When we talk about startups, we generally talk about products that change the world, innovations that cause problems, or cutting-edge technology. Lots of businesses care about more than just their products; they also care about how well those products reach their target audience.
Actually, some smart founders have found a better and much less expensive way to build a billion-dollar business: they focus on marketing first.
These businesses didn’t just work on their goods for years until they were perfect. They worked smarter, not harder, by putting the customer’s needs first in how those goods got to them.
Today we’ll look at how some startups used distribution as a secret tool and what we can learn from their stories.
The Power of Distribution:
When you think of a successful business, your mind may go straight to a company’s product. But while products matter, they only get you so far without distribution.
Having an amazing product that no one can access is like having a Ferrari in your garage with no fuel.
MrBeast, the YouTube sensation, demonstrated this perfectly with his Feastables brand. Before his chocolate bars even hit the market, he secured distribution deals with retail giants like Walmart. This meant his product was available in major stores from day one. As a result, he didn’t have to rely on social media hype alone—his chocolate bars were physically accessible to millions of shoppers who already trusted the retailer.
Why Distribution First?
It’s simple: focusing on distribution allows you to scale rapidly without burning through cash. You might assume building a billion-dollar brand requires massive upfront investment, but companies like MrBeast’s Feastables or the wildly successful Indian ed-tech platform Physics Wallah show a different story.
Physics Wallah started by offering affordable educational content and used distribution channels like YouTube and their app to quickly expand their user base. They didn’t need a flashy marketing campaign or a massive staff. Instead, they utilized an already established platform with millions of users—allowing them to grow fast, stay lean, and become a unicorn without bleeding cash.
The Dollar Shave Club Model: Subscriptions as Distribution
Another example of genius distribution is Dollar Shave Club. Instead of relying on brick-and-mortar retailers, Dollar Shave Club built its empire using a subscription model.
They didn’t just sell razors; they sold convenience. With a simple online subscription, customers received razors delivered straight to their door on a regular basis. What made this model brilliant was its ability to create a predictable revenue stream while keeping costs down. By owning the distribution process, Dollar Shave Club controlled the customer experience and significantly reduced its dependency on third-party retailers.
This level of control allowed them to scale rapidly, eventually leading to a $1 billion acquisition by Unilever.
Direct-to-Consumer (D2C): Owning the Entire Journey
Another approach that’s gaining traction lately is Direct-to-Consumer (D2C).
When you sell directly to your customer, you cut out the middleman and retain control over the entire customer experience.
Tesla has been a prime example of this strategy. While traditional car manufacturers rely on dealerships to push their vehicles, Tesla bypassed them entirely, choosing to sell directly to customers through their website and physical showrooms. This control over distribution not only allowed Tesla to build a loyal customer base but also provided them with valuable data about their buyers—insights that traditional automakers miss by working through intermediaries.
Owning the customer journey from start to finish, Tesla could ensure the quality of the experience, which is part of why they’ve built such a devoted fan base.
Lessons for Today’s Startups
Secure Distribution First: No matter how great your product is, you need a solid distribution plan. Whether that’s through retail partnerships, online subscriptions, or direct-to-consumer sales, distribution can make or break your business.
Partnerships are Key: Startups don’t always have the resources to build everything from scratch, and that’s okay. Strategic partnerships with established players—whether it’s a retailer, an app store, or an e-commerce platform—can give you access to a wider audience without massive upfront costs.
Lean into Subscription Models: Subscription services create a steady cash flow and build customer loyalty. Look for opportunities to bundle convenience with your product and create a seamless experience that customers will stick with.
Take Control of Your Brand’s Journey: If possible, consider a D2C model. This doesn’t just apply to physical products—service-based businesses can also benefit from direct relationships with customers, gaining more control over the sales process and valuable insights about user behavior.
Conclusion: Distribution Is the Game-Changer
The path to a billion-dollar business doesn’t always run through the labs of innovation. Sometimes, it’s the logistics team or the partnership strategist who makes all the difference.
As more startups shift their focus from developing the “perfect” product to mastering distribution, they realize that the quickest way to growth is often the simplest: getting your product into the hands of as many people as possible, as quickly as possible.
For today’s entrepreneurs, the lesson is clear: Don’t just build it and hope they come—make sure they can get it. Distribution isn’t an afterthought; it’s the foundation of your success.
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