Why Most Startups Burn Cash on Demand Gen (Before They’re Ready)

Before you run demand gen, prove your startup can convert high-intent buyers. Otherwise, you’re just lighting your budget on fire.

The Startup Fantasy: Scale Fast, Go Broad

Every founder dreams of explosive growth. The kind where your startup’s brand suddenly shows up everywhere—LinkedIn feeds, podcast pre-rolls, YouTube ads, even on swag at tech events. That buzz? It’s demand generation. It feels good because it looks like momentum.

But here’s the problem: most startups chase that buzz way too early.

Demand Gen Without Proof Is a Money Pit

If you haven’t proven that your product can convert high-intent buyers, demand gen is not a growth channel—it’s a distraction.

You’re not “generating demand” if you can’t close the people already searching for what you sell. You’re just paying to entertain people who were never going to buy.

The Litmus Test: Can You Convert Intent?

Here’s a simple, ruthless test before you pour money into demand gen:

1. Pick one or two high-intent, exact-match keywords that describe your core offer.
2. Run paid search ads targeting just those keywords.
3. Drive 200 visits from people actively looking for what you offer.

Example: You sell online accounting software? Bid on “online accounting software.”

If those 200 clicks don’t convert into trials, demos, or signups?

You don’t have a traffic problem. You have a positioning or product problem.

Browsers Don’t Buy What Buyers Won’t

This is the trap: if the people actively looking for your solution aren’t buying, then no amount of brand building will save you.

Because the truth is, demand gen doesn’t fix broken funnels. It amplifies them.

So before you scale, get your foundation right. Nail your positioning. Validate your message. Make sure that when someone with a credit card and a need shows up, they convert.

Earn the Right to Go Broad

Once you’ve proven you can convert intent, then demand gen becomes powerful.

That’s when it works. Because now, every new eyeball you pay to reach is just one good ad away from becoming a lead.

So yeah, demand gen is sexy. But don’t confuse noise with traction.

Earn the right to go broad. Prove your product in the fire of intent.