#37 — Your first B2C customers (Marketplace Edition)

Note: This is a follow-up to a previous note on your first 100 B2C customers.§

Why it matters: New platform businesses face a chicken-and-egg problem - you need both service providers and customers, but which do you get first?§

The big picture: Research on Uber, Airbnb, and Etsy reveals a clear pattern: focus on the supply side first (the "eggs"), then focus on highly targeted acquisition before scaling.§

Three key strategies that work

1. Focus on supply first

• Airbnb hacked Craigslist to extract property owner contacts, then pitched them to list on their platform
• Uber started with professional black car drivers to ensure quality service
• Etsy scouted craft fairs nationwide to identify and recruit top-tier artisans

2. Create exceptional experiences

• Airbnb hired professional photographers for property listings - an unscalable but necessary step
• Uber began with premium black cars to guarantee quality before expanding to Uber X
• Quality suppliers lead to positive word-of-mouth, turning customers into marketers

3. Launch strategically

• Target cities and times with high demand and low supply
• Uber launched during holidays and major events when taxi demand exceeded supply
• Airbnb expanded to cities hosting conventions when hotel rooms were scarce
• This approach attracts early adopters who are more forgiving of initial flaws

Reality check: Your first 100 customers require different strategies than your next 100,000. Word-of-mouth works initially, but scaling requires more proactive digital marketing approaches.§

Bottom line: Get the right suppliers first, ensure quality experiences, and launch where demand exceeds supply. This creates the foundation for sustainable growth.§