Good Positioning Makes Everything Easier

Thankfully, the founders figured out a subtle shift in positioning around the time I joined that made a big difference. They kept all three core elements in place, but started pitching it as a newsletter platform rather than a paid publishing platform.

In Substack’s case, life in the “paid publishing platform” market was rough, because very few people thought they wanted it, and the people who did were locked up by switching costs from the complex systems they rigged together. But competing in the “newsletter platform” market was a dream in comparison. Hamish could email writers on Mailchimp and ... See more

It might not seem like it, but little language changes like this can have a large impact. I think it's easy to underestimate the effect this can have because very little about the product has to change—to many product-oriented founders it doesn't seem ”real.” Because of this, many founders choose by default the market framing (aka “positioning”) th... See more

Needless to say, competing in the “newsletter” category made life easier. It wasn't perfect: most of the writers we acquired this way did not start paid subscription newsletters, and we generated no revenue off them. But still, it was absolutely worth it. The “newsletter” positioning served as a wedge, and generated a viral distribution loop where ... See more