The missing ingredient for selling marketing tools to local businesses
As a venture capitalist and entrepreneur, PeterThiel has been involved with some of the most dynamic companies to emerge from Silicon Valley in the past decade including facebook and PayPal.
Here is what he has to say about the missing link in marketing to small business:
“For a product priced around $1,000, there might be no good distribution channel to reach the small businesses that might buy it. Even if you have a clear value proposition, how do you get people to hear it?
The product needs a personal sales effort, but at that price point, you simply don’t have the resources to send an actual person to talk to every prospective customer. This is why so many small and medium- sized businesses don’t use tools that bigger firms take for granted. It’s not that small business proprietors are unusually backward or that good tools don’t exist: distribution is the hidden bottleneck.”