B2B Focused Following

Garry Tan suggests that B2B founders should build their own audience and become creators, as it's a more effective strategy than paying for ads through big tech platforms.

Key Points:

• Why Build an Audience:

  • Avoid paying expensive toll to big tech companies (Google, Meta) for customer acquisition
  • Second price auction mechanisms make paid advertising increasingly expensive
  • More valuable for B2B because you need smaller, more targeted audience

• Current Market Reality:

  • Big tech has monopoly on eyeballs
  • Companies must either pay for distribution or build their own audience
  • Ad networks make customer acquisition costs continuously rise due to perfect marketplace dynamics

• Distribution Strategy:

  • Focus on creating valuable, original content
  • Leverage platforms that give away distribution:
    • YouTube algorithm
    • X (Twitter) algorithm
    • TikTok (especially good for new creators)
  • Build authentic connection with target customers

• Business Impact:

  • More cost-effective than paid advertising
  • Creates sustainable, owned distribution channel
  • Particularly valuable for B2B companies targeting specific industries or decision-makers

This approach represents the "purest form of alpha" in current market conditions, allowing companies to build direct relationships with potential customers without paying increasingly expensive advertising costs.