B2C or B2B?

Question

Our incubator is pushing us towards a B2B model, saying that it's better to have reliable revenues, than chase the big dream of a B2C product that is difficult to achieve. Which one would you choose, and why? 🤔

Cristina Imre · Accepted Answer

I do have stories that confirm both sides, Geetanjali. I cannot fully answer because I don't know the product and the business model you were building.

1) I have founders who were pushed to go B2B and even got amazing feedback from big clients during their beta. However, they soon realized the barrier of entry in that market segment could take up to 12+ months and they didn't have the means to wait that long.

Another issue was that once in beta companies realized that their enthusiasm faded once they saw the integration aspects and how many things they need to change to accommodate the software.

The company lost two years of not going anywhere until they shifted markets.

2) If you can provide easily implementable solutions at the beginning a B2B way can work but test out some clients at first. You just never know until you test your idea out.

Another company had a B2C model and they gain huge coverage for a year with 20K+ users, very low revenue. They also got funding and so they scaled. Again the revenue and growth were just not worth it even with the hype.

They accidentally discovered a quick way to tweak their product, create a new B2B line for the wholesale industry, and got three enthusiastic clients who tripled their early revenue just like that.

Not sure what applies to you but never let yourself be pressured if you're strongly confident to do it otherwise. Investors don't know it all.

Nico Muoio · Answer

D2C if you want to have fun B2B if you want to make money.

Geetanjali Shrivastava · Answer

@ezzat Going to follow your progress closely, since we too are building a B2C product.

Just upvoted Spade - will check it out later today! All the best!

Ezzat Suhaime · Answer

For our product, probably B2C. Our product is really consumer oriented. Also, we launched today and would love your support!

Sneha Saigal · Answer

@geetanjalishrivastava we want to make prospective student and alumni connections easier via 1:1 calls. This could potentially be P2P directly with audiences on both sides or B2B if we partner with schools, consultants and more. It's very tricky to navigate to PMF.

Vickie Richard · Answer

B2B

Gurpinder Singh · Answer

It totally depends on your product. What are you trying to sell and to whom. That's the main thing one should look at first. Only then you can figure out things!

Sneha Saigal · Answer

This is such a tricky situation! I feel like we're also at a similar stage - just not at an incubator. Would love to know your experience and what is motivating the mentors to guide you towards B2B.

Qudsia Ali · Answer

It depends on your business. If your study and data indicate that the B2B model is better for your product, then you should consider it.

phrazle · Answer

Some founders I know were encouraged to shift to B2B, and they even received praise from major customers during their beta. However, they quickly phrazle realized they lacked the resources to wait for the 12+ months required to overcome the market's entry barrier.

B2C or B2B?

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