Why ChatGPT will be the next big growth channel (and how to capitalize on it) | Brian Balfour (Reforge)
1. Play the Emerging Distribution Game
Don’t trick yourself into thinking you can opt out of new distribution platforms like ChatGPT, as competitors will leverage them and customer expectations will change, making it essential to participate.
2. Act Early on New Platforms
Recognize that new distribution cycles are getting shorter, meaning you have a smaller window to capitalize on emerging platforms before they become saturated or close down.
3. Startups: Go All-In on One Platform
If you are a startup with scarce resources, choose one emerging distribution platform and commit fully to it, rather than spreading your bets across multiple channels.
4. Late-Stage Companies: Place Multiple Bets
If you are a late-stage company, you can afford the luxury to place multiple bets on emerging distribution platforms and wait to see which one becomes the clear winner before fully investing.
5. Anticipate Platform Closure
Understand that new distribution platforms will eventually close for control and monetization; plan an exit strategy to avoid being trapped by their restrictions or costs.
6. Evaluate Platform Potential
When choosing a new distribution platform, prioritize those with high user retention and depth of engagement, good user quality and monetization potential, a clear value exchange, and significant pure scale.
7. Identify AI Platform Moat
Focus on platforms that prioritize context and memory as their moat, as these enable better, more personalized outputs and drive a flywheel of increased usage and retention.
8. Prepare for Platform Launch
Be ready to pivot your strategy on a dime and go all-in when a new distribution platform officially launches its third-party developer program, as quick capitalization is key.
9. Form Preferred Relationships
If possible, try to establish preferred relationships with emerging platform owners (e.g., OpenAI) to gain early access and insights into their third-party developer programs.
10. Implement Hard AI Constraints
Drive AI adoption by implementing hard constraints within your company, such as benchmarking team sizes to be one-fifth of competitors or requiring AI proof before new headcount.
11. Address AI Adoption Anchors
For employees resistant to AI transformation, set clear deadlines for adaptation or plan for their exit, as a cohesive culture is crucial for successful company-wide change.
12. CEOs: Understand AI Adoption Reality
As a CEO, actively get to the ground floor to understand the true state of AI adoption and usage within your company, as executive mandates often don’t translate into widespread implementation.
13. Identify & Attack AI Bottlenecks
Ruthlessly identify and address the slowest parts of your AI adoption system (e.g., IT, legal, procurement, or specific roles like product managers) to ensure that accelerating one part doesn’t just shift the bottleneck.