100 paying users or 1000 non paying ones?
Shared by jornie · 683d ago · 1 comment

A recurring theme that I’ve seen with startups and VC culture is growing user base fast with no business model.

Looking attractive to investors is the most important thing for startups. And there’s no better way to attract investors than to have lots of users and no business model.

So my question is, would you rather have 100 paying users for your startup or 1000 non paying ones.

deploynets.ai · 683d ago

100 paying one 100%, unless you're the exception to that rule (I'll expand below). The reason is simple: presumably you're building something that provides some kind of value for some people. People paying is a very good signal that you're building something that adds value. 1000 non paying users tells you much less about your product.

The exception to that rule is when you're building a service that relies heavily on network effects and you need to get started, like social media. You need to get out of that chicken and egg problem, and one way to do that is to accept lots of non paying users at first.