HOW A BOOTSTRAPPED STARTUP OUT MARKETED A MULTIMILLION DOLLAR COMPANY
The chances are you do not have plenty of cash. And that is okay. So how does one compete with these multimillion, if not multibillion, dollar companies out there? Hey everyone, today I’m getting to teach you ways bootstrap startup out marketed a multimillion dollar company. One among the businesses I created is named ABC. I not work there but you’ve probably heard of it. If not, you’ll check it out. Once I was there I raised many dollars. That company raised anywhere between $15 and $20 million dollars. That’s tons of money. We had a competitor called Mixpanel. Does one know what the difference between Mixpanel and us was? They raised tons less money once they were beginning and their product didn’t really have any innovation. When we started off we created a replacement product for our market. Mixpanel took our exact designs, they copied them, they released them, they out marketed us, they raised little or no to no money and that they ended up becoming worth more money? What proportion more? Well at one point they were worth over $800 million consistent with TechCrunch.com and that we weren’t even worth $100 million. How can that be once we get far more traffic than them, right? If you attend Alexa.com, our Alexa rank on Kissmetrics.com is much better than Mixpanel. And therefore the blog on abc.com gets over 1,000,000 unique visitors a month. So how is it? They decided to travel the freemium route. They took our product, copied the designs and be like, “You know what? It doesn’t matter if our product is best or worse than yours, we’re just getting to take it and release a free version bent the market.” Nothing beats cheaper price.
If someone’s charging tons of cash and you’ll create the precise replica of that product or service and release a free version of it, albeit it doesn’t have all the features, you’ll crush your competitors. Why? Because people are price sensitive. And nobody wants to pay thousands of dollars for something that they will get for free of charge. And when Mixpanel released that product for free of charge they said, “Hey, if you’re on the free plan you would like to place a Mixpanel badge on your website showing that we offer you analytics.” And tons of startups were like, and corporations even, they’re like, “Okay, sure. We’ll put your badge if you give us your product for free of charge during a limited version.” That’s how they grew. So if you would like to grow your company faster you do not necessarily need to create a far better product or service than these big, multimillion dollar companies. Just find out how you’ll offer more for less money or some of your product or service for free of charge. If you are doing that you’re going to grow really fast and these big companies haven’t any choice but to shop for you. It is the same reason why Intuit bought Mint.com. It’s not that Mint.com was the simplest service out there. They only had a very good free service. And Intuit, this multibillion dollar company was like, “Whoa, this startup goes to eat our lunch. We will not lose billions of dollars from this. Let’s just buy them for a couple of hundred million dollars.” That’s how the planet works. So release something for free of charge or cheaper than your competition and eventually you’ll start gaining on their market share.
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