ATRIUMsearch → argument graph
ExampleVideo · 21:09 — 22:25

Meraki used a land grab strategy by giving away free access points through webinars to let mid-market customers experience the product's simplicity firsthand.

Andy describes how Meraki, facing entrenched competition from Cisco and HP, used free access points to let mid-market customers experience their simpler cloud-managed networking equipment. ✦ AI generated

Andy · a16z Podcast · 2026-08-13 · original ↗

starts at this moment · 21:09

Elicited by

How did you think about like these kind of tradeoffs in the early days of Meraki?

And so what we do is we'd run these webinars and we'd say, 'Hey, you attend the webinar, we'll send you a free access point. You plug it in, try it out.' And the idea was if they if they try it, the lightbulb goes off and they say, 'Wow, this is just so much easier than what I'm using. Why don't I why don't I use that?' And it was it was very very successful for a long period of time and even as the company matured, you know, we were very very liberal in our trial and eval because you just fundamentally want customers to experience the technology. Um and realize that it's better than the alternative.

verbatim transcript · starts at 21:09

Transcript · around this moment

20:49have been trained in command line code and and this kind of stuff. Um, and so, you know, our kind of firm belief at that point in time was, well, what's the best way to get them to understand that our networking equipment is simpler to use than their Cisco that they're about to buy? >> Mhm. >> And the answer is get them to try it. >> Yeah. >> And so what we do is we'd run these

21:09webinars and we'd say, "Hey, you attend the webinar, we'll send you a free access point. >> Mhm. >> You plug it in, try it out." And the idea was if they if they try it, the lightbulb goes off and they say, "Wow, this is just so much easier than what I'm using. >> Yeah. >> Why don't I why don't I use that?" And it was it was very very successful for a

21:25long period of time and even as the company matured, you know, we were very very liberal in our trial and eval because you just fundamentally want customers to experience the technology. >> Yeah. >> Um and realize that it's better than the alternative. >> And do you think like there's there's an element of um like that people can kind of learn from that right now? It's it's hard though because there is a

21:46an aspect of configurability with a lot of the new AI stuff, right? Like if you just give somebody this like, you know, Ferrari, they they might not know exactly how to even turn it on and um and so I don't I I don't know how how you even think about like the delivery mechanism for some of these like trial periods, POCs with some of the AI companies you're working with right now.

22:04>> Yeah. I I think it's become more challenging, right, in the world of AI because number one, things are moving so fast. Like things are changing daily. And if you think about like a a proof of of concept or a trial, you know, the whole idea, if you're on the sales side, is I want the customer to experience this, I want to prove that it works for

22:21them, but I want to do it in a in a period of time that doesn't go on forever, right? And so what you what you have to stay away from, and I think one of the real dangers today is these things turn into like science projects, right? Like I'm going to deploy this, well, can it do this? Can it do this? Can you show me this? Can you show me

22:34this? And of course things are advancing every day, so the answer is probably yes, I could, but then you run the risk of these trials or proof of concepts going on forever. >> Yeah. >> And so it just takes a lot of discipline, I think, in today's day and age to to really box that in and say, "Listen, here's what our solution does, and we're going to, you know, define it

22:52this way, and we're both going to agree that if it, you know, has done this after 45 days, it's success and you're going to move forward with the purchase." >> so there's there is a lot of that today. >> And did you um like I guess would you recommend having like kind of auto converts on these as much as you can or Yeah, like I don't know how like other

Around this claim
This moment responds to
gives exampleCompanies often start with one strategy (land grab or lighthouse) and transition to the other as they mature and verticalize.Andy · a16z Podcastgives exampleThe key distinction between lighthouse and land grab markets is proof versus math: lighthouse markets require proving you're safe to buy from (proof travels), while land grab markets let you simply show superior ROI (math).Joe Schmidt · a16z Podcastgives exampleThe biggest mistake founders make is spending too much time analyzing which strategy to choose instead of executing and learning from customers.Andy · a16z Podcastgives exampleFounders should allocate roughly 1% of their time to strategy selection and 99% to execution, discovering which playbook works through direct customer engagement rather than analysis.Andy · a16z Podcastgives exampleEnterprise AI sales strategies can be mapped on a 2x2 matrix of buyer exposure (risk of making a wrong purchase) versus proof mobility (whether social proof travels in the market).Joe Schmidt · a16z Podcastgives exampleThe best sales playbook depends on whether proof travels in your market and how much buyer exposure/risk the sale carries.Joe Schmidt · a16z PodcastsupportsFounders should allocate roughly 1% of their time to strategy selection and 99% to execution, discovering which playbook works through direct customer engagement rather than analysis.Andy · a16z PodcastsupportsThe biggest mistake founders make is spending too much time analyzing which strategy to choose instead of executing and learning from customers.Andy · a16z Podcast