
What Dropbox, Notion, And Slack Got Right About Their First Users
Most startups don't fail because of bad technology. They fail because they never find a group of people who care . First users are the proving ground for any product. They show you what matters, what doesn't, and what to fix next. The early strategies used by companies like Dropbox, Notion, and Slack show how much intentionality goes into building that first layer of usage and how different those approaches can be.
This article breaks down what these companies got right and what other early-stage teams can take away when thinking about their own launch and user development.
1. Start Narrow, Not Loud
When Dropbox launched, they didn't go broad. Their first wave of traction came from a short demo video posted to Hacker News and Digg. This wasn't accidental - it was targeted. They knew the first users needed to be tech-savvy, early adopters who would give feedback and test edge cases. That 3-minute video brought in 75,000 signups almost overnight. More importantly, it brought in the right kind of users.
Too many startups treat launch like a megaphone moment. In reality, it's a filtering tool. Who shows up first tells you everything about who you're building for and whether your message is resonating.
2. Use Waitlists To Shape Demand
Notion didn't rush into the public spotlight. In its earliest days, it operated almost like an invite-only tool. The product wasn't fully ready, and the team used this constraint to their advantage. By keeping access limited, they created a natural feedback loop: users who got in felt invested, and their feedback helped shape the product.
More importantly, this approach helped Notion focus on the quality of usage, not just the quantity. The team knew they didn't need millions of users; they needed depth with a few hundred. That focus set the foundation for a highly active user base, which became a powerful growth engine later on.
3. Build In the Open (But Not for Everyone)
Slack's public release was preceded by a long period of internal use. It started as a tool built for Stewart Butterfield's own company (Tiny Speck), and only became a standalone product after proving its value internally. Once they released it more broadly, they were still selective in how they scaled awareness. Slack worked hard to earn teams who would use it all day, every day, not casual signups.
That focus on embedded usage led to organic growth: early users became evangelists within their own companies, helping Slack spread without big budgets. This highlights a core lesson: depth of engagement matters more than breadth in the early days.
4. Your First Users Are Not Just Customers, They Are Collaborators
Each of these companies treated their early users like contributors, not just test subjects. Dropbox emailed users personally. Notion founders jumped into user forums. Slack had team members in every support thread. These companies weren't just watching metrics - they were listening to what their clients were saying.
Early adopters are often the people who shape product language, feature sets, and priorities. In fact, many of the best-performing startups built marketing messages directly from early user conversations..
5. Support Can Be A Growth Lever
What many teams miss is that user support in the early days isn't just a cost - it's a growth function. Notion's founders handled support themselves in the early months. This gave them a front-row seat to problems and a direct line to users. More importantly, it made early users feel like insiders, not just customers.
When teams use support to build relationships instead of deflecting issues, they create loyal users. These are the people who write your first reviews, refer friends, and justify your pricing. No ad campaign beats that kind of user-driven distribution.
6. Product-Led Doesn't Mean Passive
Dropbox, Notion, and Slack are all considered 'product-led growth' companies. But that doesn't mean they relied on organic usage alone. They engineered user experiences that encouraged sharing, referrals, and internal virality. Dropbox famously rewarded users with more storage for inviting friends. Slack made it seamless to spin up a new team workspace.
A common misconception is that good products just grow. In reality, growth is designed. These companies built feedback, sharing, and engagement into the product from the start. Early users didn't just use the product; they helped spread it. These strategies are explored in more detail in our startup marketing guide , which covers how to turn feedback loops into positioning
7. Ignore Vanity Metrics Early On
Across all three companies, the focus was on usage quality, not on downloads, press, or social buzz. Dropbox tracked how often files were shared. Slack looked at messages per user. Notion paid attention to how many people built their second or third document. These metrics were tied to retention, not reach.
If your first users aren't coming back, you don't have a product yet. That's why successful early-stage teams obsess over engagement signals, even if the numbers are small.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
18 minutes ago
- Yahoo
American Electric Power Lifts Annual GAAP Outlook, To Announce $70 Billion Capital Plan
American Electric Power Company, Inc. (NASDAQ:AEP) on Wednesday posted stronger-than-expected second-quarter results and raised its full-year GAAP earnings guidance, citing customer load growth, favorable regulatory outcomes, and capital strength across key service territories. The Ohio-based utility reported adjusted earnings of $1.43 per share, up from $1.25 a year ago and above the Street estimate of $1.23. Revenue rose 11.1% year-over-year to $5.09 billion, ahead of the $4.84 billion analyst consensus. GAAP earnings surged to $2.29 per share, compared to $0.64 a year earlier, primarily due to one-time regulatory and investment-related Electric Power reported higher second-quarter operating earnings across all core segments, with Vertically Integrated Utilities earning $296.7 million, up from $244.8 million, and Transmission & Distribution Utilities contributing $224.1 million, compared with $215.3 million a year ago. Transmission Holdco posted operating earnings of $224.5 million, up from $208.9 million, while the Generation and Marketing segment rose to $91.7 million from $61.0 million in the prior-year period. AEP disclosed it has secured financial commitments for 24 gigawatts of new load by the end of the decade, up from 21 GW. The company expects these additions—concentrated in Indiana, Ohio, and Texas—to lift its peak load beyond 60 GW, ranking it among the fastest-growing utilities in North America. View more earnings on AEP Planning is underway for additional transmission lines across Texas, Virginia, and West Virginia, following recent project selections by the Public Utility Commission of Texas and PJM. To support this growth, AEP is preparing to announce a new five-year capital plan of approximately $70 billion this fall, up from its current $54 billion plan. In June, AEP completed a transaction with KKR and PSP Investments, which jointly invested $2.82 billion for a 19.9% stake in AEP's transmission assets in Ohio and Indiana. Combined with a $2.3 billion forward equity raise in Q1, the moves strengthen the utility's credit profile and fund infrastructure expansion. Outlook AEP reaffirmed its 2025 adjusted earnings per share (EPS) guidance of $5.75 to $5.95, in line with long-term growth targets and slightly above the Wall Street consensus of $5.87. The company now expects to deliver toward the upper half of that range. Significantly, AEP raised its full-year 2025 GAAP EPS forecast to $6.57 to $6.77, up from the prior $5.71 to $5.91 range and well ahead of the consensus estimate of $5.86. The updated range reflects items such as the sale of AEP OnSite Partners and the impact of recent federal regulatory decisions. AEP reaffirmed its long-term operating EPS growth target of 6% to 8%, as it continues investing in grid transformation and customer-centric innovation. Price Action: AEP shares are trading higher by 3.61% at $113.15 at last check Wednesday. Read Next:Photo by T. Schneider via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? AMERICAN ELECTRIC POWER (AEP): Free Stock Analysis Report This article American Electric Power Lifts Annual GAAP Outlook, To Announce $70 Billion Capital Plan originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
18 minutes ago
- Yahoo
Morgan Stanley Shows Huge, Unusual Call Options Volume - Are Investors Bullish?
Morgan Stanley (MS) is showing huge amounts of volume in call options that expire on Friday. Is it a signal that investors are bullish on MS stock? After all, the Wall Street firm had strong Q2 earnings, implying potential upside. MS is at $144.43 in midday trading on Wednesday, July 30. That's up from $141.59 on July 15, just before it released Q2 earnings pre-open on July 16. More News from Barchart $200 AMD Price Target? Try These 2 Option Trades Before the Market Moves Pfizer Stock Is a Value Play Ahead of Earnings - Investors Can Short PFE Puts for Income Why Unusual Options Activity for Builders FirstSource (BLDR) May Point to an Earnings Surprise Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! The heavy call options volume can be seen in today's Barchart Unusual Stock Options Activity Report. It shows that almost 6,800 call option contracts have traded at the $147.00 call option strike price expiring Friday, Aug. 1. That volume is almost 30x the prior number of call options contracts previously outstanding at that strike price. This shows huge institutional interest in these options. Moreover, this call option is just slightly over today's price, so it is 'out-of-the-money' (OTM) by less than 2.0% (i.e., $147.00/$144.43 -1 = 0.0178 = +1.78% OTM). The premium paid is just 0.16% of the stock price (i.e., $0.23/$144.43). That means that buyers of these call options believe MS stock will rise over the next two days to $177.23, or just +1.94% higher. Does that mean investors are bullish on MS stock? Possibly, but why wouldn't an investor who buys these calls pick a later period? At least that way, they would have more time left to see the stock rise. It's also possible that some short-sellers of these calls (especially if they already own shares in MS) believe that MS might not rise to $147.00 in the next two days. That way, they gain a very small income yield, about 0.15% over the next 2 days. Either way, it appears that MS stock looks strong here, based on its recent Q2 earnings. Strong Q2 Results Morgan Stanley, which makes money from institutional securities (investment banking, and proprietary trading), wealth management, as well as investment management activities, said its Q2 revenue rose +11.8% YoY. However, the market is more concerned about its bottom line. For example, its earnings per share (EPS) were up +17% and its return on tangible equity (ROTE) was higher at 18.2% in the quarter vs. 17.5% last year. In addition, tangible book value rose +8.4% YoY to $47.25 per share. Most of the company's divisions posted stronger results, although investment banking revenues were down slightly (typically volatile). As a result, investors likely expect that its strong earnings will stay on track going forward. Valuation Is High That means that MS stock now trades for 2.34x book value (i.e., $144.43/$61.59 BV). That is higher than its historical average. For example, Morningstar reports that its historical price/book value (P/BV) ratio has been 1.62x, and Seeking Alpha reports a similar ratio with a forward P/BV ratio of 1.64x. However, its average dividend yield has been 2.72% over the last 5 years, and today MS trades for a 2.77% yield (i.e., $4.00/$144.43 = 0.02769). In addition, its forward P/E (price/earnings) average has been 13.02x, which is lower than today's figure. For example, analysts forecast between $8.86 earnings per share (EPS) this year and $9.58 in 2026. That puts it on a forward P/E of 15.7x (i.e., $144.43/$9.22 next 12 months average EPS). So, on balance, it seems that MS stock may be fully valued at today's price. Investors might not be expecting huge upside in MS stock. Conclusion As a result, investors should be careful about copying today's huge increase in MS call options volume. After all, there are only two days left in this contract, and it appears that much of the volume could be from institutional investors. That implies they may be playing a very short-term trading strategy in MS stock. This may have nothing to do with Morgan Stanley's long-term outlook or even its valuation, as described above. The bottom line is that investors should be careful about investing in out-of-the-money (OTM) call options for MS stock expiring Friday, Aug. 1. On the date of publication, Mark R. Hake, CFA did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18 minutes ago
- Yahoo
ComplyControl Launches SafeStart Program to Offer Fintech Startups Full-Scale Compliance Support
LONDON, July 30, 2025 /PRNewswire/ -- ComplyControl, a UK-based provider of AI-powered compliance solutions, is excited to announce the launch of ComplyControl SafeStart — a dedicated program for fintech startups across the EU and UK. With a mission to help early-stage companies build trust, scale faster, and stay compliant from day one, SafeStart offers access to ComplyControl's full suite of compliance services. Compliance is a costly and complicated hurdle for startups to overcome. Data shows that small businesses spend an average of $7,000 per employee annually on compliance — nearly 60% more than large companies. For new businesses operating on a tight budget, that's a heavy pressure. But cutting corners is riskier, since it can lead to regulatory fines, loss of investor trust, failed partnerships, and outright business shutdowns. So, in the end, non-compliance is even costlier. ComplyControl SafeStart program is designed to ease this burden, helping startups integrate advanced compliance solutions from day one without the fear of complexity or high costs. Startups accepted into the program will receive: Free access to all ComplyControl tools — including real-time transaction monitoring, AI-driven AML & CTF detection, sanctions screening, and policy gap analysis — for up to 50,000 transactions per month. 12 months of free usage with no hidden fees or limited features — enough time to integrate the tools and assess their effectiveness. Unlimited no-code rule creation to configure the system in days, not months. Early access to new features, expert guidance from the ComplyControl team, and a flexible transition to commercial terms after the first year. ComplyControl SafeStart offers startups unrestricted access to the same powerful compliance tools that are already used by established financial institutions that have partnered with the company. Its platform makes use of advanced AI to process transactions in under five seconds, reduce false positives by up to 80%, and simplify daily compliance operations through a user-friendly interface and explainable screening results. Just as important, ComplyControl's team doesn't just hand over the software and tell you to figure it out yourself. They act as mentors, sharing their own expertise and offering ongoing support to help startups navigate the early stages of compliance with confidence. "The field of compliance grows perpetually more complex every day, making it a major roadblock for many fintechs who are just taking their first steps towards growth. With ComplyControl SafeStart, we want to remove that burden and let startups focus on building great products while we take care of the compliance side of things," — says Roman Eloshvili, Founder of ComplyControl. Startups can apply for the program either through the company's website or by contacting the team directly at support@ About ComplyControl ComplyControl is a UK-based provider of AI-driven services that improve risk management and ensure regulatory compliance for financial organisations of all sizes. The company specialises in AI-powered solutions that make compliance faster, smarter, and more cost-effective. Recognised by TechRound as one of the UK's Top 50 Fintech Startups in 2025, ComplyControl holds to the mission of simplifying regulatory compliance and helping financial organisations stay ahead of the ever-evolving risks. Contact ComplyControlinfo@ Photo - - View original content to download multimedia: SOURCE ComplyControl