YC SUS: Gustaf Alströmer and Eric Migicovsky discuss growth tactics

Introduction to Speakers00:00

Gustaf Alströmer works at YC as a partner for two and a half years. Previously, spent almost five years at Airbnb on growth and product, from growth team to product manager. Worked on growth at other companies before that. Seen really good stuff like Evan B and really hard stuff at other companies. Delivers several lectures to YC core participants during batch on growth. Main person founders turn to for growth questions.

Getting Paying Customers Before Paid Growth for Network Effect Platforms01:02

From My Education Club: Building peer-to-peer lending platform. Christophe talked about getting paying customers ASAP before paid growth. How does this work for social networks or platforms with network effects?

Historically, many social products last ten years based on advertising: charge advertisers, not users. Led to idea not to monetize early, just grow. Twitter, Facebook, LinkedIn, Snapchat grew without paid marketing via viral invites, word of mouth. LinkedIn used email and SEO.

For network effects products (product better with more users), critical to get first million or couple million users. LinkedIn early days useless without coworkers to connect.

Fewer companies today start with advertising because extremely hard to compete with Google and Facebook, best advertising platforms. Not like competing with TV or newspapers.

Most companies now charge users. Example: Twitch (post ad-driven), enables creators to charge streamers, earns percentage of transactions.