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Date: Fri, 16 Aug 2024 17:00:43 +0000 (UTC)
From: Collin Stewart <predictablerevenue-newsletter@mail.beehiiv.com>
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Subject: finding first tracks
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Good morning Andrew,=20

I sat down with a newsletter subscriber, I=E2=80=99ll call him Greg because=
 he asked to remain anonymous, when he was in one of the hardest yet most f=
un parts of his startup journey. He had found his first 30 customers and wa=
s trying to decide if he should stay focused on improving the product or sw=
itch his focus to revenue. Greg runs an edtech platform, they=E2=80=99re 18=
 months into the journey, raised $1m, and kept the team small. Their best c=
ustomers are middle schools that have adapted a dedicated weekly block for =
reteaching math.=20

Here=E2=80=99s the tl;dr:

* Greg is looking for =E2=80=98first tracks=E2=80=99 that will lead him to =
product market fit=20

* There are four different types of first tracks I=E2=80=99ve used, product=
 usage, referrals, customer sentiment, and feedback=20

* You=E2=80=99re ready to move to revenue when you reach the Saul Goodman l=
ine (all =E2=80=9Cgood=E2=80=9D scores for each of the first track types)=20

Here=E2=80=99s the full post:=20

My first thought was to use the product market fit funnel as a measurement =
but their pipeline was just getting started and the funnel showed the obvio=
us, they aren=E2=80=99t there yet. It answered Greg=E2=80=99s question but =
it didn=E2=80=99t help him understand what to look for, other than more dea=
l volume. While I was thinking about our conversation, I listened to an epi=
sode of Invest Like the Best with Boyd Varty talking about the art of track=
ing. As I listened, I couldn=E2=80=99t help but think of Greg=E2=80=99s sit=
uation. He was pursuing something interesting, he hadn=E2=80=99t found the =
trail yet, and needed to find the signs that there might be a track here. B=
oyd talked about finding the first tracks that you need to string together =
in order to find the trail. When you=E2=80=99re first learning to track, yo=
u don=E2=80=99t know what the first tracks looks like because you don=E2=80=
=99t know the characteristics of the terrain. Eventually, you train yoursel=
f to see the path forward, developing what he calls track awareness. Someth=
ing clicked for me, Greg didn=E2=80=99t need advice on how to follow the pa=
th, he needed something to help him find the track. He was looking for firs=
t tracks.=20

Finding product-market fit isn't a straightforward path. Everyone=E2=80=99s=
 route to the path will look different but the first tracks, the signals th=
at there=E2=80=99s something exciting just up ahead, will be similar. Here =
are three sets of first tracks I=E2=80=99ve used in the past:=20

**Product usage **
Good =3D everyone who=E2=80=99s paying for it is still using it
Great =3D Net-negative churn - any revenue contraction covered and more by =
expansion from current accounts
Bad =3D >20% annual churn=20

**Referrals **
Good =3D any number of referrals to customers that close=20
Great =3D 10% of active customers have sent at least one referral=20
Could Be Bad* =3D no referrals=20

_*Could be bad because some industries & customer segments just aren=E2=80=
=99t conducive to referrals. _

**Customer Sentiment, or the =E2=80=9Chow would you feel if this product di=
dn=E2=80=99t exist anymore=E2=80=9D question**
Great =3D Very disappointed
Good =3D Somewhat disappointed
Bad =3D Not disappointed (it isn=E2=80=99t really that useful)
Real Bad =3D N/A =E2=80=93 I no longer use the product

All Great=E2=80=99s are not created equally. The Customer Sentiment =E2=80=
=9CGreat=E2=80=9D is a bit soft because it is the most subjective of the th=
ree and therefore the easiest to trick yourself with. In my experience, whe=
n customers say they are happy but aren=E2=80=99t buying more or sending re=
ferrals, it=E2=80=99s a sign they aren=E2=80=99t happy and don=E2=80=99t wa=
nt to share their feedback. In those situations, I had earned their lack of=
 trust by demonstrating that all I cared about was our vision and not their=
 pain. I needed to build trust by showing vulnerability and demonstrating t=
hat I was receptive to feedback before I could get them to open up with the=
ir real feedback.=20

Feedback quality is a fourth gauge you can use but it=E2=80=99s even more s=
ubjective than customer sentiment. When I=E2=80=99m building something new,=
 I like to have weekly check-ins with all of my customers, moving to monthl=
y when we cross over the 10 mark. I have three priorities in these meetings=
, to ensure everyone is able to use the product, build our relationship by =
providing any coaching they might need, and get feedback on what parts of o=
ur product need to be improved. The first two goals ensure that the custome=
r is able to use and get value out of the product and the last one tells me=
 how they=E2=80=99re really feeling about our product. It=E2=80=99s actuall=
y the timescale of the feedback that tells me the most.=20

Great =3D feedback and product ideas that could help them build this into t=
heir workflow=20
Good =3D feedback on bugs that are driving them crazy right now=20
Bad =3D no feedback or ideas for things that are not aligned with your visi=
on/roadmap.=20

Feedback on bugs sounds bad but it=E2=80=99s a sign that they care enough a=
bout your solution that they are mad that it doesn=E2=80=99t work better. Y=
ou definitely have work to do but your users care and that=E2=80=99s the mo=
st important thing. No feedback or misaligned feedback is an indication tha=
t your users either don=E2=80=99t care or don=E2=80=99t want to solve the p=
roblem in the same way you do. It might be bad or it could be a miscommunic=
ation, either way, it=E2=80=99s valuable to understand why. Feedback on thi=
ngs you could do in the future or things that they would need to integrate =
your product more deeply into their process are the best kinds of feedback.=
 They show that your customer has accepted your product into their life and=
 are thinking long-term about your relationship.=20

When you=E2=80=99re collecting feedback, don=E2=80=99t forget about your cu=
stomer development question framework. Most importantly, =E2=80=9Chow impor=
tant is this to you=E2=80=9D and =E2=80=9Chow satisfied with how your curre=
ntly solving it=E2=80=9D, the combination of the two will help you sort and=
 prioritize feedback. It=E2=80=99s also good to follow up their feedback wi=
th additional questions to help you understand the impact it will have on t=
hem. Sometimes the feedback will be for small quality of life improvements =
but some feedback can open up entire new markets for you that you haven=E2=
=80=99t seen.=20

So, what should Greg do?=20

Let=E2=80=99s get the obvious scenarios out of the way first. If everything=
 is Great, he should focus on revenue. If everything is Bad, he should focu=
s on improving the product. The minimum bar to switch focus from Product to=
 Revenue reminds me of Breaking Bad=E2=80=99s character Saul Goodman - a ri=
ff on =E2=80=9Cit=E2=80=99s all good man=E2=80=9D. While he could switch hi=
s focus at this stage, focusing on Product until he has at least one Great =
under his belt will make everything easier when they switch to Revenue. So,=
 if you=E2=80=99re sitting on the Saul Goodman line ask yourself: Do you wa=
nt to shift to Revenue now, even though it may be harder to find customers?=
 Or can you afford to be patient and invest in finding something Great?=20

Any advice for Greg that I missed? If you have something for him that you=
=E2=80=99d like to share, I=E2=80=99d be happy to pass it along.=20

Collin=20

PS - here=E2=80=99s [a link](https://open.spotify.com/episode/4qaiMrOhjTn28=
1VnTDYIfV?si=3D292d547a4c364cb9&nd=3D1&dlsi=3D603ceb0671724741) to the Inve=
st Like the Best episode I mentioned above

PPS - I=E2=80=99m going to test out running =E2=80=98free ads=E2=80=99 in m=
y PS for the next few weeks. They=E2=80=99re free because nobody=E2=80=99s =
paying me to do so. My goal is to highlight a subscriber from this communit=
y that might need a little boost. My initial focus is going to be on compan=
ies under $1m that might have something that could help the community. If y=
ou=E2=80=99re interested, send me a little about your team, product, and wh=
y you could use a boost.=20

PPPS - here=E2=80=99s the first =E2=80=98free ad=E2=80=99 - Speedsense is a=
 web performance service that helps companies increase revenue by decreasin=
g their websites load times. Check out how [they helped Arc=E2=80=99teryx](=
https://www.speedsense.com/case-studies/arcteryx) here. If you talk to Shaw=
n, tell him Collin says hello.=20


=E2=80=94=E2=80=94=E2=80=94

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</style></head><body class=3D"a" style=3D"margin:0px auto;padding:0px;word-=
wrap:normal;word-spacing:normal;background-color:#FFFFFF;"><div role=3D"art=
icle" aria-roledescription=3D"email" aria-label=3D"email_name" lang=3D"en" =
style=3D"font-size:1rem"><table role=3D"none" width=3D"100%" border=3D"0" c=
ellspacing=3D"0" align=3D"center" cellpadding=3D"0" class=3D"gg"><tr><td al=
ign=3D"center" valign=3D"top"><table role=3D"none" width=3D"670" border=3D"=
0" cellspacing=3D"0" cellpadding=3D"0" class=3D"aa" style=3D"width:670px;ta=
ble-layout:fixed;"><tr><td class=3D"bodyWrapper" align=3D"center" valign=3D=
"top" style=3D"padding:10px 5px 10px 5px;"><table role=3D"none" width=3D"10=
0%" border=3D"0" cellspacing=3D"0" cellpadding=3D"0" align=3D"center"><tr><=
td align=3D"center" valign=3D"top" style=3D"border:0px solid #FFFFFF;border=
-radius:10px;background-color:#FFFFFF;" class=3D"c"><table role=3D"none" wi=
dth=3D"100%" border=3D"0" cellspacing=3D"0" cellpadding=3D"0" align=3D"cent=
er"><tr><td class=3D"f" align=3D"right" valign=3D"top" style=3D"padding:20p=
x 15px;"><p> August 16, 2024 &nbsp; | &nbsp; <a href=3D"https://link.mail.b=
eehiiv.com/ss/c/u001.xDrLMY0giiSlGuELGCgU3vcTjpRMaSWzujUngxObjZYrCabQfdS8Qe=
uInKYXW1f7zERfv7jOSuiv2gvc7Eclpvv2T_xtuA310NX9UIG7-wFn06rldm41l14J1t8l7qqn6=
UFoEOeIfgCu0xpOevp9YVbTiUOIs_i-FbU4lp0MFjoxDj98e4U_pxq-IgTsRlpl3eO3USTI5oWF=
LJSAWiCuQdWP9B1ZPRNwSm7-xtpuZy8WxgmLffieSvuAolAKziKzrhY2JoyStiXZCH3nC883ACK=
RtI7NHPE0eW0oxTIWcDrjH006ug4NdhG2E_guVqWO8--M0C-J1uK1WaG-EDjYZulNPNf3MVqEOD=
knV_Q0IS6nYcyOCn0UG7lrKIXA1QzUxUX8Dg4Ts2FqJLMk-8UCXfoS2x56S0W5tp9RVPP2w7u0G=
6Ic3NMXd3ALuiGKq8CdBksP1lrYMLr77TZAnUeTfvwSF78HHYNngWMXcHLXLFaDJfcOmcmMA7fh=
-buwLW6Knk1x6EsC8unDeM6UWYRPciyEBJjO6vGPiYepRuiEqJnwrRWw3JzxSaMPziY_FGMcOLz=
n8ba_d88UTM4uipGhFgM8ucQbfNWNuRsIOIRz9w4QcSQQTMAgrDBZ3WkQvW2bu403_1WRGgLr-d=
bca8mCk9U8G6C_ud4Zoo0HxHW1UnTEmXWQEHWUiM2pxki7a3H6rw4h6FG9v9_IjB3Hr02QmmanM=
FFZZSVkAYfpSaAlfKDwE-JYuOYY6LE5YvdVgveZ/48y/GmV2IctqSbSUKqpV7ZcDSQ/h0/h001.=
e6lA5S0-cYqHa2Kb40GLFDZndyqtpjawNfyeY8k7Hno">Read Online</a></p></td></tr><=
tr><td class=3D"dd" align=3D"center" valign=3D"top" style=3D"padding:0px 15=
px 20px;"><table role=3D"none" width=3D"100%" border=3D"0" cellspacing=3D"0=
" cellpadding=3D"0" align=3D"center"><tr><td align=3D"center" valign=3D"top=
"><h1 style=3D"text-align:left;font-family:'Trebuchet MS','Lucida Grande',T=
ahoma,sans-serif;font-weight:Bold;font-size:32px;color:#2A2A2A;padding:2px =
0;line-height:38px;"> finding first tracks </h1></td></tr></table></td></tr=
><tr><td align=3D"center" valign=3D"top" style=3D"padding:5px 15px;" class=
=3D"dd"><table role=3D"none" width=3D"100%" border=3D"0" cellspacing=3D"0" =
cellpadding=3D"0" align=3D"center"><tr><td align=3D"left" valign=3D"middle"=
 class=3D"mob-stack"><table role=3D"none" border=3D"0" cellspacing=3D"0" ce=
llpadding=3D"0" align=3D"right" class=3D"social-mobile"><tr><td align=3D"le=
ft" valign=3D"middle"><table role=3D"none" border=3D"0" cellspacing=3D"0" c=
ellpadding=3D"0" align=3D"left" style=3D"width:100%"><tr><td align=3D"left"=
 valign=3D"middle" style=3D"overflow: hidden;"><a style=3D"text-decoration:=
none;display:block;color:#989898;max-width:22px;border: 1px solid #EFEFEF;b=
order-radius:50%;width:23px;height:23px;overflow:hidden;padding:7px 0 0 8px=
;position:relative;" href=3D"https://link.mail.beehiiv.com/ss/c/u001.UY7-jE=
McRLZ5W6M0bzLpmxH7-WTt-1gChtTcndEMyBoSwgSdDaOALV1MAeTHOBSUWCqEjdMxJtRDlZvsK=
nAu88Z1YRIslV1dQgAoGeH-LlK989xEpf95Db8ika45SlwhTcebUM9PZMOxcEU8EIFTSFBEdI5s=
sBS-mixOwiEY9mWSDxn1NgJ5iXTnWMmwVmgGkKkR1ih86iIhGmzGd5f4anMdAlXgofPXSX7-fIU=
eI_KCDJTxU6vzRcHBpStrz5FSl-iCH1cPeonjyKhUvyzKw5SRESJJ6AoqAD23qHE3yY5j6RExAa=
JOeZR8RdTZRopdTm4hvchOFXHEToHFMvyb4tpqx9zsPLxEPQMnjGHoZ9Y9hdPLfzfCVcsvTRmzg=
y3_RcYE0R07q651W9EuXth3DJUp_maJzaRHgOwbXtz1s7g/48y/GmV2IctqSbSUKqpV7ZcDSQ/h=
1/h001.Vt-c8pmGKnvNLuxBmx44yeYV03Hp594tTdAXd3De7-8"><img style=3D"display:b=
lock;color:#000000;max-width:14px;" width=3D"18" alt=3D"fb" border=3D"0" sr=
c=3D"https://media.beehiiv.com/cdn-cgi/image/fit=3Dscale-down,format=3Dauto=
,onerror=3Dredirect,quality=3D80/static_assets/facebook_grey.png"/></a></td=
><td width=3D"14" style=3D"width:14px;">&nbsp;</td><td align=3D"left" valig=
n=3D"middle" style=3D"overflow: hidden;"><a style=3D"text-decoration:none;d=
isplay:block;color:#989898;max-width:28px;border: 1px solid #EFEFEF;border-=
radius:50%;width:21px;height:21px;padding:9px 0 0 9px;overflow:hidden;posit=
ion:relative;" href=3D"https://link.mail.beehiiv.com/ss/c/u001.eT_HH9j2kUx6=
jXW0PHemwzOjQOpuqUKCn7LAbiCzlo1oxUN44u16xvalV9lCzdHNBiGxJ35W2JgtX9Xo4q8B-GD=
__4k5qsGMhwfulOnHCFJkG6AKUBTPgALaaXaYvjxsXK1a7d5twtxhC-NxHipRnbjz7eMbfPgP9m=
zATJt7t8Ay6hqnBx52TDy0pzWreNVVDGB0j82tF5yFi8oEf9LBXYRewJ7KxsrNkN5oAI4o1pPUg=
LEbsbDWoftBPEC-7prDmVgxJ2a1QYwZJ9EAoHLYi11-1g7svYTwuDhmem6OLamhmYKHSCxMx8JB=
RNUbgDdAXfqABXASI0N2LFTKd1h3NcT-VBjJpc5eeeResmzaXHUNkCrAirABvyNih6EwUOdInTi=
kJAVxWQI2h0OXgcBa8Q/48y/GmV2IctqSbSUKqpV7ZcDSQ/h2/h001.SZesLFLxWELWK__qYI2Q=
pLIGgf5YvBDc1xRqL-Hg8O8"><img style=3D"display:block;color:#000000;max-widt=
h:12px;" width=3D"18" alt=3D"fb" border=3D"0" src=3D"https://media.beehiiv.=
com/cdn-cgi/image/fit=3Dscale-down,format=3Dauto,onerror=3Dredirect,quality=
=3D80/static_assets/x_grey.png"/></a></td><td width=3D"14" style=3D"width:1=
4px;">&nbsp;</td><td align=3D"left" valign=3D"middle" style=3D"overflow: hi=
dden;"><a style=3D"text-decoration:none;display:block;color:#989898;max-wid=
th:28px;border: 1px solid #EFEFEF;border-radius:50%;width:22px;height:23px;=
padding:7px 0 0 8px;overflow:hidden;position:relative;" href=3D"https://lin=
k.mail.beehiiv.com/ss/c/u001.UY7-jEMcRLZ5W6M0bzLpm5Vsol3-4mO68bGpSvtYIyCFMP=
HZM3NHfCQCEvGpU3U82219i03ZXpcWbsDp4yL-p1i7f6hDWNjIp0cw1236CySaO_b2JfvcqfWpJ=
jaTinZwPqT1_vci0e7jxBohfGHEyv5rHOhM5hhA57WHuhBkvp1yEcuu6IPSoyFeFBw8Bu0jqcKi=
-iEJgZax9zmb5cRm43CgHCGaEly3qGpQM8AB_B4iZhoZ-bnAEkQulbu5Y7IzE7tMkgKeJlWAFB-=
hTeR9GL022YqtECBVUjI0CVtG7VHrnL1g07-o44SgSgSD7dxz6dvQpNR_XToO52wmQDg7bE-cpm=
y8FgluHk67iQYmAavDyC70dOH2QI83Xmas307IBO-sEnZKe2Gwg95iuWoGQBEif0bTxMWVgld2F=
n9sSXA/48y/GmV2IctqSbSUKqpV7ZcDSQ/h3/h001.rw61r-v2To0b_DmKjKRBMs9djZrCgdCtl=
HJ7Mc-I7Hw"><img style=3D"display:block;color:#000000;max-width:14px;" widt=
h=3D"14" alt=3D"fb" border=3D"0" src=3D"https://media.beehiiv.com/cdn-cgi/i=
mage/fit=3Dscale-down,format=3Dauto,onerror=3Dredirect,quality=3D80/static_=
assets/in_grey.png"/></a></td><td width=3D"14" style=3D"width:14px;">&nbsp;=
</td><td align=3D"left" valign=3D"middle" style=3D"overflow: hidden;"><a st=
yle=3D"text-decoration:none;display:block;color:#989898;max-width:28px;bord=
er: 1px solid #EFEFEF;border-radius:50%;width:24px;height:24px;padding:6px =
0 0 6px;overflow: hidden;" href=3D"mailto:?subject=3DPost%20from%20Predicta=
ble%20Revenue%3A%20Founders%20Edition&body=3Dfinding%20first%20tracks%3A%20=
%0A%0Ahttps%3A%2F%2Fpredictablerevenue-newsletter.beehiiv.com%2Fp%2Ffirst-t=
racks-of-product-market-fit"><img style=3D"display:block;color:#000000;max-=
width:26px;" width=3D"26" alt=3D"fb" border=3D"0" src=3D"https://media.beeh=
iiv.com/cdn-cgi/image/fit=3Dscale-down,format=3Dauto,onerror=3Dredirect,qua=
lity=3D80/static_assets/icon-email.png"/></a></td></tr></table></td></tr></=
table></td></tr></table></td></tr><tr><td style=3D"height:0px;width:0px;"><=
div style=3D"height:1px;" data-open-tracking=3D"true"> <img src=3D"https://=
link.mail.beehiiv.com/ss/o/u001.QDl44NxZBc1mRkS74rGpGQ/48y/GmV2IctqSbSUKqpV=
7ZcDSQ/ho.gif" alt=3D"" width=3D"1" height=3D"1" border=3D"0" style=3D"heig=
ht:1px !important;width:1px !important;border-width:0 !important;margin-top=
:0 !important;margin-bottom:0 !important;margin-right:0 !important;margin-l=
eft:0 !important;padding-top:0 !important;padding-bottom:0 !important;paddi=
ng-right:0 !important;padding-left:0 !important;"/> </div></td></tr><tr id=
=3D"content-blocks"><td class=3D"email-card-body" align=3D"center" valign=
=3D"top" style=3D"padding-bottom:15px;"><table role=3D"none" width=3D"100%"=
 border=3D"0" cellspacing=3D"0" cellpadding=3D"0" align=3D"center"><tr><td =
class=3D"dd" align=3D"left" style=3D"padding:0px 15px;text-align:left;word-=
break:break-word;"><p style=3D"color: ;"><span style=3D"color:rgb(44, 62, 8=
0);">Good morning Andrew, </span></p></td></tr><tr><td class=3D"dd" align=
=3D"left" style=3D"padding:0px 15px;text-align:left;word-break:break-word;"=
><p style=3D"color: ;"><span style=3D"color:rgb(44, 62, 80);">I sat down wi=
th a newsletter subscriber, I=E2=80=99ll call him Greg because he asked to =
remain anonymous, when he was in one of the hardest yet most fun parts of h=
is startup journey. He had found his first 30 customers and was trying to d=
ecide if he should stay focused on improving the product or switch his focu=
s to revenue. Greg runs an edtech platform, they=E2=80=99re 18 months into =
the journey, raised $1m, and kept the team small. Their best customers are =
middle schools that have adapted a dedicated weekly block for reteaching ma=
th. </span></p></td></tr><tr><td class=3D"dd" align=3D"left" style=3D"paddi=
ng:0px 15px;text-align:left;word-break:break-word;"><p style=3D"color: ;"><=
span style=3D"color:rgb(44, 62, 80);">Here=E2=80=99s the tl;dr:</span></p><=
/td></tr><tr><td style=3D"padding-bottom:12px;padding-left:37px;padding-rig=
ht:27px;padding-top:12px;" class=3D"ee"><div style=3D"margin-left:0px;" cla=
ss=3D"edm_outlooklist"><ul style=3D"list-style-type:disc;margin:0px 0px;pad=
ding:0px 0px 0px 0px;"><li class=3D"listItem ultext"><p style=3D"padding:0p=
x;text-align:left;word-break:break-word;"><span style=3D"color:rgb(44, 62, =
80);">Greg is looking for =E2=80=98first tracks=E2=80=99 that will lead him=
 to product market fit </span></p></li><li class=3D"listItem ultext"><p sty=
le=3D"padding:0px;text-align:left;word-break:break-word;"><span style=3D"co=
lor:rgb(44, 62, 80);">There are four different types of first tracks I=E2=
=80=99ve used, product usage, referrals, customer sentiment, and feedback <=
/span></p></li><li class=3D"listItem ultext"><p style=3D"padding:0px;text-a=
lign:left;word-break:break-word;"><span style=3D"color:rgb(44, 62, 80);">Yo=
u=E2=80=99re ready to move to revenue when you reach the Saul Goodman line =
(all =E2=80=9Cgood=E2=80=9D scores for each of the first track types) </spa=
n></p></li></ul></div></td></tr><tr><td class=3D"dd" align=3D"left" style=
=3D"padding:0px 15px;text-align:left;word-break:break-word;"><p style=3D"co=
lor: ;"><span style=3D"color:rgb(44, 62, 80);">Here=E2=80=99s the full post=
: </span></p></td></tr><tr><td class=3D"dd" align=3D"left" style=3D"padding=
:0px 15px;text-align:left;word-break:break-word;"><p style=3D"color: ;"><sp=
an style=3D"color:rgb(44, 62, 80);">My first thought was to use the product=
 market fit funnel as a measurement but their pipeline was just getting sta=
rted and the funnel showed the obvious, they aren=E2=80=99t there yet. It a=
nswered Greg=E2=80=99s question but it didn=E2=80=99t help him understand w=
hat to look for, other than more deal volume. While I was thinking about ou=
r conversation, I listened to an episode of Invest Like the Best with Boyd =
Varty talking about the art of tracking. As I listened, I couldn=E2=80=99t =
help but think of Greg=E2=80=99s situation. He was pursuing something inter=
esting, he hadn=E2=80=99t found the trail yet, and needed to find the signs=
 that there might be a track here. Boyd talked about finding the first trac=
ks that you need to string together in order to find the trail. When you=E2=
=80=99re first learning to track, you don=E2=80=99t know what the first tra=
cks looks like because you don=E2=80=99t know the characteristics of the te=
rrain. Eventually, you train yourself to see the path forward, developing w=
hat he calls track awareness. Something clicked for me, Greg didn=E2=80=99t=
 need advice on how to follow the path, he needed something to help him fin=
d the track. He was looking for first tracks. </span></p></td></tr><tr><td =
class=3D"dd" align=3D"left" style=3D"padding:0px 15px;text-align:left;word-=
break:break-word;"><p style=3D"color: ;"><span style=3D"color:rgb(44, 62, 8=
0);">Finding product-market fit isn&#39;t a straightforward path. Everyone=
=E2=80=99s route to the path will look different but the first tracks, the =
signals that there=E2=80=99s something exciting just up ahead, will be simi=
lar. Here are three sets of first tracks I=E2=80=99ve used in the past: </s=
pan></p></td></tr><tr><td class=3D"dd" align=3D"left" style=3D"padding:0px =
15px;text-align:left;word-break:break-word;"><p style=3D"color: ;"><span st=
yle=3D"color:rgb(44, 62, 80);"><b>Product usage </b></span><br><span style=
=3D"color:rgb(44, 62, 80);">Good =3D everyone who=E2=80=99s paying for it i=
s still using it</span><br><span style=3D"color:rgb(44, 62, 80);">Great =3D=
 Net-negative churn - any revenue contraction covered and more by expansion=
 from current accounts</span><br><span style=3D"color:rgb(44, 62, 80);">Bad=
 =3D &gt;20% annual churn </span></p></td></tr><tr><td class=3D"dd" align=
=3D"left" style=3D"padding:0px 15px;text-align:left;word-break:break-word;"=
><p style=3D"color: ;"><span style=3D"color:rgb(44, 62, 80);"><b>Referrals =
</b></span><br><span style=3D"color:rgb(44, 62, 80);">Good =3D any number o=
f referrals to customers that close </span><br><span style=3D"color:rgb(44,=
 62, 80);">Great =3D 10% of active customers have sent at least one referra=
l </span><br><span style=3D"color:rgb(44, 62, 80);">Could Be Bad* =3D no re=
ferrals </span></p></td></tr><tr><td class=3D"dd" align=3D"left" style=3D"p=
adding:0px 15px;text-align:left;word-break:break-word;"><p style=3D"color: =
;"><span style=3D"color:rgb(44, 62, 80);"><i>*Could be bad because some ind=
ustries & customer segments just aren=E2=80=99t conducive to referrals. </i=
></span></p></td></tr><tr><td class=3D"dd" align=3D"left" style=3D"padding:=
0px 15px;text-align:left;word-break:break-word;"><p style=3D"color: ;"><spa=
n style=3D"color:rgb(44, 62, 80);"><b>Customer Sentiment, or the =E2=80=9Ch=
ow would you feel if this product didn=E2=80=99t exist anymore=E2=80=9D que=
stion</b></span><br><span style=3D"color:rgb(44, 62, 80);">Great =3D Very d=
isappointed</span><br><span style=3D"color:rgb(44, 62, 80);">Good =3D Somew=
hat disappointed</span><br><span style=3D"color:rgb(44, 62, 80);">Bad =3D N=
ot disappointed (it isn=E2=80=99t really that useful)</span><br><span style=
=3D"color:rgb(44, 62, 80);">Real Bad =3D N/A =E2=80=93 I no longer use the =
product</span></p></td></tr><tr><td class=3D"dd" align=3D"left" style=3D"pa=
dding:0px 15px;text-align:left;word-break:break-word;"><p style=3D"color: ;=
"><span style=3D"color:rgb(44, 62, 80);">All Great=E2=80=99s are not create=
d equally. The Customer Sentiment =E2=80=9CGreat=E2=80=9D is a bit soft bec=
ause it is the most subjective of the three and therefore the easiest to tr=
ick yourself with. In my experience, when customers say they are happy but =
aren=E2=80=99t buying more or sending referrals, it=E2=80=99s a sign they a=
ren=E2=80=99t happy and don=E2=80=99t want to share their feedback. In thos=
e situations, I had earned their lack of trust by demonstrating that all I =
cared about was our vision and not their pain. I needed to build trust by s=
howing vulnerability and demonstrating that I was receptive to feedback bef=
ore I could get them to open up with their real feedback. </span></p></td><=
/tr><tr><td class=3D"dd" align=3D"left" style=3D"padding:0px 15px;text-alig=
n:left;word-break:break-word;"><p style=3D"color: ;"><span style=3D"color:r=
gb(44, 62, 80);">Feedback quality is a fourth gauge you can use but it=E2=
=80=99s even more subjective than customer sentiment. When I=E2=80=99m buil=
ding something new, I like to have weekly check-ins with all of my customer=
s, moving to monthly when we cross over the 10 mark. I have three prioritie=
s in these meetings, to ensure everyone is able to use the product, build o=
ur relationship by providing any coaching they might need, and get feedback=
 on what parts of our product need to be improved. The first two goals ensu=
re that the customer is able to use and get value out of the product and th=
e last one tells me how they=E2=80=99re really feeling about our product. I=
t=E2=80=99s actually the timescale of the feedback that tells me the most. =
</span></p></td></tr><tr><td class=3D"dd" align=3D"left" style=3D"padding:0=
px 15px;text-align:left;word-break:break-word;"><p style=3D"color: ;"><span=
 style=3D"color:rgb(44, 62, 80);">Great =3D feedback and product ideas that=
 could help them build this into their workflow </span><br><span style=3D"c=
olor:rgb(44, 62, 80);">Good =3D feedback on bugs that are driving them craz=
y right now </span><br><span style=3D"color:rgb(44, 62, 80);">Bad =3D no fe=
edback or ideas for things that are not aligned with your vision/roadmap. <=
/span></p></td></tr><tr><td class=3D"dd" align=3D"left" style=3D"padding:0p=
x 15px;text-align:left;word-break:break-word;"><p style=3D"color: ;"><span =
style=3D"color:rgb(44, 62, 80);">Feedback on bugs sounds bad but it=E2=80=
=99s a sign that they care enough about your solution that they are mad tha=
t it doesn=E2=80=99t work better. You definitely have work to do but your u=
sers care and that=E2=80=99s the most important thing. No feedback or misal=
igned feedback is an indication that your users either don=E2=80=99t care o=
r don=E2=80=99t want to solve the problem in the same way you do. It might =
be bad or it could be a miscommunication, either way, it=E2=80=99s valuable=
 to understand why. Feedback on things you could do in the future or things=
 that they would need to integrate your product more deeply into their proc=
ess are the best kinds of feedback. They show that your customer has accept=
ed your product into their life and are thinking long-term about your relat=
ionship. </span></p></td></tr><tr><td class=3D"dd" align=3D"left" style=3D"=
padding:0px 15px;text-align:left;word-break:break-word;"><p style=3D"color:=
 ;"><span style=3D"color:rgb(44, 62, 80);">When you=E2=80=99re collecting f=
eedback, don=E2=80=99t forget about your customer development question fram=
ework. Most importantly, =E2=80=9Chow important is this to you=E2=80=9D and=
 =E2=80=9Chow satisfied with how your currently solving it=E2=80=9D, the co=
mbination of the two will help you sort and prioritize feedback. It=E2=80=
=99s also good to follow up their feedback with additional questions to hel=
p you understand the impact it will have on them. Sometimes the feedback wi=
ll be for small quality of life improvements but some feedback can open up =
entire new markets for you that you haven=E2=80=99t seen. </span></p></td><=
/tr><tr><td class=3D"dd" align=3D"left" style=3D"padding:0px 15px;text-alig=
n:left;word-break:break-word;"><p style=3D"color: ;"><span style=3D"color:r=
gb(44, 62, 80);">So, what should Greg do? </span></p></td></tr><tr><td clas=
s=3D"dd" align=3D"left" style=3D"padding:0px 15px;text-align:left;word-brea=
k:break-word;"><p style=3D"color: ;"><span style=3D"color:rgb(44, 62, 80);"=
>Let=E2=80=99s get the obvious scenarios out of the way first. If everythin=
g is Great, he should focus on revenue. If everything is Bad, he should foc=
us on improving the product. The minimum bar to switch focus from Product t=
o Revenue reminds me of Breaking Bad=E2=80=99s character Saul Goodman - a r=
iff on =E2=80=9Cit=E2=80=99s all good man=E2=80=9D. While he could switch h=
is focus at this stage, focusing on Product until he has at least one Great=
 under his belt will make everything easier when they switch to Revenue. So=
, if you=E2=80=99re sitting on the Saul Goodman line ask yourself: Do you w=
ant to shift to Revenue now, even though it may be harder to find customers=
? Or can you afford to be patient and invest in finding something Great? </=
span></p></td></tr><tr><td class=3D"dd" align=3D"left" style=3D"padding:0px=
 15px;text-align:left;word-break:break-word;"><p style=3D"color: ;"><span s=
tyle=3D"color:rgb(44, 62, 80);">Any advice for Greg that I missed? If you h=
ave something for him that you=E2=80=99d like to share, I=E2=80=99d be happ=
y to pass it along. </span></p></td></tr><tr><td class=3D"dd" align=3D"left=
" style=3D"padding:0px 15px;text-align:left;word-break:break-word;"><p styl=
e=3D"color: ;"><span style=3D"color:rgb(44, 62, 80);">Collin </span></p></t=
d></tr><tr><td class=3D"dd" align=3D"left" style=3D"padding:0px 15px;text-a=
lign:left;word-break:break-word;"><p style=3D"color: ;"><span style=3D"colo=
r:rgb(44, 62, 80);">PS - here=E2=80=99s </span><span style=3D"color:rgb(44,=
 62, 80);"><a class=3D"link" href=3D"https://link.mail.beehiiv.com/ss/c/u00=
1.G_FXh2WqEvTN6auln7aYy8RoHPMf9qr4czQJkASRA4YuoncsFJv9M7M4r1p1GC5yhA20su2xG=
jS2FX6oHQ3UyiRpCqreuqEYkqQ8WZCkLghwkmkCsHu1UKt9QwkIotWYfgtz3oJ2VfIKydpxPgtX=
ZIJI7rKVGUeM9Op4RowXYr5fPrV__tn5iEcsIMC589sOSpOrTh7bFP8Mj6RtaaAjYNd1Dgmlbn6=
kUwA6KXALiGHJWYmffmj4dFlFGRmZhrhSTwStXyxFEaX317dqaBxJB5Lfj7LQ8JQ4a8uBsOUMqY=
PC9v1lis5AnwIGAvy8hssk2aggieIi5ixOQ8xftnyxqK1uE4q1ce0mZa-weFiv4kk/48y/GmV2I=
ctqSbSUKqpV7ZcDSQ/h4/h001.aJTUMBb3yZR2sxxLNI5Q8DUvQ9Hyv3F3Tu7mcxnxxdk" targ=
et=3D"_blank" rel=3D"noopener noreferrer nofollow"><span>a link</span></a><=
/span><span style=3D"color:rgb(44, 62, 80);"> to the Invest Like the Best e=
pisode I mentioned above</span></p></td></tr><tr><td class=3D"dd" align=3D"=
left" style=3D"padding:0px 15px;text-align:left;word-break:break-word;"><p =
style=3D"color: ;"><span style=3D"color:rgb(44, 62, 80);">PPS - I=E2=80=99m=
 going to test out running =E2=80=98free ads=E2=80=99 in my PS for the next=
 few weeks. They=E2=80=99re free because nobody=E2=80=99s paying me to do s=
o. My goal is to highlight a subscriber from this community that might need=
 a little boost. My initial focus is going to be on companies under $1m tha=
t might have something that could help the community. If you=E2=80=99re int=
erested, send me a little about your team, product, and why you could use a=
 boost. </span></p></td></tr><tr><td class=3D"dd" align=3D"left" style=3D"p=
adding:0px 15px;text-align:left;word-break:break-word;"><p style=3D"color: =
;"><span style=3D"color:rgb(44, 62, 80);">PPPS - here=E2=80=99s the first =
=E2=80=98free ad=E2=80=99 - Speedsense is a web performance service that he=
lps companies increase revenue by decreasing their websites load times. Che=
ck out how </span><span style=3D"color:rgb(44, 62, 80);"><a class=3D"link" =
href=3D"https://link.mail.beehiiv.com/ss/c/u001.UY7-jEMcRLZ5W6M0bzLpm7B9rdA=
tbFSnJMo7fkpmcg-_m4Hn2UhMdS3YbGG9s1ua4duyuIahpsg8yP-695L0MjuHn-8N-ZaullDoVR=
-eul_F59YaWnxosrIrKuCaSZBShPHR8Mgt4hY_fioPSmuy9A8bbOjuwLuSy2dPezSBQON4l_r7t=
ZGy8jzMap70GtW0UnnsRxXFVEo-5ZkYeH57jQ6p1sqrmc7blg4nPI489myQQn5Qdl39gG57FQQ4=
-ByBaRV6jPgQFq3f6jdxJRofP9rWHK3mQSlDlG7jFqrEvu8/48y/GmV2IctqSbSUKqpV7ZcDSQ/=
h5/h001.kljuvgzlNAfTV0br2w95ZPEZjl141ilU3SDiOsK2Uuk" target=3D"_blank" rel=
=3D"noopener noreferrer nofollow"><span>they helped Arc=E2=80=99teryx</span=
></a></span><span style=3D"color:rgb(44, 62, 80);"> here. If you talk to Sh=
awn, tell him Collin says hello. </span></p></td></tr></table></td></tr><tr=
><td class=3D"b" align=3D"center" valign=3D"top" bgcolor=3D"#007b8a" style=
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