Cold start problem
What is the cold start problem?
The cold start problem describes products whose value depends on having other users, such as marketplaces, social networks and communities. With few users, there is little value, which makes it hard to attract the first users.
Common solutions are to start in a very small market where density is achievable, to seed one side yourself, or to offer single-player value before network value.
Why the cold start problem matters
Recognising a cold start early changes the launch plan: concentrate on one niche, community or city until it works there.
Related marketing terms
A beachhead market is a small, specific first market a startup aims to dominate before expanding to neighbouring markets.
Early adopters are the first customers to try a new product, accepting rough edges because the problem matters to them and they like new things.
Community-led growth is growing a business through a community of users who help, teach and recommend each other, with the company as host.
A viral loop is a cycle where using a product brings in new users, who use it and bring in more, such as invites or shared content.