Growth Newsletter #257

We see it a lot: founders proudly tell us about their 10-channel marketing strategy.

They're writing tweets, publishing blog posts, running Facebook ads, starting podcasts, launching email newsletters, all at once.

Their logic seems sound: more channel = more exposure = more sales.

But here's what actually happens: they burn through capital, spread their team thin, and achieve passable results across all channels vs. explosive growth in one channel. They end up digging a bunch of shallow holes, none of them deep enough to strike water.

The reality? Focus often beats diversification in early-stage growth.

Why Diversification Works for Your 401(k) but Not Your Startup

In personal finance, we're taught that diversification is king. Spread your investments across many stocks to reduce risk. Makes sense when you have 30 years until retirement.

But your startup doesn't have 30 years. You probably have 6-12 months of runway.

You don't need 10% annual growth. You need explosive growth, fast.

To achieve that, you have to concentrate on the channels that are most likely to work for you, and cut all the rest.

The Hidden Cost of "Doing Everything"

A lot of startup teams simply under-estimate what it takes to launch and sustain a growth channel at a high-level (i.e. do it well).

To highlight this point, let's break down what launching just ONE channel properly looks like. Take Facebook ads, for example:

Prepare for launch:

• Conduct market research
• Design ad creatives
• Write compelling copy
• Set up your ad account
• Build campaigns
• Configure tracking and pixels
• Create optimized landing pages

Launch:

• Invest at least $2,000/month (minimum for meaningful data)
• Monitor performance daily
• Optimize continuously

Iterate:

• Create new ad variants
• Test different audiences
• Scale budget to $5-$10k/mo
• Analyze results
• Trouble-shoot when ROAS crashes due to budget scaling
• Rinse and repeat

Now imagine trying to do this for five channels simultaneously. Your costs just went up 5x. Your attention is divided 5x. Your team is stretched 5x thinner.

The result? Five mediocre channels instead of one great one.

Even if you find a channel that works after six months of this scattered approach, you've likely burned through a significant chunk of capital, leaving you with too little cash to properly scale the winner.

The Compound Effect Nobody Talks About

Here's the thing. Channel success isn't linear, it's exponential. The difference between giving a channel 20% effort and 100% effort isn't 5x results. It's often 10x, 15x, 20x.

Why?

Because every channel has a learning curve. And that curve can be steep.

• Month 1: You're losing money, learning the platform
• Month 2: You're breaking even, finding your audience
• Month 3: You're profitable, ready to scale

But when you're juggling 5 channels, you never get past Month 1 on any of them.

The worst part? You're highly susceptible to false negatives. Channels that WOULD have worked if you'd given them proper focus and budget can look like failures. You'll never know what could have been.

Focus Is Your Competitive Advantage

The companies that win aren't the ones doing the most things. They're the ones doing the right thing, repeatedly, until they've extracted every ounce of value from it.

Test quickly to find your 1-2 channels that work, then squeeze out all you can. Even if your incremental CAC grows as you saturate a channel, so long as ROAS is profitable, keep rinsing and repeating.

Only when you've truly maxed out a channel should you add another.

This isn't about being conservative. It's about being strategic. In a world where everyone's trying to do everything, depth beats breadth every time.

– Kevin

P.S. Want to learn how to identify which channels are right for YOUR business?

We dive deep into channel selection, testing frameworks, and scaling strategies in our Growth Program. We'll show you how to identify the 1-2 channels with the highest probability of success for your specific product and market.

​Check out the Growth Program →​