All products have The life cycle, from development to introduction to growth and maturity. A great product is not enough. To continue accelerating your company’s growth, you should look to multiple products.
Going multi-product can be a huge revenue generator when implemented successfully. Proof of this can be seen with best-in-class companies – from Apple to Adobe to ServiceNow – that are constantly adding multiple product offerings and expanding their existing capabilities. Most of these companies generate significant revenue from products that are not their inaugural products and have managed to maintain a hyper growth rate by offering multi-product offerings.
We were a one-product company when I started at monday.com in 2016. During my first few years, the company experienced rapid growth as customers continued to use our software in new and innovative ways. It was amazing to witness, but it begged the question: How do we maintain this momentum? The challenge before us was as clear as the laws of nature – the larger your customer pool, the more difficult it is to grow at the same rate. That’s when we acted on our vision to conquer every essential aspect of the business with new and targeted products. In addition to adding new capabilities to our platform, we launched a CRM for Monday Sales and Monday Development based on our customers’ needs. We’ve seen growth from these new products significantly outpace that of early Mondays, with annual recurring revenue for Monday CRM sales and Monday development growing 22x and 4x faster, respectively.
With all that said, my most important advice is to not be afraid to take risks.
While going multi-product can take your business to the next level, leaders face many challenges when undertaking this endeavor – from finding product-market fit and developing a go-to-market strategy to timing and more. Drawing on my experience transitioning monday.com from a single product template, here are three steps to ensure your multi-product journey is successful.
If the shoe (product market) is suitable
We all know that finding product-market fit can be difficult, especially when you have limited resources and must move quickly to find and serve your target market. But there are some signs that your initial offering is a broad product-market fit, and it will be easier for you to identify your second product: