If you've ever launched a an app or a business, you'll know it hardest to get your first set of customers.

And even more specifically, the very first customer.

This is especially the case when scaling up apps that require balancing two sides- supply and demand, like marketplaces.

That's the cold start problem in action, a common enemy for tech startups relying on network effects.

In his book by the same name, Andrew Chen offers insights into how to address this based on his experience at Uber.

Chen dives deep into the strategies three of the most recognizable startups used to hack their cold start and grow quickly from inception.

Case Study #1: Uber and the balancing act

Imagine hailing a ride in a city with only a handful of drivers.

Not exactly convenient, right?

Why would a consumer use this app?

The rides are hard to find, the waiting times are long, and the pricing is expensive as the demand far exceeds the supply.

Uber understood this dilemma.

Instead of a nationwide launch, they adopted a city-centric blitz.

This focused approach allowed them to quickly build a critical mass of drivers in specific locations, making the platform instantly attractive to new riders and triggering a network effect snowball.

Growth Hack: They incentivized drivers by using a refferal system. If you referred another driver, both you and the referree would get credits. This created a much needed supply of drivers, encouraging more consumers to join.

This helped Uber blitz cities quickly, before reusing the same model when they moved into the next city.

Takeaway: Don't try to conquer the world at once. Start with targeted sprints in specific markets, build a strong foundation, and scale organically as your network grows.

Case Study #2: Airbnb and the Superhosts

Picture booking your first stay on a new vacation rental platform, only to find a questionable selection of listings.

Not exactly reassuring, right?

Airbnb knew trust was the cornerstone of their success. In fact, the very idea of living in a stranger's place was so contrarian at the time, they know something had to be changed in their customers mindset.

So, they focused on attracting "superhosts" – experienced and reliable individuals – in the initial stages. These were host who regularly rented out their apartments, had an extremely high customer satisfaction rating and provided added positive experience to their guests.

Like making breakfast.

This ensured a positive user experience for early guests, fostering trust and organic word-of-mouth marketing that attracted more users.

Takeaway: Prioritize quality over quantity in the early stages. Focus on attracting high-value users who create a positive first impression and drive organic growth through word-of-mouth and network effects.

Case Study #3: LinkedIn and the Exclusive Club

Imagine a professional networking site filled with random profiles with no context or connections.

Spammy. Not exactly conducive to finding professional opportunities.

LinkedIn initially tackled its growth by employing an invite-only strategy.

This targeted approach allowed them to curate a network of relevant individuals who were more likely to connect and engage.

As the network grew organically through targeted invites, LinkedIn reached a critical mass, creating a valuable platform for professionals.

This attracted more real users who found value in creating with this existing cohort for business opportunities.

And the flywheel had begun spinning.

Takeaway: Leverage the power of existing connections. Targeted invitations can foster a more meaningful user base and drive organic growth in the initial stages.

Concluding Remarks

Starting a company is hard, primarily due to the difficulty of acquiring initial users.

Monetary incentives, exclusivity and a small initial focus segment all work, based on the nature of the business and its core value proposition.

But there are multiple non-monetary growth hacks that we can learn from companies who have successfully done it in the past.

The common thread revolves around obsessively focusing on your customers' experience, because this is fuel for organic growth.