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Build Your SaaS - Should startups worry about their competition?

Should startups worry about their competition?

Explicit content warning

01/22/19 • 44 min

Build Your SaaS

In this episode Jon and Justin discuss talk about how you should think about your software product's competition.

Why you shouldn’t focus on the competition

  • It’s a distraction. The main point by many folks is: “when you focus too much on the competition, it means you’re not focusing enough on your customers.”
  • It causes anxiety.Last summer, I stopped[reading industry news]. I had just reached the point at which I could feel an unhealthy level of toxicity piling up inside of me. I felt myself getting too involved, too absorbed, and a bit too anxious about what I was missing, and about what I knew or didn't know, but thought I should know. I was checking Twitter too often and reloading sites too often. If someone told me about something I hadn't heard of, I felt like I should have already known about it. Industry news was becoming an addiction.” - Jason Fried
  • It’s too tempting to copy features. “Copying skips understanding. Understanding is how you grow. You have to understand why something works or why something is how it is. When you copy it, you miss that. You just repurpose the last layer instead of understanding all the layers underneath.” – Jason Fried
  • It can lead to feature creep. company A is doing this, company B is doing that, so let’s do them all. also, paralyzing indecision and no real thought about why you’d be building a feature.
“I wouldn’t advocate spending much time worrying about the competition — you really shouldn’t waste attention worrying about things you can’t control — but if it helps make the point relatable, the best way to beat the competition is to last longer than they do.” – Jason Fried

Why you should focus on the competition

  • It’s a way of understanding your customers. You should be aware of why customers are choosing (or not choosing) the competition.
  • It’s more competitive now. I wrote a post about this. “It's getting more expensive to build SaaS companies and exits are weak.” Mattermark, 2016. “We're not building these basic CRUD apps like we used to be able to. The stuff's too competitive now.” – Rob Walling. "No one wants to admit it, but the old ‘your product must be 10x better than existing solutions’ trope is dead. I think this is one of the most hostile times for startups that we’ve had, really. Products are better, and competition is enormous." – Zach Holman
  • It’s a way of revealing opportunities. “Everybody's drilling for oil in the same spot because some other guy found oil there already.” – Nick Quah. What’s everyone else missing? Where’s the untapped well?
  • You’re stealing time, attention, and money from somebody , and it’s not always who you think!(Article) When Uber launched, they stole customers from the taxi industry. When the iPhone launched, Apple took customers from Kodak and the film industry.

How to think about the competition

  • SWOT. What are their strengths? What are their weaknesses? What are their opportunities? What are their threats? Do SWOT on yourself too!
  • User interviews. One of the best ways to do user research is to interview folks who are actively using the competition! What brought them to start using it? How’d they find it? What was going on in their life at that time? Why do they keep using it?
  • When people switch. If people switch away from you to a competitor, that’s a great time to ask questions. "The only two people who can give you real feedback about your product are people who just purchased it and people who just canceled.” – Jason Fried
  • Think about how you can outlast them. What are practices you can put in place that will help you outlast the competition? “Whenever a startup goes out of business, the first thing I get curious about are their costs, not their revenues.” – Jason Fried
  • Figure out how you can make things easier.How can you make your app easier to use than the competition?
  • Look for unmet desires. What are the unmet needs of users using competitors’ products? Search Twitter, support forums, etc for instances of people complaining. What are they complaining about?

★ Thanks to our sponsors:

  • Alitu.com: Alitu removes all the tech headaches associated with producing your podcast. They take care of processing, editing & publishing your podcast. Go to
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In this episode Jon and Justin discuss talk about how you should think about your software product's competition.

Why you shouldn’t focus on the competition

  • It’s a distraction. The main point by many folks is: “when you focus too much on the competition, it means you’re not focusing enough on your customers.”
  • It causes anxiety.Last summer, I stopped[reading industry news]. I had just reached the point at which I could feel an unhealthy level of toxicity piling up inside of me. I felt myself getting too involved, too absorbed, and a bit too anxious about what I was missing, and about what I knew or didn't know, but thought I should know. I was checking Twitter too often and reloading sites too often. If someone told me about something I hadn't heard of, I felt like I should have already known about it. Industry news was becoming an addiction.” - Jason Fried
  • It’s too tempting to copy features. “Copying skips understanding. Understanding is how you grow. You have to understand why something works or why something is how it is. When you copy it, you miss that. You just repurpose the last layer instead of understanding all the layers underneath.” – Jason Fried
  • It can lead to feature creep. company A is doing this, company B is doing that, so let’s do them all. also, paralyzing indecision and no real thought about why you’d be building a feature.
“I wouldn’t advocate spending much time worrying about the competition — you really shouldn’t waste attention worrying about things you can’t control — but if it helps make the point relatable, the best way to beat the competition is to last longer than they do.” – Jason Fried

Why you should focus on the competition

  • It’s a way of understanding your customers. You should be aware of why customers are choosing (or not choosing) the competition.
  • It’s more competitive now. I wrote a post about this. “It's getting more expensive to build SaaS companies and exits are weak.” Mattermark, 2016. “We're not building these basic CRUD apps like we used to be able to. The stuff's too competitive now.” – Rob Walling. "No one wants to admit it, but the old ‘your product must be 10x better than existing solutions’ trope is dead. I think this is one of the most hostile times for startups that we’ve had, really. Products are better, and competition is enormous." – Zach Holman
  • It’s a way of revealing opportunities. “Everybody's drilling for oil in the same spot because some other guy found oil there already.” – Nick Quah. What’s everyone else missing? Where’s the untapped well?
  • You’re stealing time, attention, and money from somebody , and it’s not always who you think!(Article) When Uber launched, they stole customers from the taxi industry. When the iPhone launched, Apple took customers from Kodak and the film industry.

How to think about the competition

  • SWOT. What are their strengths? What are their weaknesses? What are their opportunities? What are their threats? Do SWOT on yourself too!
  • User interviews. One of the best ways to do user research is to interview folks who are actively using the competition! What brought them to start using it? How’d they find it? What was going on in their life at that time? Why do they keep using it?
  • When people switch. If people switch away from you to a competitor, that’s a great time to ask questions. "The only two people who can give you real feedback about your product are people who just purchased it and people who just canceled.” – Jason Fried
  • Think about how you can outlast them. What are practices you can put in place that will help you outlast the competition? “Whenever a startup goes out of business, the first thing I get curious about are their costs, not their revenues.” – Jason Fried
  • Figure out how you can make things easier.How can you make your app easier to use than the competition?
  • Look for unmet desires. What are the unmet needs of users using competitors’ products? Search Twitter, support forums, etc for instances of people complaining. What are they complaining about?

★ Thanks to our sponsors:

  • Alitu.com: Alitu removes all the tech headaches associated with producing your podcast. They take care of processing, editing & publishing your podcast. Go to

Previous Episode

undefined - Marketing tactics for your SaaS: how to get the word out

Marketing tactics for your SaaS: how to get the word out

We received some product marketing questions from Nirav Mehta:

  • How to get the word out about your SaaS?
  • Should you pursue partnerships?
  • How can you get distribution for your software product?
  • What marketing channels work best?

Build anticipation before you launch

One big opportunity many folks miss is building up anticipation before they launch. Examples:

  • Adam Wathan and Steve Schoger shared design tips on Twitter and on their blog for 6 months before they released their book, Refactoring UI.
  • Derick Reimer allowed people to “Claim their username” for Level.App before he launched. So far 5,787 people have registered.
  • Ben Orenstein talked about Tuple.app, his new product, on podcasts for months before they launched.

Build a reputation for being helpful

  • Adam, Steve, Derrick, and Ben also have something else in common: they were consistently helpful to their respective audiences for years before they launched anything.
  • Being helpful now, in forums, on Twitter, in podcasts, on your blog, in your mailing list, at conferences, at meetups, in email, is an investment in your future.
  • It’s an advantage that can’t be easily copied or replicated.

Bake SEO into everything you do

  • The most underrated, and often under-pursued, grow strategy is investing in Search Engine Optimization.
  • “SEO is the biggest growth lever that you have and it's something that you should prioritize." - Ryan Hoover, Product Hunt”
  • Think about it, when people have a desire to solve a problem, what do they do? They Google it! If your product is the answer to people’s question, you want to make sure they can find it on Google.

Quick SEO tips:

  1. Explore what questions are asking on: Answerthepublic.com.
  2. Use a tools like Ahrefs.com on your competitors’ sites! See what keywords people are using to find their site, and what their most popular pages are.
  3. Make sure you have Google Search Console set up for your website. They have a new “Performance Report” that will show you what keywords people are using to find your site, and where you could rank better.
  4. Focus on what matters on each page:
    1. Main title - should feature the focus keywords, preferably at the beginning of the title.
    2. Subheader or first paragraph – expanded description, should also feature the focus keywords.
    3. Alt text in images – alt text was designed to show text when an image is not loading properly, or if someone has to use a screen reader. This text is read by Google as any other content.
    4. Meta description – a short, concise (usually 300 characters or less) description of a webpage, shown in search results.
  5. Keep a document on “blog post title ideas.” For example, I can see, through all my research, that “podcast distribution” is a good keyword combination to pursue. So I could write a blog post with the title: “Podcast distribution made easy - 5 steps.”
  6. Write these authoritative guide on a topic. Ben Orenstein noticed that there weren’t any good pair programming guides, so he wrote one! http://learntopair.com. These guides typically get shared a lot, which means you’ll get high quality backlinks to your site (which is important for SEO).
  7. People will also search for “[competitor name] alternatives.” Those are great keywords to target.

The big list of marketing channels:

  • Ads: Facebook Ads, Adwords, LinkedIn ads, etc.
  • Partnerships: finding influencers that have a similar audience to you, and cross-promoting
  • SEO: getting backlinks to your landing page from other sites, and ranking for certain keywords
  • Content marketing: blogging, infographics, viral videos
  • Platform marketing: engaging in Facebook Groups, on forums, in comments threads
  • Direct mail: sending your prospects stickers, postcards, or letters by post
  • Events: attending tradeshows, conferences, and meetups and handing out business cards (or other swag) with your website address

Things to remember:

  • Marketing doesn't work like a jackpot. You're not going to hit that "one thing" that works and creates an avalanche of sales. Instead of "putting it all on black," it'd be better for you to diversify your marketing investments: you'll get customers from a vari...

Next Episode

undefined - How to grow your audience

How to grow your audience

In this episode, Jon and Justin discuss the golden rule for growing your audience. This could mean:

  • How to get more paying customers for your software product.
  • How to get more followers on Twitter.
  • How to get more podcast listeners.

★ Thanks to our sponsors:

  • Alitu.com: Alitu removes all the tech headaches associated with producing your podcast. They take care of processing, editing & publishing your podcast. Go to Alitu.com and check out their video demo.
  • Podcastinsights.com: If you want to get into podcasting, check out Podcast Insights. They’re a great resource for folks who want to start and grow a podcast. Podcast equipment guides, how to make money. Join millions of readers learning all about how to start, grow, and monetize a podcast at podcastinsights.com.
  • Want to podcast in 2019? Transistor is cooking up something special for the new year.

Show notes:

What do you think?

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  • Alitu.com
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Build Your SaaS - Should startups worry about their competition?

Transcript

Justin

Alitu.com has sponsored this episode. Again, alitu polishes brands and publishes your podcast automatically. And they've just released a brand new feature where you can record right in the app. So you can upload your normal recording from Skype or your computer, or you can record right in the web app, right in Alitu. It's a great service. Check them out. Alitu, a l I tu.com, and let them know that we sent you.

Jon
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