A Product Market Fit Show | Startup Podcast for Founders
00:48:24 · Dan Novaes
And we found like newsletters as being one of the best channels for investors because people that read newsletters they like to read content they like to read news you can actually talk to someone in a paragraph or two it feels like a way more native ad and so for us we really utilize channels like that and one of the unlocks that we also figured out and this is not purposeful it just ended up what's happening when we did the demographics of people that were investing in Mode and you know think about in my business like there's a lot of aspects to it the average investor 80% of them were over the age of 55 and not our target market at all so understanding that just because you have a product that caters to a certain audience does not mean that the person investing in that product will be that and so you need to talk to that retail investor in a way that's kind of like more simplified than what you would talk to a VC but also understand that they may not be your consumer but they need to understand the opportunity the market opportunity that you're presenting and once we figure that out like we just look at it in the same way we look at user acquisition like the cost for me to acquire an investor is $1,000 the average investor you invest by $1,000 that's a 5 to 1 return a percentage of those investors reinvest it works very similar to SaaS cohorts where you then get a bigger LTV and so I think that that was like the biggest unlock of just how we approached it is just the same way you would approach it as a consumer-centric founder
00:49:39 · Pablo Srugo, Dan Novaes
[00:49:39] S1: Perfect well Dan let's stop it there I'll ask the one last question we always end on what would be like your top advice for an early stage founder? [00:49:44] S0: Top advice if I was starting again 10 years ago I think I would be focusing more on buying businesses versus starting them 0 to 1 I know this whole show is about product market fit but product market fit is really hard it's probably the hardest thing and I think that there's a lot of great apps out there that basically people don't have optimized and they've just kind of like let it die but it already has a foundation and if you have a great product mind you can go to that product amplify it and grow it quite significantly and the valuations are at the lowest they've been because everyone's scared of AI and so it's a great time if you have an opportunity to I think stack these businesses stack cash flow and grow and that's kind of like where I would focus my [00:50:24] S1: Perfect well Dan thanks so much for jumping on the show man it's been great [00:50:27] S0: for sure dude thank you for having me
00:50:27 · Dan Novaes, Pablo Srugo
[00:50:27] S0: for sure dude thank you for having me [00:50:28] S1: so picture this it's months from now years from now and one of your founder friends a really close founder friends of yours guess what their startup went bankrupt and it turns out if you had just shared the product market fit show with them they would have learned everything they needed to to find product market fit and to create a huge success but instead their startup has completely failed you have blood on your hands don't let that happen you don't want to live like that it is terrible so do what you need to do tell them about the show send it to them put it on whatsapp put it on slack put it where you need to put it just make sure they know about it and they check it out