Glossary
What is distribution for a startup?
In startups, distribution is how a product gets in front of the people who'll use and buy it: search, directories, communities, content, partnerships, app marketplaces, sales and word of mouth. A common saying is that most startups fail from poor distribution rather than poor products.
Main channels for software
| Channel | Speed | Lasting? |
|---|---|---|
| Launch platforms | Fast spike | No |
| Directories and marketplaces | Days to weeks | Yes |
| SEO and content | Months | Yes, compounding |
| AI search | Months | Yes |
| Communities | Fast | While you participate |
| Partnerships and integrations | Months | Yes |
| Paid ads | Immediate | Only while paying |
| Sales | Slow per deal | Yes |
One channel usually wins
Peter Thiel argued in Zero to One that distribution follows a power law: one channel tends to beat all the others. Early on, test several cheaply, then double down on what works.
Starting distribution early
Directories and launch platforms are among the few channels available before you have content, links or an audience. They bring first users and links that help later channels like SEO and AI search.
Example
A founder tests five channels in her first three months. Directories bring steady trickle sign-ups, Reddit brings two spikes, SEO is slow, and an integration marketplace listing brings the most paying users. She builds two more integrations.
FAQ
What's the best distribution channel for SaaS?
It depends on your buyers. Test cheaply and measure paying customers, not visits.
Is distribution more important than product?
Both matter; a great product without distribution isn't found.
How early should I think about distribution?
Before building, ideally.