The Revenue Formula Why you shouldn't internationalize (w/ Shantanu & Koen from Personio)
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Oct 28, 2025 International expansion seems enticing, but it can be a perilous journey. The guests share insights on common pitfalls, emphasizing that merely translating a website isn't enough. They discuss the importance of understanding product fit in new markets and navigating complex local regulations. Cultural nuances and hiring the right leaders can make or break success abroad. The conversation reveals that expansion should be treated as a calculated bet, requiring strategic planning and commitment to preserving company culture.
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TAM Expansion Is Not A Strategy
- Expanding just to increase TAM is often a lazy spreadsheet decision that ignores execution complexity.
- Teams must evaluate product, go-to-market, and operational readiness before adding geos.
Validate Product GeoFit First
- Assess Product GeoFit: test whether your product, message, and branding resonate locally before full launch.
- Validate regulatory, behavioral, and channel differences rather than assuming language parity equals fit.
Certain Products Are Inherently Local
- Some product categories (like payroll/HR) are intrinsically local because of regulations and payroll integrations.
- AI and features cannot fully replace the deep local compliance and functionality work required.