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B2B vs B2C, hiring for sales, and bootstrapping a two-sided marketplace
Executive overview
B2C SaaS is brutal: low price points, high churn, and no margin for paid marketing. Selling to non-technical buyers like doctors or dentists requires high-touch sales — and the founder must do it until the process is repeatable. Two-sided marketplaces are a trap unless you already own one side of the market.
Build distribution before you build the marketplace.
B2B vs B2C: why founders pivot
- B2C price points ($5–$15/month) make most marketing channels unaffordable.
- High churn is structural, not fixable — consumers deprioritise "vitamin" purchases.
- The vitamin vs aspirin distinction is about urgency, not frequency: aspirin solves a pain you act on immediately; vitamins get skipped.
- Many founders pivot to B2B after seeing B2C churn rates firsthand.
Hiring for sales: medical and professional markets
- Doctors, dentists, and lawyers rarely self-serve onboard — expect longer sales cycles and more support.
- This is customer pain: your buyers are non-technical and need handholding; contrast with competitor pain, where early adopters need less guidance.
- Never hire a salesperson before you have a repeatable, documented sales process.
- The founder must do sales first — they carry product knowledge, pain-point understanding, and domain context that can't be transferred without a working process.
- If you're running this as a side project, it's the wrong project — it requires your full attention.
- Once you have a proven process, use startup-focused recruiters (e.g. Tropical MBA, Avra Talent) rather than traditional full-service firms.
- Study Steli Efti's material on hiring salespeople before starting the search.
Bootstrapping a two-sided marketplace
- Avoid two-sided marketplaces by default — the cold-start problem on both sides is expensive and slow.
- If forced, raise funding: you're fighting a war on two fronts and need the runway.
- The core exception: bootstrap only if you already have access to one or both sides of the market.
- Build one side first via a content play, portfolio site, community, or teaching — spend 6–18 months growing that audience before activating the other side.
- Example: Smashing Magazine or Dribbble could launch a designer marketplace cheaply because they already own the supply side.
- Once supply is established, demand (buyers) is far easier to acquire through ads or direct outreach.
Acquiring a small app: what to look for
- At sub-$2k MRR, you're buying a code base and a few customers — not a business.
- A non-preferred tech stack is manageable if the asset has durable value (SEO footprint, proprietary data, press links) that would be hard to replicate.
- A country-specific TLD is a meaningful constraint if you want broader reach — factor in the cost and friction of replatforming.
- Ask: what would take me a year to build from scratch? That's the real floor for valuation.
- Spam delivery of registration emails is fixable; a dead-end tech stack at low revenue is not worth betting on.
Fear of being copied during validation
- Copying is rare before you have visible success; it becomes more likely after a public launch with traction.
- The value of validation and early buzz (launch lists, interviews) outweighs the small risk of being copied.
- Build moats through brand, execution, and distribution — features alone are copyable; those aren't.
- Focus on one product at a time before expanding.
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