How To Get Your First Users

By Y Combinator

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Key Concepts

  • Minimum Evolvable Product (MEP): A product version focused on adaptability and learning from early users, rather than just minimal functionality.
  • Early Adopters: Individuals willing to try new products and provide valuable feedback, often driven by a specific need or enthusiasm for innovation.
  • Path Dependency: The idea that a product’s evolution is heavily influenced by the preferences and feedback of its initial user base.
  • Proumers: A portmanteau of "professional" and "consumer," referring to individuals who use professional tools for personal projects or have a high willingness to pay for valuable software.
  • Evolutionary Search: The process of iteratively developing a product based on feedback and adaptation to market pressures, akin to biological evolution.

Finding Your First Users & Building a Product That Evolves

This discussion centers on the challenges of launching a new product and, crucially, identifying and leveraging the right early adopters. The core argument is that securing initial users isn’t about broad persuasion, but a focused search for individuals uniquely positioned to benefit from, and provide feedback on, a nascent product.

The Problem with Early Adoption

The speaker highlights that most people aren’t early adopters. The vast majority of individuals haven’t been among the first ten users of products they currently utilize. Convincing the average consumer to be a startup’s initial paying customer is exceptionally difficult. As stated, “Almost no one wants to be a startup's first paying customer.”

Identifying the Right Early Users

The key lies in finding those who do embrace new solutions. These fall into two primary categories: individuals who genuinely enjoy experimenting with new products (like the speaker’s colleague Gustaf at Airbnb) and those with a pressing, unmet need. A personal example illustrates this: the speaker quickly found and paid a startup to provide an inference API, solving an immediate problem for their team within three days. This demonstrates that problem severity often outweighs concerns about a startup’s size or reputation. The speaker emphasizes, “Finding your first users is more of a search problem than a persuasion problem.”

Core Strategies for Early User Acquisition & Product Development

Several interconnected strategies are presented:

  • Charge Real Money Early: Despite the initial difficulty, charging for the product is vital. Early adopters with a genuine need are typically less price-sensitive. More importantly, paying customers provide significantly more valuable and direct feedback than free users. The speaker notes, “You’re more likely to get feedback from an angry customer paying a lot of money than a nobody who isn't willing to pay.”
  • Targeted Personal Outreach: Traditional marketing methods like billboards are unlikely to reach the desired audience. Instead, focus on direct, personalized outreach – targeted cold emails or direct contact – to identify potential early adopters.
  • Launch Early: YC (Y Combinator) advocates for early launches to maximize exposure and gather data on potential users. This allows for a wider “surface area” for early adopters to discover the product.
  • Anthropological Study of Early Users: Treat early users as subjects for in-depth study. Understand their decision-making processes, motivations, and why they chose to trust the product. This understanding is crucial for guiding product evolution.
  • Rapid Experimentation & Acceptance of Churn: Constant experimentation with pricing, landing pages, onboarding, and features is essential. However, losing early users (churn) shouldn’t be a source of stress. The relationship is personal, allowing for potential fixes, and there are always more potential users to reach. The advantage startups have is that failed experiments don’t generate negative publicity.

The Shift Towards "Proumers" and Business Customers

The discussion highlights a growing trend, particularly in the AI space. Consumer app spending is relatively low (the speaker’s personal spend is approximately $150/month), while corporate spending on software tools is significantly higher. This makes targeting “proumers” – individuals who use professional tools for personal projects – or businesses a more viable strategy, especially given the high costs associated with AI development. The speaker suggests targeting users like doctors, who have a high advertising value.

Product Evolution as an Evolutionary Process

The speaker uses the analogy of a phylogenetic tree to illustrate product evolution. Early startups are akin to amoebas – possessing only the basic functions necessary for survival and exposure to external pressures. Through iterative feedback and adaptation, the product evolves, mirroring the progression from simple organisms to complex life forms.

The Tesla Roadster serves as a compelling case study. While often framed as a funding mechanism for the Model S and 3, it also functioned as a search for early adopters willing to tolerate significant compromises (limited range, impracticality, high cost) in exchange for cutting-edge technology.

This illustrates the concept of path dependency: the Tesla Model Y’s features (fast acceleration, advanced tech) are a direct result of the preferences of those early Roadster buyers. Had those early adopters prioritized comfort over performance, Tesla’s product line would likely look very different today. As the speaker states, “Would a mass market vehicle designed in a vacuum have a 0 to 60 of under 3 seconds? Probably not.”

The Minimum Evolvable Product (MEP)

The central takeaway is the importance of building a minimum evolvable product (MEP) rather than simply a minimum viable product (MVP). An MEP is designed to adapt and respond to market pressures, guided by the feedback of early users. This approach acknowledges that the initial product will change significantly and prioritizes adaptability over perfection.

Conclusion

Successfully launching a new product hinges on identifying and engaging the right early adopters. This requires a focused search, a willingness to charge for value, and a commitment to rapid experimentation and adaptation. The product’s evolution is not predetermined but shaped by the preferences of those initial users, making the MEP a crucial framework for navigating the early stages of product development. The freedom to iterate and adapt, knowing the product will change significantly, is a key advantage for startups.

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