This feels risky to me, so I’ve been planning to develop other products to market to our existing customer base. This will certainly fragment our attention and resources and I am not confident this is the right path. I’ve recently heard stories of companies developing new products only to realize years later that their flagship product is far outperforming their other products but they take about the same attention and resources to maintain.
We’ve seen Basecamp recently realize this and double down on their flagship product and are in the process of shedding all their excess products. And in a recent interview, WP Engine founder Jason Cohen highlighted that in his previous venture (Smart Bear Software) they spent 3 years developing other products only to come to this realization and double down on their flagship code review product. In the WordPress space, Brave New Code has doubled down on their WP Touch product and the rest have taken a back seat. And Rocketgenius (makers of Gravity Forms) is a great example of a company who has focused on their single product for the past 5 years and has done exceptionally well.
I know there are plenty of counter examples as well, i.e. companies that have multiple products that are equally successful. But I guess I’m wondering if there’s a way to know in advance if it’s worth developing additional products rather than focusing. Or do you just have to go down that road for yourself to find out?