As building product becomes cheaper and easier, the real differentiator has shifted from product-led growth to distribution-led growth. Valuations are increasingly tied to how well a company scales — not just what it ships — with GTM strategy becoming the new moat. The smartest teams are now designing distribution into the product from day one, treating it as a core system, not a separate phase.

What happens when everyone can build?

The cost and time to create software has collapsed. AI, no-code tools, open-source libraries, and cloud infra are rapidly turning “product” into a commodity.

It used to cost thousands/millions and months/years to build a product. Now? A few sharp minds with the right tools can launch something usable.

Let’s rewind :

Services companies were valued at 1.5x–2.5x revenue. SaaS companies commanded 5x–15x ARR.

Here’s the shift :

Yesterday’s moat: your product. Today’s moat: your distribution. The new premium goes to companies with Distribution-Led Growth (DLG).

Perhaps today’s valuation formula is:

Valuation Multiple = Base Multiple × Distribution Premium

And that distribution premium isn’t fuzzy. You can size it: • Network effects? → 2x–3x multiple bump • Efficient paid growth? → 1.5x–2x bump • Sales-led with tight playbooks? → 1.2x–1.5x bump • No GTM motion yet? → just the base multiple

So as product-building gets cheaper, the multiple isn’t about what you’ve built — it’s how well you can scale it.

What does this mean if you’re building today? 1. Building is table stakes. 2. Distribution is the real leverage. 3. Treat go-to-market like part of the product — not a follow-up phase.

The builders who win aren’t just shipping features. They’re designing distribution into the DNA of the product.

Strong products matter. But strong distribution multiplies.

If your product is easy to copy, your GTM better be hard to replicate.

3 things we are doing, 1. Looking for repeat signals across social platforms (YT, Reddit, X, Podcasts) 2. Gauge intent through content and community (engage online and offline with people) 3. Build reusable frameworks across projects and products

#AIMusings #GTM #Distribution

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