The views expressed by the business participants are their own.
Investors like to say that “primary founders focus on product, while secondary founders focus on distribution.” But what does that really mean? And how does it affect the success – or failure – of business?
Let’s break it down. Early adopters often love their product. They spend endless hours developing every feature and executing every line of code, believing that if they do something amazing, customers will flock to them. And while that assumption is wrong, it’s only part of the equation. The truth is that even the best product in the world will struggle without an effective strategy to get it in front of the right audience. This is where seasoned founders shift their focus – away from over product and towards distribution.
When we think of success stories like Dropbox or Slack, it’s tempting to think that product flywheels are a sacred framework. Dropbox, for example, used its viral growth model, growing 3,900% in 15 months by encouraging users to invite their friends to get more storage space.
Slack created a product that became very important to teams – from 50,000 daily users to one million in 2015 – leading to rapid adoption across businesses around the world. But these companies are different. For every Dropbox or Slack, there are countless startups that have developed great products but failed to build the distribution needed to reach their target market.
Related: 4 Steps to Becoming a Marketing-Focused Founder (And Why It Matters)
Why focusing only on the product is dangerous
Obsession with building the perfect product often blinds innovators to a harsh reality: Customer acquisition doesn’t just happen. You can create the most revolutionary product in your industry, but if no one knows about it, it doesn’t matter. Startup graveyards are full of products that failed because of poor design or poor performance; they failed because they never thought about how to reach a sustainable customer base.
SaaS unicorns make headlines because they’ve cracked the code, but these types of viral growth models are incredibly rare. It is dangerous to rely on the hope that a “product flywheel” will propel your business to success. For many companies, especially those in niche or highly competitive markets, growth will not come from product-led strategies alone. And that’s where sales-led, distribution-focused companies gain a significant edge.
Why sales-led companies are strong
Marketing-led companies understand that revenue doesn’t just come – it’s created by a well-thought-out, effective distribution strategy. Focusing on sales and distribution creates a stable, predictable revenue stream. This approach is especially important in turbulent economic times, when customer acquisition can be challenging and budgets are tight. Sales-led organizations create a foundation of trust with customers, build long-term relationships and foster customer loyalty.
Companies that prioritize distribution don’t just rely on one channel or a lucky break; they develop a diverse network of customers, partners and resellers that can keep the business growing, even when the market changes. They don’t bet everything on one virus minute. Instead, they build a sustainable 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 looking for new customers because they have already created a channel of loyal customers and partners to continue working.
Take a company like HubSpot, which didn’t just rely on product features to fuel growth. They build an entire ecosystem of resources, certifications and social events that keep customers engaged. By fostering these long-term relationships and creating a strong distribution network, HubSpot ensured that it was the go-to brand for inbound marketing tools, as competition grew.
Related: Your Service Must Go Beyond Sales. 4 Ways to Build Long Lasting Relationships with Distributors and Dealers
Key steps for business leaders
For business leaders, the takeaway is clear: Paying attention to distribution can have a bigger impact than perfecting every inch of your product. A product that is “good enough” but well distributed will often outperform a “perfect” product that no one knows about. And distribution isn’t just about pushing a product out into the world; it’s about building a reliable product that customers will want to deal with again and again.
To build a sales-led, distribution-focused business, you need to:
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Identify and implement strategic channels: Whether it’s through partnerships, resale 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 relationships are more important than quick wins. A customer who trusts your product will not only keep coming back but will also recommend you to their networks.
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Create a moat with distribution: Build a network of customers, vendors and partners who can support you when things get tough. Relying solely on viral growth or product features can be a risky gamble in unpredictable markets.
At NewCampus, we take 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 always remember where they are.
Instead of thinking that our product will “sell itself,” we put the work into building a community that supports and grows our mission. We are constantly engaging with our network, building strategic partnerships with other edtech organizations and focusing on building relationships with students. This approach doesn’t just create quick opportunities; it establishes the foundation that keeps our product relevant and trusted over time.
Related: 8 Ways to Make Sure You’re Selling Solutions Through the Right Channel
I’m looking forward
In a world where thousands of startups are pouring everything into their products, the companies that win are the ones that focus on getting their product into the hands of the right people. Sales-led, distribution-oriented businesses have a level of stability and resilience that product-oriented companies often lack.
In today’s market, the companies that can successfully combine the two will be the ones that grow, scale and stand the test of time. Embrace distribution as the foundation of your strategy, invest in long-term relationships, and create a network of advocates. Profit is not just growth; it is sustainability in an ever-changing world.
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