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Etwas by Borahm Cho · Oct 17, 2024

Creator-First Software Businesses: Guaranteed distribution

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Borahm · Etwas by Borahm Cho

The startup landscape is evolving rapidly, with creator-driven businesses leading a new paradigm. While we've seen success stories like Kylie Cosmetics and MrBeast's Feastables in the physical product space, the real revolution is happening in software. Unlike physical goods, software products offer zero upfront costs, fast iteration cycles and unlimited scaling potential, allowing creators to leverage their influence to build and grow startups at an unprecedented pace.

  • Start with a problem

  • Build product

  • Figure out distribution

  • Build and scale gradually

  • Start with distribution (creators with loyal audiences)

  • Build product for the audience

  • Guarantee demand from day one

  • Build and scale rapidly

Example: Musicfy engaged 10,000 AI music enthusiasts before building their product, ensuring immediate demand upon launch.

  1. AI-Accelerated Development: Rapid prototyping combined with ready audience for testing

  2. Trust in Creators: Authenticity and immediate credibility

  3. Viral Growth Potential: Platforms like TikTok enable systematic, scalable content production

  • Creators as co-builders, not just marketers

  • Leverage established creators' trust and influence

  • User acquisition through trusted creators from day one

  • Community-based, influence-driven growth

  • High initial Customer Acquisition Cost (CAC) justified by guaranteed distribution

  • Delayed marketing spend until significant revenue milestones

The sustainability of this model is debatable, drawing parallels to trends seen in e-commerce:

  • Apps are viewed more like fashion trends – constantly changing and evolving

  • Success is measured by immediate impact rather than longevity

  • Adaptability and trend alignment are prioritized over building long-lasting brands

The creator-first business model is reshaping how startups launch and scale. By leveraging creator influence, community trust, and rapid product iteration, these businesses can achieve unprecedented growth. While the long-term sustainability of individual ventures may vary, the model itself represents a significant shift in startup strategy, emphasizing immediate impact, community engagement, and adaptability in an ever-changing digital landscape.

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