
The obsession with building the perfect product often blinds founders to a harsh reality: Customer acquisition it doesn't just happen. You can create the most revolutionary product in your industry, but if no one knows about it, it won't matter. The startup graveyard is littered with products that didn't fail due to poor design or poor functionality; they failed because they never figured out how to achieve a steady customer base.
SaaS unicorns make headlines because they has cracked the codebut these types of viral growth patterns are extremely rare. It is dangerous to rely on the hope that a “product flyer” will lead your business to success. For most companies, especially those in niche or highly competitive markets, growth will not come from product-led strategies alone. And this is where sales-driven, distribution-focused companies gain a critical advantage.
Why sales-led companies are more resilient
Sales led companies understand that revenue doesn't just show up – it's generated by a well-thought-out and proactive approach to distribution. Focusing on sales and distribution creates a stable and predictable revenue stream. This approach is especially important in turbulent economic times, where customer acquisition can be challenging and budgets are tight. Sales-led organizations establish a foundation of trust with customers, build long-term relationships and foster customer loyalty.
Companies that prioritize distribution don't just rely on a channel or a lucky break; they develop a diverse network of customers, partners and resellers who can keep the business growing, even when the market changes. They're not betting everything on a single viral moment. Instead, they are building a stable network of people who trust their brand and want to buy from them. When times get tough, these companies don't just survive—they thrive. They are not left scrambling for new customers because they have already built a moat of loyal customers and partners to keep them going.
Take a company like HubSpot, which didn't just rely on product features to drive growth. they built an entire ecosystem of resources, certifications and community events that kept customers engaged. By fostering these long-term relationships and building a strong distribution network, HubSpot ensured they were the go-to brand for inbound marketing tools, even as the competition grew.
Key relationships for business leaders
For business leaders, the takeaway is clear: Obsessing over delivery can be more impactful than perfecting every inch of your product. A product that is “good enough” but well distributed will often be better than a “perfect” product that no one knows about. And distribution isn't just about getting a product out into the world; it's about building a trusted brand that customers will want to engage with repeatedly.
To build a sales-led, distribution-focused business, you need to:
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Identify and leverage strategic channels: Whether through partnerships, resellers or digital channels, choose the ones that make the most sense for your target market and double down.
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Invest in relationships: Long term customer relations are more valuable than quick wins. A customer who trusts your brand will not only return, but advocate for you in their networks.
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Create a distribution gap: Build a network of customers, resellers and partners who can support you even when the going gets tough. Relying solely on viral growth or product features can be a risky game in unpredictable markets.
At NewCampus, we have taken these principles to heart. We understand that product innovation is important, but we have built a business that prioritizes distribution and customer relationships to drive our growth. We focus on building a strong network of edtech companies and a vibrant community to ensure that, even if someone isn't ready to buy from us today, we're top of mind when they are.
Instead of assuming that our product will “sell itself,” we put in the work creating a community that supports and reinforces our mission. We are constantly engaging with our network, creating strategic partnerships with other edtech organizations and focusing on building relationships with learners. This approach doesn't just create immediate opportunities; it creates a foundation that keeps our brand relevant and reliable over time.
Related: 8 Ways to Make Sure You're Selling Solutions Through the Right Channel
Waiting
In a world where thousands of startups throw everything at their products, the companies that win are the ones that focus on getting their product into the hands of the right people. Sales driven, distribution focused businesses have a level of stability and resilience that product-obsessed companies often lack.
In today's market, the companies that can successfully navigate both will be the ones that grow, scale, and stand the test of time. Embrace distribution as a cornerstone of your strategy, invest in long-term relationships and build a network of advocates. The reward is not just growth; it is stability in a world that is constantly changing.