How the 50-50 rule transformed my startup's growth

No matter how amazing your product is, it is dead on arrival if no one knows about it.

Everything changed when I realized this back in 2006 and came up with what I call the 50-50 Rule: Spend half your time on product development and the other half on marketing.

For developers like me who would rather just build 100% of the time, this is more than a strategy; it’s a lifeline. And it’s the reason I was able to bootstrap my startup from 0 to over 25 million users.

Here’s how I would do it if I were to start again today.

Attracting and converting users

Once you have a product — or even just an idea for one — the next step is to make people aware that it exists. And, of course, you have to convert them.

Here’s how to go about it effectively:

Targeted marketing: Targeted marketing means having answers to these questions:

1. Who is my target audience?
2. What are their pain points?
3. Where do they spend their time online?
4. What messaging will resonate with them?
5. How can you reach them most effectively?

Once you have these answers, you can use them to create a focused and data-driven approach. Social media campaigns, content marketing, and SEO are all great strategies to apply. At Jotform, we create blog posts that address our target audience’s pain points and share them on platforms they frequent. This ensures our message resonates with those who will benefit most from our product.

Sales funnels: Education should be your main goal here. Prospects often fail to convert not because your product is bad, but because your funnel doesn’t address their concerns. At every step of your funnel — whether it's creating lead magnets, offering free trials, or setting up automated email sequences — make sure you’re proactive in addressing prospect concerns. Focus on education, and conversion becomes easier.

Customer onboarding: Make sure your onboarding process is simple and easy for customers to navigate. A smooth start can make all the difference. This process may include welcome emails, tutorials, and in-app guides — we use all three at Jotform.

Retention strategies: Don't just focus on getting new customers; keeping old ones is just as important. Keep users interested and informed with email marketing, loyalty programs, and regular updates. At Jotform, we let users know about new features and send them personalized emails with tips on how to get the most out of the product.

Building a great product

Now that we’ve addressed one half of the 50-50 Rule — growth — let's focus on product. It’s not enough to bring users in the door. You can attract users with effective marketing, but without a solid product that meets their needs and keeps them engaged, they won’t stick around. Here’s how to focus on making your product "sticky":

1. User feedback: Your customers are your best teachers. Don’t build based on what you think they want — talk to them to find out what they actually need. It’s surprising how many founders don’t do this. So make sure every feature you build is based on customer feedback and addresses a real need. You can gather this feedback by talking to customers in person or using online surveys, interviews, and analytics to collect real data. Listening to feedback is how you create a sticky product.

2. Iterative development: This means making improvements in small, manageable increments. If you’re bootstrapped, you have an advantage — you’re not under pressure from VCs or big budgets, so you can test and refine quickly without fear. Use these small updates to test and improve features based on real-world use, and adapt quickly to the feedback you receive. At Jotform, we roll out updates in phases, measuring user responses to ensure we’re on the right track.

3. User experience (UX): Products that are easy to navigate and clearly showcase their value naturally retain customers. If you're not a designer, hire one. If you’re up for it and have the time, learn, but don’t cut corners on this. When I started building Jotform, I hired a designer friend to create the design for me and built Jotform’s first version based on those designs. I was bootstrapped and scrappy, but I knew this was worth the investment.

4. Support and resources: I spent a few years doing nothing but customer support for Jotform. Providing excellent customer support and resources should be a top priority for any founder, especially if you’re bootstrapped. Your users should feel supported throughout their entire journey with your product. They’re the reason you’re in business.

Implementing the 50-50 rule: Practical steps

To implement the 50-50 Rule effectively, follow these steps:

1. Assess your current situation: Don't start applying the 50-50 Rule until you've checked in with yourself and your business. You want your action to be backed by data. Take a moment to do a product health scan. Ask yourself where your business is struggling. What are your strengths and weaknesses? What changes do you really need to make? Before making any changes, you need to have the answers to these questions.

2. Manage your time: Be sure you have a way to track how you allocate your time. Tools like Trello, Asana, or even a simple calendar are really helpful here. The goal is to ensure you’re dedicating equal time to product development and marketing, and if you can’t measure it, it’s not a goal. Remember, too much focus on one area can cause the other to suffer. Make use of those tools.

3. Create a customer feedback loop: We’ve touched on this, but it’s important enough to warrant a place here. Talk to your users. There is no better way to get an accurate read on which part of the 50-50 Rule you’re failing at than by speaking to the actual people you’re building for. Leverage social media, hang out in forums, conduct surveys, hold user interviews, and analyze usage data. Then act on it.

4. Adapt: Markets change, customer needs evolve, and sometimes your great idea isn’t what the market wants. One of the most important lessons I’ve learned is the value of an experimental mindset. Successful founders know that finding the product market fit means constantly making changes and adapting. I had to pivot several times, learn new skills, and adjust my strategies before I eventually created something people want. Stay flexible.