Selling Tools Vs Ways #strategy #startups #sales #entrepreneurship

7 Apr 2024 · 1 min
0:55

In this short talk, the speaker examines the fundamental difference between marketing a SaaS product as a generic "tool" that promises cost or efficiency gains and positioning it as a specific "way"—an opinionated workflow embedded in the software. When a company explicitly sells a way, it is essentially asking customers to adopt a particular process, and the product’s value is tied to the quality of that process. The speaker notes that this approach can succeed when the way is compelling and clearly communicated, citing Linear as an example of a company that sells a way effectively. Conversely, if the way is implicit, unconvincing, or requires a change customers are unwilling to make, the product reverts to a generic tool narrative, which is harder to differentiate and sell. The overall message is that founders must assess whether their SaaS offers a distinct, valuable way of working and be prepared to sell that way explicitly, otherwise they face a tougher market.

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