Why should you choose B2B?
February 04, 2019
Most big products were made for consumers. Think Apple, Google, Facebook, Uber, Airbnb, Amazon, Netflix. That’s why we’re always inspired to create consumer products. We want to make the next big thing!
However, is this the better choice for us, makers? I think B2B products are much better for solo-makers and small teams.
B2B is easier to market
If you create a consumer product, you’ll need a lot of users to get a decent profit. A large number of users is very hard to acquire without virality or proper marketing. For B2B products, your customer pays a big subscription, so it’s actually economically feasible to pay for customer acquisition, through sales or marketing. If the customer’s value is higher than acquisition cost, you can repeat it a lot! You don’t need huge budgets or dependance on odds of virality.
B2B is easier to manage
B2B products requires less customers to be profitable. As a solo maker or small team, it makes sense that we can provide better value, experience and customer support for fifty customers than we can do for thousands of people.
B2B requires less guessing
In consumer products, you need a lot of guesswork. You actually don’t know what customers want. And it requires creativity to deliver something people actually want without them asking for it! Think snapchat or tiktok. They just depend on guesses of what people might like. Most of these new ideas fail. In B2B, you’re able talk to potential customers in your market, and simply deliver the features they want.