Sunday, April 22, 2012

Choice Words on Traction

"Growth Curve" via thearmadagroup.com
Traction is real customers. If you charge for your product, it’s real paying customers. If your product is free, it’s a real user base. In other words, traction is a signal that your team can produce real results in a real market.

You don’t need much traction to entice investors. In fact, people like myself prefer just a little because when you have a lot your valuation will probably be too high. The ideal scenario from my perspective is you already got a bit of traction, and you know how to get more with some investment.

You played around with various traction verticals and you identified a few promising ones that brought in your early customers. Now you just need $x to experiment more heavily with those channels. That’s a compelling story.

I should also point out that once you have traction, you may not need investors at all.
Via Gabriel Weinberg - "Traction Trumps Everything"