How To Earn Customers For Life

In this first in-person episode, Michael Seibel and Dalton Caldwell reveal how startups can gain a competitive advantage by doing something deceptively simple. They share compelling stories of companies that built loyal relationships and achieved success by making personal connections with users. In contrast, they discuss the traps early-stage founders make by trying to emulate big tech. If you want to build a business that customers love and that thrives in the long run, this advice on why caring deeply about your customers is key.
Apply to Y Combinator: yc.link/DandM-apply
Work at a Startup: yc.link/DandM-jobs
Chapters (Powered by bit.ly/chapterme-yc) -
00:00 - Intro
00:42 - Flailing
01:43 - Horrible Emails
02:33 - Customers as an End
03:06 - Liking Your Users
05:09 - The Takeaway
06:19 - Being Accessible
09:01 - Your Superpower
10:03 - Learning to Care
12:01 - Conclusion

[@ycombinator]

What is an example of a company going above and beyond to care about you as a customer?

[@snippletrap]

I frequented a coffee shop when it first opened, I liked it a lot. The owner noticed me coming in and gave me a gift card for $15. Not a big deal, but it made me a loyal customer for life.

[@neelkumar6393]

I had one of my user's ask me to update some a caption for them because the post they had was 2 years old, we did not have the edit functionality since it was so old :/. Took me 5 mins to go into the DB and change it, but she was a day one user and worth it, very rewarding!

[@RoadmapMBA]

Great video

[@Leto2ndAtreides]

I had a case where my Amazon deliveries were stolen when they were left at my door. $400 worth. There were some more still pending so I called them to try to get them sent elsewhere... And they decided that it was their fault (and not the criminals' fault) that my package had been stolen. And so they refunded me the $400. I contrast this some with experiences with government. Like the back of my car being an inch or two into a driveway, where any sane person could easily get their car out or park theirs. But no... they towed it, and charged me $900 to get it back. Not that we really expect government to have any sense of customer service... Especially in places with single party rule.

[@nonefvnfvnjnjnjevjenjvonej3384]

Lord Gaben (Gabe newell), the founder of Valve, hand delivered Steam decks to a bunch of customers! No wonder Valve is beloved. I think Valve is quite an under studied tech company because they don't fit into the usual patterns, but their focus towards their customers and the way they build things is second to none.

[@stephenhunter121]

Something about all this advice makes me not want to pay $160,000 for an MBA. Thank you!

[@tahamaddam7415]

In short: - Startups should care about their customers as it is a competitive advantage - Many big companies, such as Comcast and Facebook, are known to be hostile towards their users - Startups should not emulate big companies, but instead focus on creating a personal relationship with customers - Caring about customers can lead to more sales, a better understanding of customer needs, and a more enjoyable experience for both parties - People can tell if a company cares about them and will be more willing to provide feedback and cut slack if necessary

[@dwylhq874]

Thanks Michael & Dalton 🙏 Your insightful wisdom is much appreciated. It’s the companies that care about the people using their product that ultimately succeed. ❤️

[@thefocuschic3234]

That's actually easier said than done. I've worked with customers in the past and the amount of assholes you find is usually larger than the good customers. Eventually you reach a certain point where you're just fed up of people. Good to see you back in person again, btw.

[@asdfljasdfaklsd1910]

Depends heavily on your market! There are audiences of open, grateful, excited people but not for every space. Developers in particular can be a difficult group.

[@wethepeopleofghana8441]

The interesting thing with these guys is that most of the things they talk about is distilled knowledge from years of experience either from starting and running their own companies or working with hundreds if not thousands of startups. I can't believe we get this information for free.

[@andrewkolpakov5375]

Sign upped for YC startup school after this video. Very helpful. Seemed like very simple things, but that's really important. Thank you!

[@jusoul4821]

This was gold! The part about ‘not giving away your advantage of being a startup’ was a great insight. For all the boxing fans out there, this reminds me of watching Garcia give up his reach/height advantage against Tank. The whole time I was watching the fight I was thinking ‘use your reach!’ Now I’ll be looking in the mirror thinking ‘use your startup advantage of being able to build one on one relationships and care about your customer!’ Thank you both for sharing this wisdom.

[@PedroSilva-zt2gy]

I'm launching my product today and this was what I needed! Thanks!

[@buttface6t4]

these two have a good dynamic. very fun to watch and listen to

[@Greenmanjim]

Casual convo + knowledge = helpful

[@casual_collisions]

I love this time of the world. I am so appreciated that I can learn insights and the essence of business from those who have walked on various paths in advance. Thank you both of you. from South Korea. (p.s. Thanks. I am learning a lot of English expressions, too)

[@enioluwaodunjo]

This is Gold! Thanks guys🧡

[@thetrends5670]

Nice to see both of them together instead of on a Zoom meeting.

[@TheMicahwitz]

This info is invaluable. I get to listen to two experts talk about the nuance of VC life for free! Great stuff guys. It’s also interesting

[@lukeschaffer6312]

love the irl chemistry!!!

[@travissherman9979]

This talk really hits home for me. I just got off a potential customer call and even though the sale wasn't made, we still decided to stay in contact for any feature updates we had that would solve the customer's problem better because the customer knew we were actually trying to help.

[@danielmoenga]

Finally!! In person!!

[@spencercamp]

Lovely new format and advice. Just care. ❤

[@YoannBuzenet]

Great format, really funny. Golden insights, thanks!

[@amadsamara]

I love these two when they talk! So much gems being dropped

[@Prima-Infotainment]

Michael is the reason for me subscribing this channel.

[@chan90s]

Well, an Indian healthy snack startup delivered me a whole box of nutrition bars with founder Suhasini calling me to apologize for bad customer experience. Gave a second chance and customer for life since then

[@StefTechSurfer]

Loving the right topic side bar

[@rkbranscombe972]

Yes - right on! Crazy this isn't taught more. It's basically a version of the Golden Rule: How do I like to be treated as a prospect and customer?

[@saptadeepdas1188]

Their advice is mathematical without sugar coating and I love it bcz it will work in real life .

[@sepidehyazdi5358]

You guys are amazing 🤩🤩

[@rafael_molines]

thank god for this

[@collectitbydiyversity2442]

Good to see you both together finally and still keeping the chemistry! Now, about the video. This is crazy! Maybe it's just me. But why wouldn't especially founders,, love their users/customers, let alone like them? If that's the case, don't start a business. Work for someone else, that way you can dislike the users and the job all at once. And yes, I haven't used Comcast or Xfinity in years because they suck. I have always loved helping people, and I loved supporting customers/users, even when I was young working at jobs I hated because I had to feed myself and not live in a box. That was my drive, and inspired to start my own businesses. So I could keep loving working directly with customers/users and not hate my boss or job. This start up I'm doing feels like a complete nightmare, with something seeming to go wrong every day. But I love the fucking challenge, and I love more connecting and learning about my users. And they actually make my day feel better no matter what new chaos come my way.

[@gadmugambi]

Thanks 😊

[@patrickgauthierkamgang9240]

3:13- that should be a meme . "Do you like your users ?" (with the gaze)lol

[@Leto2ndAtreides]

I think it tends to be cleaner if you understand earning money as an exchange for services rendered and experience created. That all money (normally) is, is a case of you having offered others value, for which you have yet to take any value back (from society) yourself. (Investments are you being empowered by money other people earned)

[@ycombinator]

Woah, this is weird! Dalton and Michael are in-person for the first time! What do you think? - Zach

[@rileycx]

It is a lovely change.

[@carlatashkadeh5890]

The important part is Michael and Dalton making more videos together :)

[@devtea]

This is amazing! Thank you to everyone at YC for making this happen! It's like we had to suffer through the remote-ness of the [post]pandemic video conferencing, in order to appreciate this very moment when we can see them in person. A whole new vibe, and a huge level up!

[@grammar_shark]

Love it!

[@saminarind]

Digging the juxtaposition of keeping-it-real with the unvarnished yet earnest truth bombs vis-à-vis the endearingly light-hearted infectious giggle fits. Learned and laughed. More, please!

[@andrewboyko91]

This is great

[@savorthepassion]

I've absolutely turned down deals with users I didn't like. Not all money is good money. If one deal will make it more difficult to take other deals it's often times worth walking away.

[@duongtt3]

V4 - So much fun hearing you laughing; especially in the middle of the night 🤣

[@janmolski]

Watching video with Michael alone I thought he's sad or something... I realized I just always watched videos of him with Dalton and he's just more energetic and laughts a lot in those... I think

[@rufussweeneymd]

God this is so much better in person.

[@parthchampaneri6204]

I’m building a product. In a very brutal and competitive space, Hiring/recruiting. I firmly believe only a life lived in service of others is one worth living. Do you think emphasis on this in our product, website, branding, will matter? Or shall the focus be on delivering the message with individual user interactions first, like your stripe interaction?

[@suchoudh]

good one 🧐

[@ahmadabdulkadir544]

more than the wisdom shared, I really like the noding going on

[@arihantparsoya]

Hi, can you make a video on ethics of startups. I feel lot of generative AI startups are focused on replacing people which leads to loss of jobs to lot of people. Curious to know your views. Thanks.

[@railtorail]

Michael and Dalton I can't tell you how much value I get from your videos. Such pragmatic, down to earth stuff. Thank you.

[@reinforz]

I enjoy the emphasis on the long term. It's tempting to focus on short-term advantages, but investing in genuine customer relationships will eventually pay off in the long run. What are some practical strategies for early-stage companies to prioritize cultivating customer relationships, especially when resources are limited?

[@ShashankChaganty]

Guys love the content and your dynamic! Super funny and at the same time super insightful! Just would like to add though that you have a multicultural audience from around the world, for whom sarcasm/irony might not come so naturally?

[@derek-yap]

I believe this 100%. Good customer service is part of the product experience, and that's what matters the most.

[@Taskade]

Customer support for the win.

[@FacelessFoodShow]

Video conference felt more intimate than in-person.. don't know why but weirdly that was better.

[@DanielWyrzykowski]

How to think about things that customers don't like but work and are kind of necessary to develop your company - like popups for building a mailing list?

[@thanks600]

This personal touch seems only works for small number of clients. B2C will be hard to be personal & catering all. One may even build a company for this services. I see at least 3 stages: getting noticed, align the issues, resolution. Big company may have account manager for B2B, PR for B2C. For mass communication like Twitter, using bot(AI) to sift the ocean maybe the sane way at least for Business to aware.

[@amirankurtanidze6966]

I hope to contact you soon in person at office hours

[@ehibble]

“Comcast who renamed to xfinity, like idk maybe they won’t remember” ahahhHhHabb I just about lost it 😂

[@eladleshem3790]

Beautiful. This is the nice, funny version of Jeff Bezos' Customer Obsession. Thanks guys!

[@StefTechSurfer]

Tips for moonlighting?

[@chapterme]

Chapters (Powered by ChapterMe) - 00:00 - Caring About Your Customers 00:42 - The Signs That a Startup Is Flailing To Get New Customers 01:43 - Mass / Horrible Email 02:33 - VC Marketing - Customers is not an end 03:06 - Do you like your users 03:30 - Lot of companies don't like their users 05:09 - Takeaway for founders 06:19 - Pretending that your startup is a big company 09:01 - Superpower - Caring about your customer 09:53 - Advice for startup founders who don't care about their customers? 10:03 - Genuinely care for your customers 12:01 - It really helps to care about your customer - Learn more, make more sales, have more fun

[@StefTechSurfer]

Need more promo deals like a competition or referral vouchers.

[@mPajuhaan]

I really enjoyed this episode, especially the dynamic between Dalton and Michael in person.

[@cryptogoth]

These guys have great chemistry and great advice. Thanks for such timely advice.

[@chuhaoliu5050]

6:50 "Something incredibly powerful, it's people like to talk to the founder of the company"

[@markg5986]

09:05 - "Caring about your customers is a superpower"

[@kafelomaverdekafelomaverde4985]

Thank you, yes, interesting conclusion. In order to obtain customers for life, we must give a lot of affection and kindness to the people who visit our coffee shops. We will put it into practice this applies to the entire planet. Spanish: Gracias, si interesante conclusion para obtener clientes de por vida debemos regalar mucho afecto y amabilidad a las personas que visitan nuestras tiendas de cafe.. Lo pondremos en práctica esto aplica en todo el planeta..

[@josvdwest]

Is there a podcast version of you guys doing these episodes? If not, please care about us as customers and make one! :p

[@ycombinator]

open.spotify.com/episode/4lDjbSbJuujsseaN4TIkrs?si=e419748fd20e4eba

[@MHTHINK]

Another way to highlight this: would you do this for free if you could? If the answer is no the motivations are unaligned with hive collaboration (all people getting better). The motivation for money and not something you'd do without that incentive is always bad, I suspect.

[@hassansabra9392]

for the flailing and horrible emails parts, I'm shocked that startups who were in the batch and got $500k still do these...

[@pokegan52]

I thought this was an old video or something based on them just being together in person lol

[@CampbellsvilleBibleStudy]

Great observations! What would be the answer for the introvert founder with a great solution that his gift for creating solutions far outweighs his relatability in people relationships? Bill Gates? lol. Just kidding. How could a young awkward solopreneur solve this? Thanks for all you guys do! James

[@StefTechSurfer]

Online sales are hard.

[@BolatSerkan]

I always love your content! Also, what an interesting question: Is in-person to online or online to in-person a progress or an upgrade? 🤔

[@ahsanmohammed1]

What is your networth? Thanks.

[@James_David]

wow didn’t know Tucker Carlson is a y combinator alum

[@germanmoreno271]

I was quite surprised that Tucker Carlson was apart of this video! 😁 Just joking! Thank you for the information!

[@StefTechSurfer]

LOI?

[@soumen_das]

The advice was grt. But it doesn’t specifically say ‘how’. Nevertheless grt video as always.

[@george_davituri]

it's like bidirectional if you care about customers they also try to help you with your sell 😂

[@StreamAgency]

LMAO Great video. Stung a bunch but I come for the punishment.

[@crazieeez]

Elon Musk doesn't like his users yet they still buy his car. His strategy works.

[@mr.mystiks9968]

being Elon musk and creating a startup are two different scenarios. This channel is about building startups, not owning multiple companies.

[@crazieeez]

@@mr.mystiks9968 People learn from what works. Elon Musk talks down on his users yet they buy his cars a lot more. Goes to show you need to talk down on your users and they will buy more of your product. You do what you see work not what people say that worked.

[@claritybounds8121]

​@@crazieeez please try that with your customers and let us know how that goes for you 🙄

[@yaelfelicia5820]

👏🏽👏🏽👏🏽👏🏽👏🏽

[@juliuspreloznik7236]

God I love these two