Be an Anti-Entrepreneur – VarageSale CEO on B2C Markets (Part 3)
TORONTO: During Techweek Toronto Growth Summit 2017, Andrew Sider, CEO of VarageSale, shared his views on the short and long-term realities of B2C marketplaces and what future opportunities lie in the space. In Part 3 of this 3 part series, Sider shares his hard-earned lessons for new startups.
“Think hard about why users have to care 10 times more about you than the next best alternative.” – Andrew Sider, CEO, VarageSale.
Following his insights about reducing friction in the marketplace (Part I) and his strategy of thinking big and starting small (Part II), Andrew Sider talked about the practical lessons he would like to pass on to budding entrepreneurs.
“Think hard about why users have to care 10 times more about you than the next best alternative,” Sider said. “If you don’t invest time in thinking about this, you won’t stand a chance to acquire a single user. Once you have that figured out, go raise money and with that money too, you want to think long and hard about acquisition.”
For successful customer acquisition, he said the trick is to fail fast and fail cheap. “Growth hacking for a large part is dead. I recommend starting with one channel – give it a test budget and in some months, get really good at it. However, if you don’t figure it out in two or three months, it’s a good time to switch.”
Recognizing that this approach can scatter the focus of startups, Sider pointed to the upside. “It’s the scientific approach and a lot of stuff gets tested.”
Finally, Sider advised to focus on the upcoming advertising platforms. “We are seeing chat emerge as a platform both for absolute volumes and growth rate. We don’t know yet how VR is going to be as a future platform. As a marketing group in your team, you need to reserve some budget and mind-space to think about what is the next best channel to tap, the channel that you can stand out on.”
To see the full video for Techweek Toronto Growth Summit 2017: B2C Customer Acquisition, go here.