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Your validation strategy will make you fail

I don't say this lightly, most of what's online is written for confirmation bias

Because the actuality is tougher

As someone who's iterated through multiple products, for myself and clients I've realised the "nice to read" articles on validation miss out on some key points

48 client Apps, 1 Exit and 1 SaaS picking 10% WoW growth, I've come to learn this

Everything in this list does not derive validation:

  • Email waitlist
  • "This sounds amazing"
  • Support from friends or family
  • Free trial users
  • "Beta" testers
  • Page visits
  • Sign ups
  • Raising VC funds, as it infamously goes, 90% of VC funded startups go bankrupt

Instead, these should be a point of focus:

  • Commitment of time (they'll jump on interview calls)
  • Commitment of reputation (they'll shout you out on Twitter, with friends)
  • Commitment of money (they'll pay in advance)
  • Surpassing resistance (they'll get over a tough onboarding process)
  • Signing up for an affiliate program (people sell what they believe in and trust)
  • Competitors with paying customers (competition is validation)
  • Conversions from visits to users (actually sign up)
  • People who "activate", not just sign up, i.e they derive value (use your product the intended amount of time)

*read the Mom test, game-changer

Often times founders use the lowest barrier of entry from your potential customer as a form of validation and that's where the failure arises from

Now you may say "oh that's bullshit, Robinhood had 1M people on their waitlist" yes but I'll then tell you that their validation wasn't the "volume" it was that people were referring 10s of friends to get on board as well so they can "bump up" in the position

i.e commitment of reputation and "high want to be bumped up"
If you really build something people want (and inherently need) your potential customers will jump hoops to use your product

I call it the Shawshank theory, your customer wants freedom, they need it, your version 0.1 idea is a simple pipe that gives them that freedom.

Your customer is both willing to work to get access to the pipe and use the discomfort the initial version has because the outcome is so valuable to them

  1. 4

    None of these are validation.... until the money hits your bank account. :)

  2. 2

    Everything in this list does not derive validation:
    Email waitlist
    "This sounds amazing"
    Support from friends or family
    Free trial users
    "Beta" testers
    Page visits
    Sign ups
    Raising VC funds

    Absolutely, these can be helpful cause they might encourage you to keep trying, that people might be interested in the idea and not the finished product itself.
    As long as there's no real commitment from the customers, don't think your idea is validated.
    And yes, read the Mom Test.

  3. 1

    Well said. How would you advise new founders to approach the right validation methodology?

  4. 1

    I call it the Shawshank theory, your customer wants freedom, they need it, your version 0.1 idea is a simple pipe that gives them that freedom.

    I love this, great analogy for the core value of any SaaS product.

  5. 1

    Very well said. A nice reminder for myself

  6. 1

    I Will surely apply these focus points on this blog and will observe the results. Thanks for sharing.
    https://thehealthytalks.com/what-to-expect-six-months-after-spinal-fusion/

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