Why So Many Consumer Companies End Up Pivoting to B2B
Noah argues B2B is an easier path to an incremental, sustainable business than pure consumer. The reason is the feedback loop: whether people will pay is a far faster signal than trying to build enough consumer reach to later slap ads on it. Pure consumer is a swing-for-a-home-run bet where you don't know if it's working along the way.
- Willingness-to-pay is a much faster signal than large-scale consumer reach
- The ad-supported consumer path is a home-run bet with no signal along the way
- B2B makes incremental, provable business-building easier
- Both Foursquare and Slack are examples of the consumer-to-B2B arc
“the feedback something that you get from are people willing to pay for the product that you're building is so much faster than can I…”