A tech startup usually starts with an idea. Rarely do they start with a market.Paypal started like this, with an idea of emailing money. But, as David Sacks (the COO and Product leader at the time) recalls, nobody was using it. So they discovered by accident that Paypal was used on Ebay. That market insight became the go to market strategy for Paypal.

Product first companies discover the market

Advertising is not scalable for a startup. So they have to come up with distribution tricks. This is a key innovation that startups need to come up with. Paypal had a few tricks:<ul><li>email virality. People got an email telling them they receive money and they had to sign-up to receive them. Also used by early LinkedIN.</li><li>ebay integration: ebay sellers could sign up with their ebay credentials and a Paypal link would be added automatically. Also used by Youtube. </li><li>signup referral bonuses: if you recommend someone else they would get $10</li></ul>

Distribution tricks

The first episode of #SquareOne with Romeen Sheth is dedicated to the fundamentals of building a generational business. Romeen Sheth and Kavita Gupta speak with David Sacks, Co-Founder of Craft & Founding COO of Paypal David has been a successful founder and investor for over two decades, building and investing in some of the most iconic companies in tech. David has invested in over 20 unicorns, including Affirm, Airbnb, Bird, ClickUp, Eventbrite, Facebook, Houzz, Lyft, OpenDoor, Palantir, Postmates by Uber, Reddit, Inc., Slack, SpaceX, Twitter, Uber, and Wish. For more episodes like this visit FINTECH.TV #business #tech #entrepreneur #building #startup

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The first episode of #SquareOne with Romeen Sheth is dedicated to the fundamentals of building a generational business. Romeen Sheth and Kavita Gupta speak with David Sacks, Co-Founder of Craft & Founding COO of Paypal

David has been a successful founder and investor for over two decades, building and investing in some of the most iconic companies in tech. David has invested in over 20 unicorns, including Affirm, Airbnb, Bird, ClickUp, Eventbrite, Facebook, Houzz, Lyft, OpenDoor, Palantir, Postmates by Uber, Reddit, Inc., Slack, SpaceX, Twitter, Uber, and Wish.

For more episodes like this visit FINTECH.TV


#business #tech #entrepreneur #building #startup

Startup Ideas with (David Sacks, VC & Co-Founder of Paypal)

Product first companies discover the market

Distribution tricks

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