I was at 1871 yesterday afternoon to meet with a colleague and 6 people stopped by during our conversation and asked if they could talk to me before I left. Many of them are in the Lean Startup Challenge and were entering "beta". The reason they stated for doing a beta is because they needed to add more features to make the product valuable. So, I asked why can't you start selling it now? How do you know someone won't buy now?
Beta is an emotional crutch. In my experience, most entrepreneurs assume that they need much more than what they really end up needing to get someone to give them a dollar. I have released quite a few products into the market and I have NEVER released a product that nailed it out of the gate. If someone doesn't buy, then you can find out what you need to do to get them to buy. You can track what they do on the site and see what users who buy do and drive prospects toward that behavior. In beta, the users tend to be free, so you don't know what makes people buy.
- Don't do a beta, launch now
- Set up analytics on your site so you can see what folks are and are not doing. Note: don't use Google Analytics; you get what you pay for. I use Kissmetrics, but there are other analytics packages that do the job.
- Continuously A/B test
- Do a 30 day free trial and have multiple touch points with folks who sign up to get feedback
- Have a way for customers to give you instant feedback such as Olark or KissInsights
- Have fanatical support, as close to real time as possible. BTW, don't put junior people on support. Its your job to understand how customers feel about the product.