What does this startup quote mean?


2
The biggest mistake an entrepreneur can make is to invent a
distribution channel and a new product category at the same time. -
Dave Brown
Why is it the biggest mistake? (to invent a distribution channel and a new product category at the same time)

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asked Sep 3 '12 at 18:21
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Voloda2
111 points

3 Answers


7

Because now you have to convince people to do 2 things: buy into something new AND do business differently.

One or the other is hard enough. Both together - it's like launching a new TV station, but you can only access it with a propitiatory box. Even if the box is free, it's still a big step.

answered Sep 3 '12 at 22:34
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Tom Morgan
186 points

2

Because that way basically you will not have customers to sell to.

New distribution channels work great but with well known products that the masses are using and looking for.

New products are hard to sell because you have to educate people how the new product is better than the rest.

I guess with new product and new distribution channel you will have product that people don't know they need as well as they do not know where to buy it from.

answered Sep 3 '12 at 21:57
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Beta Sve
94 points

0

Basically, with a new product and new distribution channel it's like starting all over again. You don't have anything to go off of.

If you're launching a new product to seasoned distribution channels, they're more likely to succeed as you already know the audience.

If you're launching a new distribution channel, it's more likely to succeed because you have the products reputation to build off.

If you' try both...you have nothing to build off.

answered Sep 5 '12 at 14:54
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Randy E
632 points

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