Entrepreneur Uri Levine discusses the misconception that a product will automatically go viral without the need for marketing or user acquisition. While many hope for viral distribution or word-of-mouth growth, it often doesn’t happen as quickly as desired. Levine agrees that a viral product can lead to market leadership if it achieves product-market fit and retains customers. However, the challenge arises when a product is not inherently viral, requiring others to use it for value to be experienced.
Levine clarifies that the viral element is often actually word of mouth (WOM), as seen with popular apps like Waze. While many may believe their go-to-market strategy is based on WOM, it’s important to understand that WOM is a product strategy, not a GTM strategy. To facilitate WOM, a product needs characteristics such as high frequency of use or a “WOW” effect. High frequency of use increases opportunities for users to share the product with others, leading to organic growth. The “WOW” effect, on the other hand, is rare and can create a sense of amazement and magic for users.
Levine emphasizes the importance of a strong GTM strategy for startups, as figuring out product-market fit is the critical first step in the entrepreneurial journey. Without this fit, a business may struggle to survive. GTM strategy involves understanding how to effectively reach and acquire customers, which can be a challenging aspect for many startups. While some products may naturally lend themselves to viral growth, most will need a well-thought-out strategy to achieve success.
As part of his entrepreneurship series, Levine provides insights and tips for entrepreneurs navigating the complexities of building and scaling a startup. Understanding the nuances of viral products, word of mouth, and the WOW effect can help entrepreneurs better position their products for success in the competitive market. By focusing on creating value for customers and establishing a solid GTM strategy, startups can increase their chances of achieving market leadership and sustainable growth.
