My biggest takeaway from the Grow Seminar is the importance of “Grow Better” over “Grow Faster”. As a direct marketer in the Internet space, we are constantly obsessed with hitting big numbers, and to achieve that, we adopt practices that give instant ROI but at the expense of the business’s profitability long term.
After hearing Hubspot’s COO, JD Sherman and his talk on how Hubspot went from Startup to Unicorn to MNC in 10 years… perhaps it’s wise to focus on growing better vs faster.
“Grow Better vs Grow Faster”
One is durable, the other is not.
One is sustainable, the other is not.
One is long term thinking, the other is not.
One deploys capital efficiently, the other is not.
“Grow Faster” = Paid ads or affiliates. A dollar spent today brings in a customer or a dollar back almost immediately. Rate of return on capital is rather linear.
“Grow Better” = Invest in inbound marketing. A dollar spent today has the potential of bringing 10-20 customers. Slow return at the beginning, but rate of return on capital invested is exponential
“Grow Faster” = “Scorched earth” business model. Once a lead/customer enters your mailing list or ecosystem, you plummet him with offers to realize the LTV of the customer asap.
“Grow Better” = You add value to your leads and customers before extracting value by making offers.
“Grow Faster” = You make big, hype promises to close the sale, only to have the customer disappointed.
“Grow Better” = You educate your lead to make the sale. The customer is informed and empowered and has no buyer’s remorse.