BusinessModel

What is WTP?
Willingness To Pay is not simply about asking:
“Will customers pay?”
but rather:
“Are customers willing to pay the right price, without subsidies or external support, and continue paying repeatedly over time?”

A common and risky misconception
Many startups assume:
“Customers have paid → therefore the product has value.”

However, KisStartup’s practical observations show that customers may pay:

• for a pilot project,
• due to grant or donor funding, or
• because there are no alternatives at the time.

Yet they may not:

• purchase a second time,
• expand usage, or
• recommend the product to others.

In such cases, WTP exists momentarily, but Product–Market Fit (PMF) does not.

WTP alone is not enough – repurchase and continued usage matter
A product with genuine PMF typically shows that:

• customers return for second and third purchases,
• perceived value increases over time rather than declines,
• customers proactively request additional features, service tiers, or expansions.

Conversely, when:

• only a small number of customers pay,
• the observation period is too short, and
• data is not analyzed by cohorts and cycles,

startups are highly prone to false positives about PMF.

KisStartup’s perspective: PMF is a process, not a milestone
Across our incubation and acceleration programs, we emphasize that PMF is not something you “achieve” in a single month.
PMF is an ongoing process of validating assumptions through real behavior and real data.

We therefore advise startups to:

• observe at least 3–6 months before declaring PMF,
• track activation, retention, and WTP simultaneously, and
• avoid premature scaling when evidence is still weak.

Do not celebrate too early
The first paying customer matters.
But PMF only emerges when customers stay, return, and pay repeatedly.

If you are building a startup, ask yourself:

• Do customers come back?
• How long do they continue using the product?
• Do they buy more or upgrade?
• Will they still pay when support or incentives are removed?

Only when these questions are answered with data rather than intuition are you truly approaching PMF.

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Blind Spot 1: Having IP but failing to link it to revenue
Ask yourself:

• What is our core IP (technology, software, data, processes, brand...)?
• Where is this IP generating direct or indirect revenue?
• If this IP were removed, would our current revenue be impacted?

Warning Signs:

• IP only appears in the “Legal” slide of your pitch deck.
• No one on the team can answer: How does this IP help us make money?

Quick Fix:

Write one sentence: “IP [X] helps us generate revenue by [Y] from customer [Z].”

If you can’t write this → you have a serious blind spot.

Blind Spot 2: IP exists but fails to create competitive barriers (Moats)
Ask yourself:

• If a competitor sees our product today, how long would it take them to copy it? (1 week / 1 month / 6 months / 2 years?)
• Which part of the product is the hardest to replicate?

Warning Signs:

• Competitors copy quickly, and the startup is “powerless” to stop them.
• The only advantage is speed, not control or ownership.

Quick Fix:

Circle 1–2 elements that are the hardest to copy → that is the IP you need to protect and exploit, not everything else.

Blind Spot 3: Messy or ambiguous IP ownership
Ask yourself:

• Who created the IP? Founders, employees, freelancers, or partners?
• Have all rights been officially transferred via signed contracts?
• Are we using third-party code, images, or data without clear permissions?

Warning Signs:

• IP was written by a freelancer without a clear contract.
• The Founder thinks it belongs to "the company," but the paperwork is still in their personal name.

Quick Fix:

Create a simple table: IP – Creator – Owner – Proof of Ownership.

Even one ambiguous IP is enough to make investors walk away.

Blind Spot 4: IP is not aligned with the target market
Ask yourself:

• In which market is the startup currently making (or planning to make) money?
• Is the IP protected in that specific market?
• Do we have a plan for territorial IP expansion?

Warning Signs:

• IP is registered "just to fill the file" but doesn't match the actual business territory.
• No one on the team knows where the IP is currently protected.

Quick Fix:

Apply the 80/20 Rule: Protect your IP in the regions that will generate 80% of your future revenue, not everywhere at once.

Blind Spot 5: IP is unusable for fundraising & partnerships
Ask yourself:

• If an investor asks: “What is the proof of your IP’s value?” → what can you provide?
• Can this IP be licensed, integrated, or shared under controlled conditions?

Warning Signs:

• You only have certificates, but no contracts, Letters of Intent (LOI), or pipelines.
• The IP depends entirely on one specific individual in the team.

Quick Fix:

Prepare an IP Value Proof Slide: [Which IP] → [Helped which deal] → [Created what value].

Self-Diagnosis Results

• Below 3/5 points: IP is a strategic weakness.
• 3–4/5 points: You have a foundation, but IP is not yet a lever for growth.
• 5/5 points: Your IP is ready for deep exploitation (licensing, fundraising, partnerships).

The Message

IP is not dangerous because you haven't registered it — IP is dangerous because you don't know how it serves your business model.

This mini-checklist is the first step for startups to view IP as a business asset, not just a legal procedure.

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