Marketing where your competitors do is expensive, especially if they’ve raised a bunch of money. You’ll both constantly bid up prices and there will always be at least one other player in your potential customer’s consideration set when they are evaluating your product.
When you’re working to get your first 1,000 customers, you want every advantage you can get. If your product is compared side-by-side to your competitor’s, it will probably lose:
- They have more features
- They can undercut you on pricing
- They have a big customer success team
- They have strong partnerships
They can also afford to spend more on marketing because they’ve either raised money or have nailed their CAC:LTV, i.e. they’ve already been through the “marketing experiment” stage, have built a brand and understand their churn and unit economics really well.
Let’s talk marketing channels for a minute. Most places you’d think to market your product to potential customers are already saturated and too expensive to touch unless you’ve achieved some sort of predictable scale.