Two marketers explain why growth advice from the past decade created unprofitable companies. Many startups spend 50% of their venture capital on Google and Facebook ads, betting on paid acquisition instead of building real demand. This demand capture model is costly and often unsustainable.
Chapters
most of the stuff that was published about how to grow in marketing in the last like 10, 15 years basically led to unprofitable, bloated companies.
So the question, of course, is why? Now, here's the answer most people give: product. There's something about their product they got wrong. Most people in Silicon Valley and, and in many other parts of business fundamentally believe that what we're doing here is if we build a better product and a better brand and the world sees that we're better, we're We're going to win. And to your point on marketing, here is the unquestioned, undiscussed, unconsidered choice that almost every marketer, creator, and entrepreneur makes. We are going to play a game called demand capture. And in many cases, we're going to use Google to get that done. And we see startups who spend upwards of 50% of their venture capital on Google and Facebook ads doing demand capture. That is to say,