Developer Marketing: The Startup Marketing Model

MKT1: A New Approach to Startup Marketing

MKT1 is a strategic marketing consultancy established by seasoned startup leaders, distinguished from traditional marketing agencies. The firm offers guidance to startups on marketing strategies, conducts recruitment and mentorship programs, and participates in angel syndicate investing. Additionally, MKT1 maintains a job board, a newsletter, and provides workshops specifically for marketing professionals.

Addressing Key Trends in the Startup Ecosystem

Founders Kathleen Estreich and Emily Kramer identify several significant shifts within the startup landscape. Contemporary young companies are securing larger funding rounds than ever before and are under increasing pressure to sustain rapid expansion. However, founders often prioritize technological and product development. This frequently results in marketing initiatives being implemented prematurely or belatedly, hindering a startup’s potential for growth. Kramer and Estreich aim to integrate marketing as a fundamental component of a company’s execution from its inception.

Estreich, with prior experience at Facebook, Box, Intercom, and Scalyr, and Kramer, formerly at Ticketfly, Asana, Astro, and Carta, were recommended to us based on survey responses seeking top growth marketers in the startup sector. (We encourage you to contribute your own recommendations by completing the survey.)

Insights from an Exclusive Interview

The following interview details their approach to recruiting startup marketers and advising founders on marketing strategies tailored to their specific needs, alongside other critical considerations for early-stage ventures.

(The following transcript has been condensed for brevity and clarity.)

Transitioning from Corporate Marketing to Entrepreneurship

TC: Having achieved success as marketers at prominent companies, what prompted your decision to establish your own marketing firm?

Estreich: The paths were somewhat different for each of us. I left Scalyr after the birth of my child, coinciding with the onset of the COVID-19 pandemic and the resulting uncertainty. Emily and I had maintained contact for several years, and over the past year, we began discussing our perspectives and observations. A prominent trend we noticed was that many companies, led by technically focused founders, lacked a clear go-to-market strategy and effective marketing support.

We realized our passion lay in collaborating with founders and early-stage companies, and we desired to dedicate ourselves to this full-time. We initiated this work last fall, and it has been incredibly rewarding. We’ve had the opportunity to work with numerous innovative companies and identify recurring patterns. A significant challenge is hiring – determining the right candidate, the optimal timing, and effective recruitment methods.

Kramer: My experience mirrors this to some extent. I was either the first or one of the first marketers at TicketFly and Asana, where I built a team of approximately 25 individuals. I thoroughly enjoy the process of team building, both at smaller and larger scales. I find the strategic puzzle of assembling a marketing team with diverse functions – encompassing hiring, strategy, and more – particularly engaging.

I subsequently joined a seed-funded company, Astro, driven by my passion for building. However, I encountered a common mistake: hiring a marketer who was too senior for the company’s current stage. Recognizing this, I moved to Carta, which at the time had 300 employees and a nascent marketing function. There, I built the marketing team from the ground up, but at a later stage of development.

I filed a lawsuit alleging claims for gender discrimination, retaliation, and wrongful termination. [Ed. TechCrunch coverage here]. Following such an experience, one naturally reevaluates priorities. Kathleen and I began advising companies together, and this advisory role has evolved into a comprehensive approach to building marketing functions for early-stage companies.

Focus on SaaS Companies

TC: Your firm primarily focuses on SaaS companies. Is there a specific reason for this specialization?

Estreich: This aligns with our collective experience. Since leaving Facebook, my work has centered on B2B SaaS companies, across various audiences and stages. I believe there’s substantial opportunity for innovation in marketing within the B2B SaaS sector.

Kramer: While our focus is SaaS marketing, our core strength lies in modern marketing, particularly self-service models and developer marketing. We believe developer marketing represents the future of our field, emphasizing value creation and treating individuals with respect.

Common Mistakes Made by Founders in 2021

TC: You’ve published extensively on early-stage marketing. What are the most frequent errors you observe founders making in the current environment?

Estreich: Often, companies either bring on marketing talent too early or too late. Crucially, the initial marketers are often the founders themselves, responsible for shaping the narrative and executing early marketing efforts.

A key insight we’ve shared is the need for a “pi-shaped” marketer as the first hire – someone with both breadth and depth, possessing expertise in both product marketing and growth marketing. This individual serves as the default for all marketing functions due to the limited resources available.

Kramer: It’s not about being an expert in every area, but rather possessing strong skills in two complementary areas, typically growth marketing and product marketing, based on the company’s specific needs.

Estreich: When considering go-to-market strategies, some companies prioritize content marketing, and their first marketer should demonstrate competence in this area.

Kramer: The most important qualities we seek are strategic thinking and resourcefulness. However, candidates must also be capable of setting their own goals and determining priorities, as founders often provide vague directives, such as “write 10 blog posts.”

That’s not a goal. The focus should be on driving results – whether it’s increasing web traffic or generating leads. Simply mandating a quantity of content disincentivizes quality and strategic thinking. A single, well-researched piece can often outperform ten mediocre posts.

Estreich: Achieving the same outcomes with fewer, higher-quality initiatives is key. A common conversation Emily and I have with marketers is, “How do I prioritize?”

Kramer: “How do I establish goals that align with prioritization and drive meaningful results?” We seek individuals who are willing to get their hands dirty but can also think strategically about impact.

Estreich: Experience with the relevant business model is also crucial. The marketing function for a top-down enterprise sales company differs significantly from that of a bottom-up, inbound-driven company. Hiring someone who understands the appropriate go-to-market approach is essential. Industry experience is less important than a fresh perspective.

Kramer: Consumer experience can sometimes be more relevant to a company’s business model. To reiterate Kathleen’s point about industry, many tech companies prioritize candidates with fintech or finance experience, unnecessarily narrowing the talent pool. Prioritizing ambition and a willingness to learn is often more valuable than specific industry experience. The company should have other experts in those areas.

Estreich: A willingness to embrace the target audience is also vital. Throughout my career, I’ve marketed to diverse audiences, and I’m always excited to immerse myself in a new space.

Current Trends in Marketer Hiring

TC: What are the prevailing trends you’re observing in marketer recruitment?

Kramer: Companies are increasingly seeking marketers at an earlier stage. This is partly due to companies raising larger funding rounds earlier than ever before, leading to increased investment in go-to-market and marketing initiatives.

However, some founders still hesitate. Those who recognize the need to differentiate their distribution strategies – in my opinion, a hallmark of successful companies – are more likely to hire marketers earlier. This has created a talent shortage, and I anticipate increased turnover after Labor Day as companies enforce return-to-office policies.

Estreich: We’re closely monitoring the return-to-office situation.

Kramer: It’s more challenging than ever to define early-stage marketing goals.

Estreich: There are more companies starting earlier and securing funding, which creates pressure to grow faster. Larger companies are also thriving, and employees are less incentivized to accept new roles.

Kramer: There’s a growing acceptance of job hopping, as people seek better opportunities and work-life balance. Marketing roles often experience higher attrition rates than other functions, as marketers typically need a broad skillset. Siloed roles in larger companies can stifle career growth.

Estreich: Transparency about the benefits and drawbacks of a role is crucial. I appreciate companies that provide a realistic preview of the work environment. It’s better to learn everything upfront than to be surprised later. We strive to provide this level of transparency on both sides – helping companies set up jobs for success and helping marketers understand what to expect.

Setting Appropriate Goals for Startups

TC: In your Substack posts, you emphasize the importance of balancing testing, scaling, and optimization. How do you help companies establish appropriate goals for their stage of development?

Kramer: We focus on “keeping the lights on” metrics, such as traffic and conversion rates.

Estreich: The baseline of marketing activity.

Kramer: And then we identify initiatives that can drive step-change growth. Measuring everything against the same metrics won’t reveal these opportunities, as tests may not initially outperform established activities.

It’s about breaking down goals into categories: ongoing maintenance, potential growth drivers, and how to test new ideas. It’s about balancing quick wins with long-term projects.

Estreich: “What are we trying to achieve?” and “What’s the action plan?” Then, “What can we accomplish in the next three months?” and “What investments are needed over the next several months?”

Kramer: There are countless marketing activities available, and founders often underestimate the breadth of possibilities. They typically focus on a few areas, such as advertising and PR, but marketing encompasses much more. It’s a multifaceted discipline with numerous avenues for growth.

Beyond Agencies: Operators and Investors

TC: You position yourselves as more than just an agency, also functioning as angel investors and advisors. How do you define your role?

Kramer: We’re not a traditional marketing agency; we’re strategic marketers. We recommend agencies that align with our clients’ needs. We’re exploring the possibility of becoming operator VCs, and our current advisory and investment work reflects that approach. We treat our work like a SaaS company, iterating on our offerings. For example, we identified a need for recruiting support and launched a job board.

We also engage in angel investing, always seeking opportunities to align with companies that share our values. We’re committed to elevating the role of marketing and supporting marketers. As much as we want to help companies grow, we also want to empower marketers.

Estreich: We started by identifying what we enjoyed and where we saw a market need. We realized we could help founders navigate early-stage marketing challenges through advisory services. We identified common themes, such as recruiting, and developed solutions like the job board.

There’s a growing demand in the market for companies with strong marketing foundations, and we’re dedicated to providing that support. That’s why we advise them and work with their marketers. That’s a primary driver behind our firm’s creation.