Full transcript
Why the first 10 are different
0:09Hi, I'm Max, a visiting partner here at
0:11Y Combinator. Today I want to talk to
0:13you about something I constantly hear
0:15from YC founders, which is, "I think I
0:17know who my target customer is. Now, how
0:19do I actually go find them and start a
0:22conversation?" YC Startup School already
0:24released a lot of good advice on the
0:26strategy of early stage sales, doing
0:28things that don't scale, founder sales,
0:31making sure to charge for your product.
0:33That advice is all great and you should
0:34definitely internalize it, but today I
0:36want to talk about the tactics of
0:38getting your first 10 customers. A few
0:40weeks ago, I made a post internally on
0:42Bookface, YC's internal social network,
0:44asking founders how they actually got
0:46those first 10 customers. Dozens of
0:48founders responded and wanted to share
0:49their experience. This video is a
0:51compilation of all my learnings. So,
0:53let's get started. Before you even touch
Where does your buyer actually spend their time?
0:55a tool or pick a channel, you need to
0:57answer one question. Where does your
0:59target customer actually spend their
1:00time? Most founders default to cold
1:03email and LinkedIn outreach. This is
1:04because it's easy. You can do it from
1:06your laptop. It feels like you're
1:08working and there's a ton of automation
1:09and tools that you can set up for all
1:11this. And for some buyers, this actually
1:13works fine. If you're selling sales
1:14software to a sales leader, for example,
1:16email and LinkedIn actually make a lot
1:18of sense. The buyer who is a sales
1:20leader lives on a computer. They spend a
1:22ton of time on LinkedIn. It's going to
1:24work for them. But a lot of times you
1:26might be selling to a school district
1:27administrator or property manager, an
1:30insurance agent or a truck dispatcher. A
1:32lot of people don't sit on a laptop all
1:34day and a lot of people don't have their
1:36inbox as the most important surface in
1:38their work life. You can blast them with
1:40cold email all you want and you're just
1:42going to conclude that outbound sales
1:43doesn't work for you. One recent YC
1:45founder spent months on email and
1:46LinkedIn outreach to a legacy industry.
1:48His open rates and reply rates were
1:50terrible. When he finally decided to
1:52actually go to an industry trade show
1:54and walk the floor, he closed more in 3
1:56days than he had in 3 months of sending
1:58cold emails. His customers were on job
2:00sites and sometimes they went to
2:02conferences. They picked up the phone.
2:04In hindsight, any amount of time he
2:05spent refining the subject line or his
2:07email copy ended up being a waste of
2:09time. So before you do anything else,
2:10sit down for an hour and answer some
2:12basic questions about your buyer. What
2:14does their average day look like? How
2:15often do they check their email? Do they
2:17go to conferences? And which ones, if
2:19so? Are they on Reddit? Are they on
2:20LinkedIn? Do they pick up the phone? Do
2:23they mostly ask their friends for
2:24recommendations for new services and
2:25software to use? Or maybe there are
2:27industry newsletters that they read. If
2:29you can't answer most of these questions
2:31concretely yet, that's a sign you
2:33haven't spent enough time with real
2:34customers. Go fix that before anything
2:36else. All right, now it's time to
2:38actually start talking to customers.
2:39Before you touch any email automation or
2:41prospecting tool, you have to start with
2:43people you already have some connection
Customers 1–3: work your warm network first
2:45to. The first two or three customers,
2:47almost without exception in these
2:48founder stories, came from one of these
2:50sources. Friends in the industry, former
2:53colleagues, classmates from school, or
2:55more generally people one introduction
2:57away. The reason your warm network
2:58matters isn't that intros are some magic
3:01sales trick. It's that the people buying
3:02your product early are buying because
3:04they trust you as a founder, not just
3:07because of the quality of the product.
3:08If someone's going to take a bet on a
3:10new product from a new company, they at
3:12least need to trust the person building
3:13it. Your first degree and second degree
3:15network are the easiest people to take
3:17that bet on you. So before you go
3:19outbound, work through a few sources in
3:21order. First, your personal network.
3:23Former colleagues, classmates, friends
3:24in the industry. These people will trust
3:26you the most. So talk to them first.
3:29Next is your secondderee LinkedIn
3:31connections. Look at who your
3:32connections know and ask for warm
3:33intros. One recent YC founder told me
3:35she got intros to about half of the
3:37customers she closed during her YC batch
3:39via LinkedIn intros. Third, there are a
3:41bunch of AI powered network search
3:43tools. Happenstance, for example, is a
3:45recent YC company that lets you search
3:47across your whole extended network in
3:48natural language. You can ask things
3:50like find people who work on
3:52notification systems at big companies
3:54and it'll surface relevant people from a
3:56much wider net than you can scroll
3:57through manually. When you ask for an
3:59intro, be specific. Tell them who you
4:01want to meet, why they specifically
4:02would care, and what to say in the
4:04forwarded email. The easier you make it
4:06for them, the more likely the intro
4:08actually happens. One pattern I want to
4:09call out, prospecting tools only start
4:12to matter once you have 10 to 20 quality
4:14customers. Tons of founders spend weeks
4:16setting up outreach tools when they
4:18actually have a lot of secondderee
4:19connections they haven't messaged yet.
Get in the room: show up in person
4:21If you haven't worked your network,
4:22you're skipping the lowest hanging
4:23fruit. One of the most surprising things
4:25that came up in those YC founder stories
4:27is that so many of them to close their
4:29first few customers actually showed up
4:31in person. They didn't just settle for
4:32getting on a Zoom, they got into a room.
4:35They made it their mission to be in the
4:36same room as the buyer. A lot of people
4:38don't want to do this tactic. It's
4:39slower. It's awkward. It might cost
4:42money if you have to travel somewhere
4:43and you might get rejected to your face
4:45in real time. But it also happens to
4:47work better than basically anything
4:48else. First, fly out to close them. One
4:51recent YC founder flew to a single
4:53executive buyer four weeks in a row. The
4:56buyer kept rescheduling, but he kept
4:58showing up and eventually closed them.
4:59Another founder regularly showed up at
5:01customer offices uninvited and got asked
5:03to leave most of the time. One time he
5:06actually flew to Hawaii to meet a
5:07customer who kicked him out after 8
5:09minutes of conversation. And that
5:10customer through some persistence became
5:12one of his biggest accounts. Another
Conferences and founder dinners
5:14learning was that small conferences tend
5:16to work really well. The conversion rate
5:18from one real conversation at a small
5:20industry specific conference can be much
5:22higher than trying to cold email that
5:23same person. Here's a mini playbook on
5:25conferences that multiple founders used.
5:28You can set up a calendarly and put
5:2915-minute slots back to back across
5:31every day of the conference. Before the
5:33event starts, email the attendee list a
5:35couple of times and fill as many slots
5:37as possible. Email them again during the
5:39event to catch the people who didn't
5:41open the first email. Stack meetings the
5:43whole day and that'll make sure you get
5:44the most out of the conference. Another
5:46tactic is micro events. A few founders I
5:49spoke to ran founder dinners or happy
5:51hours for their ideal customer profile.
5:53Something like 6 to 10 people, maybe $50
5:55to $100 ahead. A lot of founders
5:58consistently said that this converts way
5:59better than large events. Once someone's
6:01eating dinner with you, it's very
6:02unlikely they're going to ignore your
6:04email afterwards, and sometimes they'll
6:06even go out of their way to help you.
6:07For the first 10 customers, there really
6:09is no tool that can replace being in the
6:11same room as your buyer. If you're
6:13building a consumer product or a product
6:14for small businesses, there's often a
Find where your customers complain online
6:16place online where your future customers
6:17are already complaining about the
6:19problem you solve. Your job is to find
6:21it and then show up there as a real
6:23person. For a lot of founders, that
6:24place has actually been Reddit. A common
6:26Reddit story looks something like this.
6:28A founder posts a video of their product
6:29on Reddit. A lot of the comments start
6:31ripping them apart, and the person
6:33thinks their launch is a disaster. But
6:35then there's a couple hundred lurkers,
6:36the people who never would comment, who
6:38might quietly sign up for their product.
6:40Another founder told me Reddit was the
6:42source of his first 10 customers. He'd
6:44find old threads where people complained
6:46about the exact problem he was solving
6:48and he would DM every commenter one by
6:50one. A healthcare founder said that
6:52responding to Reddit and Facebook
6:53complaints was basically her whole job
6:55for a couple of months. She was doing
6:56two to five posts a day. She did get
6:58shadowbanned from a few subreddits along
7:00the way, but she also got a bunch of
7:02customers. This principle is broader
7:03than just Reddit. You've got to find the
7:05place where the pain is being expressed
7:07in public. For consumer products, that's
7:09often Facebook groups, Discord, or
7:11YouTube comments. For some B2B niches,
7:13it could be industry specific forums or
7:15trade association message boards. The
7:17nice thing about Reddit is that threads
7:19get pulled into Google search and
7:20persist for years. So, the work you do
7:23today will keep paying off for a long
7:25time. Okay, you've worked your warm
7:27network. You've showed up in person.
7:28You're active in the communities where
How to go outbound: Apollo, Clay, and LinkedIn
7:30your customers complain. And at some
7:31point, you're going to need to go
7:32actually outbound the people who you
7:34don't know. Your job is to find
7:36companies that match your ideal customer
7:37profile, find the right person at each
7:39one, find their contact info, and reach
7:41out. Here, I'll talk about a few tools
7:43that are most common and that you might
7:45want to try. Apollo was the most common
7:47starting point for the founders I talked
7:48to. It's basically a lead database with
7:50email finding capabilities and a basic
7:52sequencer. Their free tier is generous
7:54enough for you to build your first list.
7:56For most founders at this stage, Apollo
7:57alone is enough. Clay is another really
8:00popular tool. It lets you build research
8:02and enrichment workflows with AI on top
8:03of your prospect list. It starts to
8:05matter when you want to qualify leads on
8:07something very specific like what
8:09software your prospects use, who's been
8:11hiring, or who posted about a topic
8:13recently on LinkedIn. LinkedIn Premium
8:15is the richest source of fresh
8:16professional data. Often times, you'll
8:18want to send a connection request
8:19without a message followed by a short DM
8:22once they actually accept you. One
8:23recent YC founder mentioned that he got
8:25his biggest customer this way and that
8:27was his highest converting cold outreach
8:29channel. Great. Now you have your
8:30outbound lead list. It's time to decide
8:32how you're actually going to communicate
8:34with these prospects. One of the most
Frame outreach as advice
8:36interesting patterns I saw is that for a
8:37lot of founders, the most effective
8:39early outreach wasn't actually framed as
8:41a sales pitch. It was framed as
8:43something else. Maybe asking for advice
8:44or for mentorship or asking for a
8:47product review or for a whiteboard
8:48session. To be clear, you shouldn't
8:50mislead people. If you're not actually
8:52open to learning from them and you're
8:54just trying to disguise a sales call,
8:55don't do this. But if you genuinely want
8:57to learn and invest in building a
8:58relationship with these people, this
9:00framing can often be a real foot in the
9:02door. Here's a few examples. One founder
9:04reached out to dozens of CEOs in his
9:06space asking if they'd be his mentor.
9:07His messages were short, they were real,
9:09and most people were flattered. A couple
9:11accepted, and a few of them eventually
9:13became customers. Another founder talked
9:15to 200 salespeople before her team even
9:17built out the product. Every week, she'd
9:19max out her LinkedIn connections with
9:21one specific hypothesis she was testing
9:22that week. basically user research on
9:25steroids. She said about 50% of her
9:27connection requests were accepted and
9:29she converted 20% of those into calls.
9:31By the time she had a product, she
9:33already had a pipeline of people who
9:34told her exactly what they needed and
9:36she could go reach out to them. A
9:37DevTools founder offered startups free
9:40whiteboarding sessions on their agent
9:41architecture and then offered to open up
9:43a shared Slack channel so he can help
9:44them implement it. The trick was the
9:47architecture just happened to require
9:48his exact product. And here's one really
9:51creative variation from another founder.
9:53He was selling to lawyers and he
9:55actually offered to pay them $100 to
9:57$200 an hour, basically a portion of
9:59their hourly fee in exchange for product
10:01feedback. About 30% of people he reached
10:03out to accepted that offer. The math
10:05sounds expensive, but the conversion
10:07rate was high enough that his customer
10:08acquisition cost ended up being quite
10:10reasonable. This kind of approach can
10:12especially work in markets with high
10:13contract values. Once you've decided on
10:15your framing, it's time to actually
10:16write some outreach copy. In my
10:18experience, the exact copy matters less
Writing outreach that sounds human
10:20than people think, but a few things
10:22really do matter. First, keep it under
10:2475 words. Long emails tend to just get
10:27ignored, and they'll assume you used an
10:28LLM to write it. Second, the single most
10:31important line is a clear call to
10:32action. What do you actually want from
10:34this person? Do you want to reply? Do
10:36you want to call? Are you offering a
10:3815-minute demo? Make it really clear.
10:40Otherwise, they'll assume the worst.
10:42Basically, that you're going to eat up a
10:43bunch of their time. Third, there's a
10:45very easy test that a lot of people
10:46don't do to check whether the email
10:48sounds human or not. Find a friend and
10:50just read your email out loud to them.
10:52If anything sounds like something you
10:53wouldn't actually say to a real person,
10:55rewrite that part. This is basically a
10:57one minute sanity check and it'll help
10:59you remove most the AI sounding lies
11:01that end up ruining cold emails. One
11:03last tip here. Some founders said that
11:05their highest converting outreach gave
11:07the prospect something before asking for
11:09anything. For example, an API security
11:11company can do a quick vulnerability
11:13scan on the prospect's public website
11:15and show them what they found. If you're
11:17a mobile onboarding tool, you can walk
11:19through the prospect's app and send a
11:20couple of specific suggestions. One
11:22example from the YC founders I talked to
11:24was a compliance startup that prepared a
11:26short audit note specific to that
11:28prospect's product. And then they asked
11:30each one for a meeting to go into more
11:32detail. Now, this kind of work is not
11:34sustainable at scale. And that's kind of
11:36the point. You're not trying to do this
11:38at scale. you're trying to get your
11:39first 10 customers. 20 minutes of work
11:41before asking for 30 minutes of
11:43someone's time is actually quite a
11:44reasonable trade. And one last thing
11:46here, don't forget to follow up.
11:48Something like three or four times over
11:49a couple weeks is perfect. I want to
11:51leave you with one frame that I think is
11:53a really useful way to think about this
11:55whole phase. Customers 1 through three
11:58almost always come from your personal
12:00network. Again, friends, former
12:02colleagues, people one intro away. In my
12:04founder survey, there were basically no
12:06counter examples to this pattern of how
12:08people found their first few customers.
12:11For customers 4 through 10, they come
12:13from doing things that don't scale.
12:14Flying out to customers, sending Reddit
12:16DMs, a small dinner for six prospects,
12:19personalized LinkedIn DMs, or free
12:21consulting sessions. This part is going
12:23to be tedious and it's going to be
12:24manual and it's a really good way to
12:27learn before you automate. Then
12:29customers 10 through 50 are where the
12:31playbook starts to shift. By this point,
12:33you'll probably have a refined pitch,
12:35case studies, and you'll have a really
12:37good grasp on what resonates about your
12:38value prop. And that's when Apollo,
12:40Clay, email sequences, all these higher
12:43volume outreach tools actually start to
12:45make sense. Now you have a message
12:47that's worth scaling and will get you
12:48results. So, as a reminder, the reason
12:51this messy middle phase from 4 to 10
12:53customers works is that you personally,
12:55the founder, are doing it. When a
12:57founder shows up at someone's office,
12:59DMs someone on Reddit, or sends a really
13:01researched email that only somebody who
13:02studied this problem knows about, it
13:04signals something no automation tool is
13:06going to be able to fake. That you care
13:08enough about this problem to put your
13:10own time into it. That's your advantage
13:12right now. It's the one thing you have
13:14that established companies in your space
Recap: The first 10 come from you
13:16won't. So, you have to really lean into
13:18that. So, in conclusion, the first 10
13:19customers will likely not come from a
13:21tool. They're going to come from you
13:23manually tapping into your network and
13:25showing up. You don't have to be an
13:27amazing salesperson to do this. You just
13:29have to be willing to do the unscalable
13:31things that most salespeople and
13:32founders are not willing to do. Good
13:34luck and I can't wait to see what you
13:36build.