Why ChatGPT Is the Next Big Distribution Channel for SaaS
Key takeaways
- Distribution shifts follow technology shifts, usually about two years later.
- Brian Balfour predicts ChatGPT becomes the next major distribution platform.
- In data he has seen, ChatGPT holds over 90% of LLM-referred discovery.
- Early movers win distribution shifts; spreading across every channel does not.
This article is part of Growth, Decoded, where Rapid North breaks down 50 growth podcasts (about 44 hours of conversation) into playbooks SaaS teams can use.
In several 2025–2026 conversations, on Lenny's Podcast, Mostly Metrics and the Phillionaire podcast, Brian Balfour laid out a pattern that should change how SaaS teams plan next year.
The pattern: technology shift, then distribution shift
The internet came first, then Google became the way products were discovered. Mobile arrived, then the App Store and Facebook's feed became distribution. Balfour points out that the distribution shift is often as disruptive as the technology itself, and tends to land around two years after it.
AI's technology shift arrived a few years ago. His prediction: the distribution platform will be ChatGPT.
The signals
- A massive shift in user behaviour and time toward chat experiences: ChatGPT first, then Claude and Gemini.
- LLM-referred traffic is among the fastest-growing channels for the companies he works with, and more than 90% of that share comes from ChatGPT.
- Platforms that open distribution eventually tighten it, as revenue-share changes on past platforms showed. Early movers get the best terms.
Don't spread thin
Balfour warns that teams who try to "diversify across all of them and let the winner emerge" usually lose. Early-stage companies benefit most when they commit to the new platform early, while diversifying just enough not to be shut down overnight.
What to do this quarter
- Audit your AI visibility. Ask ChatGPT, Perplexity and Gemini for the best tools in your category for your buyer. Note who is named and which sources are cited.
- Write answer blocks. Clear, extractable definitions, comparisons and steps. The Growth IRL podcast noted that LLMs look for these blocks to understand your product.
- Publish original data. Models cite numbers they cannot find elsewhere.
- Earn mentions on cited sources. Reviews, comparison articles and communities the models already trust.
- Track LLM referrals as a channel in your analytics.
FAQ
Is SEO dead because of ChatGPT?
No. Crawlable pages, clear answers and authority still matter, and they also feed AI answers. What changes is where buyers first meet you.
Our AI SEO agency helps SaaS brands get named in AI answers.
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