Fred Wilson, a well known VC, caused quite a stir with a recent post that started with:
"I believe that marketing is what you do when your product or service sucks ..."
After panning marketing a bit more and explaining why startups shouldn't market, he provides his advice on how startups should market. This very confusing message led to a lot of feedback. It's worth looking at the comments in addition to the post.
I think Wilson's core message - that startups should focus on low cost or free customer acquisition - is correct. I also like his 8 points on how to do this.
But I'm fascinated he thinks his points aren't marketing, and that successful early stage companies don't market. He uses Zynga - one of his most successful portfolio companies - as an example of a company that didn't market early on.
I think just the opposite. I think Zynga's early success was entirely due to innovative marketing. They used Facebook for distribution (that's marketing) instead of setting up their own casual game site. This distribution choice, coupled with some very effective viral marketing, is what made Zynga successful.
Zynga clearly marketed, but they didn't use traditional "push" marketing methods like advertising. Or at least they didn't in the beginning. They do now.
Seth Godin's response was that Wilson conflated marketing and advertising. I would state it more broadly. I think Wilson doesn't think startups should use traditional "push" marketing methods. But based on his suggestions, he seems to be encouraging the use of "pull" and social marketing methods.
He just doesn't realize this is also marketing.


I read VIA a VC often and like Fred, he's obviously an intelligent cat.
I think what he was getting at is marketing budget and how too many new or small businesses spend $$$ on marketing before knowing their customers or opportunity.
I'd content that it takes at least a year after starting-up to really know the whole marketplace and form a smart paid marketing strategy.
That's not to say that you can't be clever and do a little something on the cheap to grease your wheels and generate new biz.
Just should be a focus or a big part of your budget in the initial stages.
Posted by: Gabster | March 03, 2011 at 07:25 AM
Zynga was successful because their games are accessible to all via Facebook. They utilized the power of social media to their advantage.
Posted by: experiential marketing | November 03, 2011 at 02:32 AM
Facebook or myspace was effective because their activities are available to all via Facebook or myspace. They used the power of social networking to their advantage.
Posted by: Internet Marketing Tips | January 03, 2012 at 05:54 AM
There is one other thing I want to mention about the original post. I totally left out customer service. That is possibly the single best way to do marketing for startups.
Posted by: business consultants | April 17, 2012 at 10:08 AM
Zynga made the right use in using Facebook for their marketing, in return Facebook grew big because of it's apps which is largely comprised by Zynga. They benefited from each other.
Posted by: chiropractic marketing | May 02, 2012 at 02:49 PM