Why Building an Audience Can Hurt Your Startup: Focus on Network Instead

The Pitfalls of Building an Audience for Your Startup

Many aspiring entrepreneurs believe that building a large audience is the key to startup success. They look at figures like Peter Levels and Mark Lou, who have built solid businesses leveraging their social media followings, and assume this is the path to follow. However, these success stories are the exceptions, not the rule. For every Peter Levels or Mark Lou, thousands of others fail to turn their audience into a viable business.

The Curse of the Audience

Building an audience can actually become a major distraction for startup founders, taking valuable time and energy away from core business activities. This phenomenon has been dubbed "the curse of the audience."

Here are some of the key issues with focusing on audience building:

• It's extremely time-consuming
• The audience often doesn't match your target customer
• It can give a false sense of traction and progress
• It distracts from product development, marketing, and sales

For example, let's say you manage to build an audience of 50,000 YouTube subscribers or Twitter followers. How many of those people actually need the niche B2B software you're developing? The overlap is likely to be very small.

Even worse, having a large audience can lead to misleading early interest in your product. When you announce what you're working on, you may get hundreds of signups from people who just want to follow your journey, not actually use your product. This happened to Rob Walling when he was building his email marketing startup Drip. The initial interest from his podcast audience didn't translate into actual customers.

Why You Should Build a Network Instead

Rather than trying to amass a large, general audience, B2B SaaS founders should focus on building a targeted professional network in their industry. Here's why this approach is more effective:

1. Access to Potential Customers

A network of professionals in your target industry gives you direct access to potential customers. This allows you to:

• Get honest feedback on your product ideas
• Understand pain points and needs
• Conduct user testing
• Find early adopters

2. Industry Insights

Connecting with others in your space provides valuable industry knowledge:

• Trends and emerging opportunities
• Competitive landscape
• Regulatory issues
• Best practices

3. Partnerships and Collaborations

A strong network can lead to beneficial partnerships:

• Integration opportunities
• Co-marketing initiatives
• Referral arrangements
• Strategic alliances

4. Credibility and Social Proof

Being connected to respected figures in your industry lends credibility to your startup:

• Testimonials and case studies
• Speaking opportunities
• Media mentions
• Investor introductions

5. Talent Acquisition

As you scale, your network becomes a valuable resource for hiring:

• Finding skilled employees
• Getting referrals for key positions
• Building an advisory board

How to Build an Effective Professional Network

Building a strong professional network takes time and effort, but it's a more focused and productive use of a founder's limited resources compared to general audience building. Here are some strategies to grow your network:

Attend Industry Events

In-person events are one of the best ways to make meaningful connections:

• Conferences and trade shows
• Meetups and local gatherings
• Workshops and seminars

Pro tip: Before attending events, research who will be there and engage with them on social media. This makes in-person introductions much smoother.

Leverage LinkedIn

LinkedIn is the premier platform for professional networking:

• Optimize your profile
• Join relevant groups
• Share insightful content
• Engage with others' posts
• Use LinkedIn's advanced search to find potential connections

Host Your Own Gatherings

Organizing events positions you as a connector in your industry:

• Informal meetups
• Dinner gatherings at conferences
• Online webinars or AMAs
• Industry hackathons

Start a Niche Podcast or Video Series

Creating content focused on your industry allows you to connect with thought leaders:

• Interview experts in your field
• Discuss industry trends and challenges
• Share your own insights and experiences

Contribute to Industry Publications

Writing for respected outlets builds your credibility:

• Guest blog posts
• Trade magazine articles
• Whitepapers and research reports

Offer Help and Value

Be proactive in supporting others in your network:

• Make introductions
• Share resources
• Provide feedback and advice
• Celebrate others' successes

Follow Up and Nurture Relationships

Consistency is key in network building:

• Send personalized follow-ups after meeting someone
• Check in periodically with valuable connections
• Remember important details about your contacts
• Look for opportunities to reconnect

Leveraging Your Network for Business Growth

Once you've built a solid professional network, here are some ways to leverage it for your startup's growth:

Customer Development

Your network becomes an invaluable resource for refining your product:

• Conduct user interviews
• Run beta testing programs
• Get feedback on new features
• Understand customer workflows and pain points

Sales and Marketing

A strong network can significantly boost your go-to-market efforts:

• Get warm introductions to potential clients
• Secure case studies and testimonials
• Collaborate on co-marketing initiatives
• Gain insights into effective messaging and positioning

Fundraising (if applicable)

For startups seeking investment, a network can be crucial:

• Connect with potential investors
• Get introductions to VCs and angels
• Secure advisory roles from industry experts
• Gain social proof to strengthen your pitch

Recruitment

As you scale, tap into your network for hiring:

• Find qualified candidates through referrals
• Get insights on potential hires
• Build a strong advisory board

Strategic Partnerships

Your network can open doors to valuable partnerships:

• Identify integration opportunities
• Explore channel partnerships
• Find complementary products for bundle deals

When Building an Audience Makes Sense

While this article has focused on why B2B SaaS founders should prioritize network building over audience building, there are certain types of businesses where having a large audience can be beneficial:

1. Information Products and Courses

If you're creating educational content or online courses, a large audience can directly translate into customers.

2. Content Creators and Influencers

For those monetizing through sponsorships, affiliate marketing, or direct fan support, audience size is crucial.

3. Community-Based Businesses

Platforms that rely on network effects benefit from having a large user base from the start.

4. Direct-to-Consumer (DTC) Products

Brands selling physical products to consumers can leverage a large audience for marketing and sales.

5. Media and Publishing

Businesses relying on ad revenue or subscriptions need a sizeable audience to be viable.

Conclusion: Focus on Quality Connections

For most B2B SaaS startups, the time and energy required to build a large audience simply isn't worth the potential benefits. Instead, founders should focus on building a high-quality network of professionals in their target industry.

Remember these key points:

1. Quality over quantity: A smaller network of relevant connections is more valuable than a large, unfocused audience.
2. Be deliberate: Network building requires intentional effort and stepping out of your comfort zone.
3. Provide value: Focus on how you can help others, not just what you can gain.
4. Stay consistent: Building relationships takes time and ongoing nurturing.
5. Leverage wisely: Use your network for feedback, introductions, and strategic growth, not just sales pitches.

By shifting your focus from audience building to network building, you'll create a foundation of relationships that can support your startup's growth for years to come. This approach may require more upfront effort, but it will yield more meaningful and actionable results in the long run.

Remember, successful entrepreneurship often comes down to who you know, not just how many people know you. Invest in building genuine professional relationships, and you'll be well-positioned to navigate the challenges of startup life and seize opportunities as they arise.

Article created from: https://www.youtube.com/watch?v=n_CEYs1TUiE