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Wednesday, July 25, 2012

Does Invite-Only Registration Make Sense For Your Product?

5:03 PM Posted by Deepak Nayal , , No comments
Lots of tech startups are popping up nowadays launching new products; most of them seem to opt for invite-only registration process. I couldn't help but think if these guys have really thought it through or are they just copying others blindly. While in some cases it does make sense for a product to have invite-only registrations, I do not think that all products need to follow this approach. Before you decide whether such a closed registration process makes sense for your product, you need to analyze its pros and cons. 

PROS
  • I think having invite-only registration works best when you do not really have a working product. It helps you in getting the users even before your [minimal viable] product is ready to be launched and used 
  • We all know that first few releases are full of bugs and problems. Invite-only registrations ensure that only a small number of users get affected with these problems. This helps keep the bad publicity in check
  • Another good reason for an invite-only registration is when your architecture or systems are not robust enough to bear the load of more users. And till the time your application isn't ready, you would prefer to collect the email ids of users instead of turning them away
  • Such registrations can create a shortage of supply and in doing so can help in generating buzz around the product. Having said that I have seen this work better for more famous products. For almost all startups that I know personally, that have implemented this strategy, it did not really help much if at all

CONS
  • The biggest problem that I see with invite-only registrations is that they stop users from reaching out to your product. The fact is that users opened your website or app to see what it does or what it will do. Now instead of showing the product if you ask them for their email id so that you can reach out to them in a few weeks or months, they are going to get disappointed. In addition to that most of the users are not going to want to just share their email id with a stranger just so you could spam them later. They need to see something to share their contact. Quid pro quo. Though I do not have the data to prove this, I think for most products with invite-only registrations actually lead to fewer registrations than if the product had open registration. Sure, the user might get disappointed seeing the early versions of the product. But that is going to happen anyway when all they see is a message asking them to share their email id and come back later. At least in the case of open registrations users will share their email id readily in order to see what the product is all about
  • Look, there are millions of web and mobile apps out there. It is already hard to make someone reach out to your product. Why do you wanna make it even harder by adding invite-only registrations? If you think that if you opt for open registration process users will start rushing in and crash your application, then first of all wake up buddy, you are not that popular, and second of all that is a problem you really want to have. If I have to choose between less users with no applications crashes and more users with application crashes, I will happily go for the latter. Users are generally more forgiving than we think. They understand that new applications have problems. 

The general trend nowadays is to have invite-only registrations for web products. While it does make sense for some new product launches, I believe it actually hurts most of them, making users turn away. I think product managers/entrepreneurs need to think through and make sure that invite-only registrations make sense for their product, instead of following a trend blindly that can cost you your product. Probably, instead of going for one now they should go for it later in the product growth phase or may be never. 

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