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Y Combinator Cast

02/13/25

@ Y Combinator

Spending money on ads at an early stage can be tempting, but it often leads to outsourcing customer understanding instead of building direct relationships with them.

Video

The Right (And Wrong) Way To Spend Money At Your Startup

@ Y Combinator

The Right (And Wrong) Way To Spend Money At Your Startup

02/13/25

Related Takeaways

Brad Flora

07/08/22

@ Y Combinator

Many founders mistakenly believe that spending on marketing, especially through ads, will guarantee growth, but this often leads to wasted resources without learning valuable lessons.

Y Combinator Cast

05/07/22

@ Y Combinator

Increasing ad spend to meet growth targets can backfire, as it often leads to longer payback periods for customer acquisition, making it harder to sustain growth.

Y Combinator Cast

07/08/22

@ Y Combinator

Investing heavily in brand advertising and sponsorships can be tempting, but it often doesn't yield the expected returns, especially for early-stage startups without established brands.

Ooshma Garg

09/08/18

@ Y Combinator

I found that when starting out, you can't just throw money into ads; instead, it's about reaching micro groups and building relationships with local businesses to promote your service.

Gustaf Alströmer

08/16/19

@ Y Combinator

Don't start online marketing until you have paying customers; many founders make the mistake of investing in ads too early.

Y Combinator Cast

08/27/22

@ Y Combinator

Many startups think they can rely solely on self-serve flows and ads for sales, but this approach often overlooks the need for direct sales efforts and effective messaging.

Y Combinator Cast

05/07/22

@ Y Combinator

Founders often mistakenly believe that spending more money will help them achieve product-market fit faster, leading to frustration and distraction from their core objectives.

Brad Flora

02/13/25

@ Y Combinator

Founders often overspend because they haven't realized that their product isn't what customers want yet, leading them to chase after growth without understanding their market.

Y Combinator Cast

03/22/24

@ Y Combinator

Founders often forget to focus on acquiring their first customer, instead preparing for scaling and hiring prematurely.