SlideShare une entreprise Scribd logo
1  sur  81
Télécharger pour lire hors ligne
Startup Metrics 4 Pirates!
                     AARRR!




GeeksOnaPlane 2012
     Zagreb, Croatia
    Sept 2012 - #GOAP #AARRR

 Dave McClure @DaveMcClure
               http://500.co
      http://500hats.typepad.com
   http://slideshare.net/dmc500hats
WARNING:
WARNING!!!
this deck is guaranteed to offend,
provide tragically incorrect advice,
  and perhaps get you arrested.

         Fucking Deal with it.
Dave McClure
           Developer, Entrepreneur, Marketer, Investor, GEEK!




00’s & 10’s:
•  Investor: Founders Fund, Facebook fbFund, 500 Startups
•  Companies: Mint.com, SlideShare, Twilio, WildFire, SendGrid
•  Marketing: PayPal, Simply Hired, Mint.com, O’Reilly Media
•  Speaker: Lean Startup, Web 2.0, Stanford/Facebook

80’s & 90’s:
•  Entrepreneur: Founder/CEO Aslan Computing (acq’d)
•  Developer: Windows / SQL DB consultant (Intel, MSFT)
•  Engineer: Johns Hopkins‘88, BS Eng / Applied Math
500 Startups
Seed Fund & Accelerator
    (350+ companies, 20+ countries)
[ This Talk ]
Topics

•    Basic Concepts of “Startup Metrics 4 Pirates”
•    3 Steps to AARRR: Product, Market, Revenue
•    Constructing MVP: Just ONE Feature?
•    Design (UX) & Distribution (MKTG)
•    Winning: Market, Revenue, Profit?
Key Concepts

•    MVP = F(Customer, Problem, Time or $$$)
•    PMF = F(Customer, Solution, Alternatives)
•    AUX = F(Customer, Design/UX, Metrics)
•    ACQ = F(Customer, Campaign, Vol, Cost, Conv)
•    WIN! = F(Customer, Usage, Dist, Revenue)
Geek Renaissance

•    Tech Innovation
•    Finance Innovation
•    Design Innovation
•    Social Innovation
•    Global Innovation
Platforms 2.0
Search, Social, Mobile
What’s a Platform?
Successful	
  Pla,orms	
  	
  
have	
  3	
  Things:	
                                         Features  	
  
                                                                    	
  
1)	
  Features	
                                                    	
  
2)	
  Users	
                                                       	
  
3)	
  Money	
                                                       	
  
                                                                    	
  
                                                         Growth	
   	
        Profit	
  
                                                                    	
  
                                                                                             Awesome	
  

                                                                                            Profitable	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
                 Users	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  .
                                                                                                                      	
  
                                                                                                                           .	
  	
  	
  	
  	
  	
  
                                                                                                    Growth	
   Money                                             	
  
Distribution Platforms
Customer Reach: 100M+

  •  Search: Google (SEO/SEM)

  •  Social: Facebook, Twitter, Zynga, LinkedIn

  •  Mobile: Apple (iPhone, iPad), Android

  •  Media: YouTube (Video), Blogs, Photos

  •  Comm: Email, Chat, SMS, Voice
DO Marketing!
                  (It’s Not Evil)

•    Marketing is Both Qualitative + Quantitative
•    Qualitative: Create Emotion, Drive Action
•    Quantitative: Measure Results of Action
•    Design (UX) & Distribution (MKTG) Matter
•    Volume (#), Cost ($), Conversion (%)
[ Interesting Shit. ]
Read Geoffrey Miller
Sex + Evolution + Consumer Mktg = Awesome Sauce
More Great Shit.
  Psychology + Comics
[The Lean Startup]
[Startup Metrics 4 Pirates]
Just Gimme the GOOD Metrics.
            Users, Pages, Clicks, Emails, $$$...?

         Q: Which of these is best? How do you know?
           •  1,000,000 one-time, unregistered unique visitors
           •  500,000 visitors who view 2+ pages / stay 10+ sec
the
good       •  200,000 visitors who clicked on a link or button
stuff.
           •  20,000 registered users w/ email address
           •  2,000 passionate fans who refer 5+ users / mo.
           •  1,000 monthly subscribers @ $5/mo
The Lean Startup
•    Talk to Customers; Discover Problems
•    Progress ≠ Features (Less = More)
•    Fast, Frequent Iteration (+ Feedback Loop)
•    Measure Conversion; Compare 2+ Options
•    Focus on Product/Market Fit (don’t “launch” b4)
•    Keep it Simple & Actionable
Discover Customers
(Steve Blank, SteveBlank.com)
Iterate, Dammit.
(Eric Ries, StartupLessonsLearned.com)


                 IDEAS




     LEARN                BUILD




       DATA
                          CODE


               MEASURE
Product/Market Fit b4 “Launch”
             (Sean Ellis, Startup-Marketing.com)




                        Growth

                     Transition to
                        Growth


                Product/Market Fit


Startup-Marketing.com
AARRR!: 5-Step Startup Metrics Model
                                                   SEO            Campaigns,
                                         SEM               PR      Contests                   Biz
                Social
               Networks                                                                       Dev
                                          Blogs                      Affiliates
             Apps &                                                                         Direct, Tel,
             Widgets                              Email                                         TV

                             Domains
                                                      ACQUISITION	
                                                   Viral	
  
                                                                                                                     Loops	
  




             Emails	
  &	
  Alerts	
                                  Homepage /                                                      Emails &
                                                                                                                                      widgets
                                                                     Landing Page

                                                                              Product                                 Affiliates,	
  
Blogs,	
  RSS,	
  
                                              n
News	
  Feeds	
                           ntio                                Features                                Contests	
  
                             R e te

                                                                 Ads,	
  Lead	
  Gen,	
                    Biz Dev
                 System	
  Events	
  &	
                         Subscriptions,	
  
               Time-­‐based	
  Features	
                         ECommerce	
  

                                                                  Website.com
Startup Metrics for Pirates

•    Acquisition: users come to site from various channels
•    Activation: users enjoy 1st visit: "happy” experience
•    Retention: users come back, visit site multiple times
•    Referral: users like product enough to refer others
•    Revenue: users conduct some monetization behavior

                                            AARRR!




      (note: If you’re in a hurry, Google
      “Startup Metrics” & watch 5m video)
One Step at a Time.

1.  Make a Good Product: Activation & Retention
2.  Market the Product: Acquisition & Referral
3.  Make Money: Revenue & Profitability

“You probably can’t save your Ass and your Face
at the same time… so choose carefully.” – DMC
Startup Challenges

Startups have problems in 3 key areas:
•  Management: Set Priorities, Define Key Metrics

•  Product: Build “Right” Features. Measure, Iterate.

•  Marketing: Distribution, Distribution, Distribution.
                 (Search, Social, Mobile)
Key Concepts

•    MVP = F(Customer, Problem, Time or $$$)
•    PMF = F(Customer, Solution, Alternatives)
•    AUX = F(Customer, Design/UX, Metrics)
•    ACQ = F(Customer, Campaign, Vol, Cost, Conv)
•    WIN! = F(Customer, Usage, Dist, Revenue)
[ Constructing MVP ]
Role: Founder / CEO
Q: Which Customers? Problems? Metrics? Why?
A: Focus on Critical Few Actionable Metrics
   (if you don’t use the metric to make a decision, it’s not actionable)


•  Hypothesize Customer Lifecycle
•  Target ~3-5 Conversion Events (tip: Less = More)
•  Test, Measure, Iterate to Improve
Optimize 4 Happiness
            (both User + Business)
                                                 $$$
•    Define States of User + Business Value
•    Prioritize (Estimate) Relative Value of Each State
•    Move Users: Lower Value -> Higher Value
•    Optimize for User Happiness + Business $$$
•    Achieve High Cust Value + Low ACQ$ @ Scale
What is Minimum Viable Product?
MVP = F(Customer, Problem, Time or $$$)
•  Focus on CUSTOMER
   –  Qualitative Discovery, Quantitative Validation

•  Get to know habits, problems, desires (FUN MATTERS)
   –  what causes pain? what causes pleasure?

•  Define 1-5 TESTABLE Conversion Metrics of Value
   –    Attention/Usage (session time, clicks)
   –    Customer Data (email, connect, profile)
   -    Revenue (direct or indirect)
   -    Retention (visits over time, cohort behavior)
   -    Referral (users evangelize to other users)

•  Note: Paid Solutions drive FOCUS (& pay rent)
Example Conversion Metrics
                  (note: *not* actuals… your mileage may vary)


  Stage                     Conversion Status                         Conv.   Est. Value
                                                                       %      (*not* cost)

Acquisition         Visitors -> Site/Widget/Landing Page              60%        $.05
                (2+ pages, 10+ sec, 1+ clicks = don’t abandon)

Activation              “Happy” 1st Visit; Usage/Signup               15%        $.25
              (clicks/time/pages, email/profile reg, feature usage)

Retention            Users Come Back; Multiple Visits                  5%         $1
                 (1-3x visits/mo; email/feed open rate / CTR)

 Referral                    Users Refer Others                        1%         $5
                       (cust sat >=8; viral K factor > 1; )

 Revenue                    Users Pay / Generate $$$                   2%         $50
                   (first txn, break-even, target profitability)
KILL A FEATURE.
               Something Sucks. Find It. KILL It.


•  STOP ADDING FEATURES.
•  Find the ONE THING that users LOVE.
•  How to figure out? TAKE. SHIT. AWAY.
•  When they SCREAM, you’ve FOUND it.
•  Then Bring it Back… Only Better.

•  Tip: KILL a Feature Every Week.
[ Getting 2 PMF ]
Role: Product / Eng / Design
Q: What Features to Build? Why? When are you “Done”?
A: Easy-to-Find, Fun/Useful, Unique Features that
   Increase Conversion (stop iterating when increase decelerates)

•  Wireframes = Conversion Steps
•  Measure, A/B Test, Iterate FAST (daily/weekly)
•  Optimize for Conversion Improvement
    –  80% on existing feature optimization
    –  20% on new feature development
What is Product/Market Fit?
PMF = F(Customer, Solution, Alternatives*)

•  Product / Market Fit occurs when:
   –  Customers like your stuff better than other options
   –  Not static, Not optimal – just Local Max 4 F(customers, solution, time)
   –  make sure you’re moving in optimal direction 2 local max
•  Q: what competitive solutions are available?
   –  … that your customers know about?
   –  how are you diff/same?
   –  in ways that people care about? (will pay for)


•  KILL a FEATURE regularly (or rotate 1% tests)
   –  Q: what is MOST $ cust pay 4 LEAST func MVP relative 2 BEST alt?


•  NICHE 2 WIN: RE-define cust + DIFFerentiated features
Better or Different.

                Funny!




                                  Shocking !!!
Accepted




               Not Funny.
[ Testing 4 AUX ]
Discover Meaning
         Why Should Users CARE About Your Product?




Kathy Sierra:
“Creating
Passionate
Users”
Discover Meaning
                Keywords, Images, Call-to-Action

Top 10 - 100 words                     Call-to-Action
    •  Your Brand / Products               •  Words
    •  Customer Needs / Benefits           •  Images
    •  Competitor’s Brand / Products       •  Context
    •  Semantic Equivalents                •  Button/Link
    •  Misspellings                        •  Emotion


Relevant images                        Result
    •  People                             •  Positive?
    •  Products                           •  Negative?
    •  Problems                           •  Neutral (= Death)
    •  Solutions                          •  A/B test & Iterate
How 2 Tell if Design/UX is Good?
AUX = F(Customer, Design/UX, Metrics)

•  Don’t "LAUNCH" Until Your Product Doesn't Suck.
   –    In fact, Stop Thinking about it as a Launch – it’s Continuous
   –    Define Metrics, Measurability for Design / UX
   –    Focus on Psychology of User
   –    Relative to Competitive Alternatives (that your customers know about)
   –    Keep Testing 4 Awesomeness! (Q: does it Rock Yet? )

•  RAMP Mktg & $$$ AFTER it’s clear your MVP is:
   –  Functional = useful for >1 customers
   –  Differentiated = better than other stuff availabile
   –  Awesome (see above)

•  Minimum Viable Design = Minimum Viable Awesomeness
   –  what's the crappiest thing u can release & still be awesome?
[ Metrics 4 ACQ ]
Role: Marketing / Sales

Q: What channels? Which users? Why?
A: High Volume (#), Low Cost ($), High Conv (%)

•     Design & Test Multiple Marketing Channels + Campaigns
•     Select & Focus on Best-Performing Channels & Themes
•     Optimize for conversion to target CTAs, not just site/landing page
•     Match/Drive channel cost to/below revenue potential

•     Low-Hanging Fruit:
     –  Blogs
     –  SEO/SEM
     –  Landing Pages
     –  Automated Emails
Example Marketing Channels


•    PR                   •    Email
•    Contest              •    SEO / SEM
•    Biz Dev              •    Blogs / Bloggers
•    Direct Marketing     •    Viral / Referral
•    Radio / TV / Print   •    Affiliate / CPA
•    Dedicated Sales      •    Widgets / Apps
•    Telemarketing        •    LOLCats ;)
MAARRRketing Plan
  ACQ = F(Customer, Campaign, Vol, Cost, Conv)
Marketing Plan = Target Customer Acquisition Channels
   •  3 Important Factors = Volume (#), Cost ($), Conversion (%)
   •  Measure conversion to target customer actions
   •  Test audience segments, campaign themes, Call-To-Action (CTAs)

[Gradually] Match Channel Costs => Revenue Potential
    •  Increase Vol. & Conversion, Decrease Cost, Optimize for Revenue Potential
    •  Avg Txn Value (ATV), Ann Rev Per User (ARPU), Cust Lifetime Value (CLV)
    •  Design channels that (eventually) cost <20-50% of target ATV, ARPU, CLV

Consider Costs, Scarce Resource Tradeoffs
   •  Actual $ expenses
   •  Marketing time & resources
   •  Product/Engineering time & resources
   •  Cashflow timing of expense vs. revenue, profit
[ What is WINNING? ]
Choose #WINNING Metrics

WIN = F(Customer, Usage, Dist, Revenue)

•  after MVP functional use, several options:
  –  better Usage – Activation & Retention (AUX)
  –  more Users -- Distribution / Acquisition
  –  mo' Money --- U Wants 2 Get Paid, Yo.


•  understand ACQ$ vs REV$, optimize 4 short-term
  –  High(er) volume usually a priority
  –  costs may change as vol increases
[ The Lean Investor ]
Startup 2.0:
       “Lean Investor” Model
Method: Invest in startups using incremental
 investment, iterative development. Start with
 lots of small experiments, filter out failure, and
 expand investment upon success.

•  Incubator: $0-250K (“Product Viability”)
•  Seed: $100K-$2M (“Expand Distribution”)
•  Venture: $1M-$5M (“Maximize Revenue”)
Investment #1: Incubate
                              (“Product”)
•  Structure
   –  1-3 founders
   –  $25K-$250K investment
   –  Incubator environment: multiple peers, mentors/advisors

•  Build Functional Prototype / “Minimum Viable Product” (MVP):
   –    Concept->Alpha, ~3-6 months
   –    Develop Minimal Critical Feature Set => Get to “It Works”
   –    Instrument Basic Dashboard, Conversion Metrics
   –    Test Cust. Adoption (10-1000 users) / Cust. Satisfaction (Scale: 1-10)

•  Demonstrate Concept, Reduce Product Risk, Test Functional Use
•  Develop Metrics & Filter for Follow-on Investment
Investment #2: Seed
•  Structure
                                (“Market”)
   –  2-5 person team
   –  $100K-$2M investment
   –  Syndicate of Angel Investors / Small VC Funds


•  Improve Product, Expand Market, Test Revenue:
   –    Alpha->Beta, ~6-12 months
   –    Customer Sat ≥ 6 => Get to “Doesn’t Suck”
   –    Setup A/B Testing Framework, Optimize Conversion
   –    Test Marketing Campaigns, Cust Acqstn Channels

•  Prove Solution/Benefit, Assess Market Size
•  Test Channel Cost, Revenue Opportunity
•  Determine Org Structure, Key Hires
Investment #3: Venture
                              (“Revenue”)
•  Structure
   –  5-10 person team
   –  $1M-$5M investment
   –  VC Investors


•  Make Money, Get to Sustainability:
   –    Beta->Production, 12-18 months
   –    Customer Sat ≥ 8 => “It Rocks, I’ll Tell My Friends”
   –    MktgPlan => Predictable Channels / Campaigns + Budget
   –    Scalability & Infrastructure, Customer Service & Operations
   –    Connect with Distribution Partners

•  Prove/Expand Market, Operationalize Business
•  Future Milestones: Profitable/Sustainable, Exit Options
NOTE:
    Don’t Pitch Me, Bro.
Seriously: Don’t. Fucking. Pitch Me.
     (and don’t email me either, cuz i won’t read it)
Links & Resources
Additional References:
•  Influence: The Psychology of Persuasion Robert Cialdini (book)
•  The Mating Mind Geoffrey Miller (book)
•  Putting the Fun in Functional Amy Jo Kim (etech 2006 preso)
•  Futuristic Play Andrew Chen (blog)
•  Don’t Make Me Think Steve Krug (book)
•  Designing for the Social Web Joshua Porter (book, website)
•  Startup Lessons Learned Eric Ries (blog)
•  Customer Development Methodology Steve Blank (presentation, blog)
•  Startup-Marketing.com Sean Ellis (blog)
•  KISSmetrics.com Hiten Shah / Neil Patel (website)
•  How To Pitch a VC Dave McClure (slides, NSFW)
•  Understanding Comics Scott McCloud (book)
Appendix
Startup Metrics

 Activation
Activation
                         SEO          Campaigns,
              SEM                PR    Contests        Biz
 Social
Networks                                               Dev
                Blogs                   Affiliates                      Activation Criteria:
Apps &                                               Direct, Tel,
Widgets                 Email                            TV             •  10-30+ seconds
          Domains                                                       •  2-3+ page views
                                                                        •  3-5+ clicks
                                                                        •  1 key feature usage
                                       Homepage /
                                      Landing Page

                                            Product
                                            Features

                                                                    do LOTS of landing page
                                                                    & A/B tests –
                                                                    make lots of dumb
                                                                    guesses & iterate FAST
                                  Website.com
Activation
          What do users do on their first visit?

Example Activation Goals
   •  Click on something!
   •  Account sign up / Emails
   •  Referrals / Tell a friend
   •  Widgets / Embeds
   •  Low Bounce Rate

Activation Tips
    •  Less is more
    •  Focus on user experience / usability
    •  Provide incentives & call to actions
    •  Test and iterate continuously
Activation
       What do users do on their first visit?


Key Metrics to Track
  ü Pages per visit
  ü Time on site
  ü Conversions
Activation
Tools
   Crazy Egg (Visual Click Mapping)
        http://crazyegg.com
   Google Website Optimizer (A/B & Multivariate Testing)
        http://google.com/websiteoptimizer
   Marketo.com (B2B Lead Generation Management)
        http://marketo.com


Resources
   Experimentation and Testing: A Primer
        kaushik.net/avinash/2006/05/experimentation-and-testing-a-primer.html
   Landing Page Design Toolbox: 100 Tips & Tools
        http://tinyurl.com/326co6
   Landing Page Tutorials & Case Studies
        http://www.copyblogger.com/landing-pages/
   101 Easy Easy to use Google Website Optimizer
        http://conversion-rate-experts.com/articles/101-google-website-optimizer-tips/
Startup Metrics

 Retention
Retention
                                                                                           SEO            Campaigns,
Automated emails:                                                                SEM              PR       Contests       Biz
                                                              Social
                                                             Networks                                                     Dev
•  lifecycle emails @ +3, +7, +30d                                                Blogs                    Affiliates
                                                           Apps &                                                       Direct, Tel,
•  status / “best of” weekly/monthly                       Widgets                        Email                             TV
•  “something happened” emails                                              Domains
     BUT:
•  make it easy to unsubscribe

                                                Emails	
  &	
  Alerts	
                                 Homepage /
                                                                                                       Landing Page

                                   Blogs,	
  RSS,	
                                                        Product
                                   News	
  Feeds	
                                                         Features

Tip on emails:
•  > 80% or more on SUBJECT LINE
                                                    System	
  Events	
  &	
  
•  < 20% or less on BODY TEXT                     Time-­‐based	
  Features	
  


                                                                                                   Website.com
Retention
            How do users come back? How often?


Cohort Analysis:
•  Distrib of Visits over Time
•  Rate of Decay
•  Effective Customer Lifecycle

Retention Methods
ü  Automated Emails
   * Track open rate / CTR / Quantity
ü  RSS / News Feeds
   * Track % viewed / CTR / Quantity
ü  Widgets / Embeds
   * Track impressions / CTR / Quantity
Retention
       How do users come back? How often?

Example Retention Goals
   •  1 - 3+ visits per month
   •  20% open rate / 2% CTR
   •  High deliverability / Low spam rating
   •  Long customer life cycle / Low decay
   •  Identify fanatics and cheerleaders

Retention Tips
   •  Email is simple and it works
   •  BUT make unsubscribe easy
   •  80% subject line / 20% body text
   •  ACTUALLY 99% subject line / 1% body text
   •  Fanatics = virality + affiliate channel (bloggers?)
Retention
        How do users come back? How often?

Key Metrics to Track
   ü  Source
   ü  Quantity
   ü  Conversions
   ü  Visitor Loyalty
   ü  Session Length
Retention
Tools
   Campaign Monitor / MailChimp (email newsletter software)
        campaignmonitor.com / mailchimp.com
   TriggerMail (site-centric email management)
        triggermail.net
   Litmus (email and website design testing - clients / browsers)
        litmusapp.com


Resources
   30 free HTML email templates
        campaignmonitor.com/resources/templates.aspx
   Best Practices in Writing Email Subject Lines
        mailchimp.com/resources/best-practices-in-writing-email-subject-lines.phtml
   Learning Viral: Viral Emails of Tagged.com
        okdork.com/2008/04/10/learning-viral-studying-taggedcom/
Startup Metrics

Acquisition
Acquisition
                         SEO         Campaigns,
              SEM               PR    Contests       Biz
 Social
Networks                                             Dev
                Blogs                 Affiliates
Apps &                                             Direct, Tel,
Widgets                 Email                          TV

          Domains




                                                   Marketing Channels:
                                                      •  largest-volume (#)
                                                      •  lowest-cost ($)
                                                      •  best-performing (%)


                          Website.com
Acquisition
        Where are users coming from?


Acquisition Methods
ü SEO / SEM
ü Blogs
ü Email
ü Social Media &
   Social Networks
ü Domains
Acquisition
                     Keyword Vocabulary


Top 10 - 100 words
    •  Your Brand / Products
    •  Customer Needs / Benefits
    •  Competitor’s Brand / Products
    •  Semantic Equivalents
    •  Misspellings

Things to analyze
    •  Sources
    •  Volume
    •  Cost
    •  Conversion
Acquisition
         Where are users coming from?



Key Metrics to Track           Example
  ü Quantity (#)
  ü Cost ($)
  ü Conversions (%)
Acquisition
Tools
   Google Analytics (web analytics)
        google.com/analytics
   Google Keyword Tool (keyword research tool)
        adwords.google.com/select/KeywordToolExternal
   SEO Book Tools (SEO related tools)
        tools.seobook.com


Resources
   SEO Book Blog
        seobook.com/blog
   The Social Media Manual: Read Before You Play
        searchengineland.com/071120-144401.php
   Strategies to ruthlessly acquire users
        andrewchen.typepad.com/andrew_chens_blog/2007/04/10_obvious_stra.html
Startup Metrics

  Referral
Referral
                                                   SEO                 Campaigns,
                                         SEM                   PR       Contests           Biz
                Social
               Networks                                                                    Dev
                                          Blogs                             Affiliates
             Apps &                                                                      Direct, Tel,
             Widgets                              Email                                      TV                  Viral	
  

                             Domains
                                                          Acquisition	
                                         Loops	
  




                                                                                                                                 Emails &
                                                                                                                                 widgets
             Emails	
  &	
  Alerts	
                                         Homepage /
                                                                            Landing Page
                                                                                                                 Affiliates,	
  
                                                                                   Product                       Contests	
  
Blogs,	
  RSS,	
  
                                               n
News	
  Feeds	
  
                                         e ntio                                    Features
                             Ret

                                                                                                        Focus on driving referrals
                 System	
  Events	
  &	
  
               Time-­‐based	
  Features	
  
                                                                                                        *after* users have a
                                                                                                        “happy” experience;
                                                                                                         avg score >= 8 out of 10
                                                                       Website.com
Referral
          How do users refer others?

Referral Methods
ü Send to Friend:
   Email / IM
ü Social Media
ü Widgets / Embeds
ü Affiliates
Referral
                       Viral Growth Factor

  Viral Growth Factor = X * Y * Z
     X = % of users who invite other people
     Y = average # of people that they invited
     Z = % of users who accepted an invitation




A viral growth factor > 1 means an exponential organic user acquisition.
Referral
Tools
   Gigya (social media distribution & tracking tool)
        gigya.com
   ShareThis / AddThis (sharing buttons)
        sharethis.com / addthis.com
   GetMyContacts (PHP contacts importing & invitation software)
        getmycontacts.com


Resources
   Seven Ways to GO VIRAL
        lsvp.wordpress.com/2007/03/02/seven-ways-to-go-viral/
   What’s your viral loop? Understanding the engine of adoption
        andrewchen.typepad.com/andrew_chens_blog/2007/07/whats-your-vira.html
   Metrics: Where Users Come From
        slideshare.net/guest2968b8/rockyou-snap-summit-32508
Startup Metrics

  Revenue
Revenue
                                                   SEO                 Campaigns,
                                         SEM                   PR       Contests                   Biz
                Social
               Networks                                                                            Dev
                                          Blogs                             Affiliates
             Apps &                                                                              Direct, Tel,
             Widgets                              Email                                              TV

                             Domains
                                                          Acquisition	
                                                    Viral	
  
                                                                                                                          Loops	
  




             Emails	
  &	
  Alerts	
                                         Homepage /                                                    Emails &
                                                                                                                                           widgets
                                                                            Landing Page

                                                                                   Product                                 Affiliates,	
  
Blogs,	
  RSS,	
  
                                              n
News	
  Feeds	
                           ntio                                     Features                                Contests	
  
                             Rete

                                                                      Ads,	
  Lead	
  Gen,	
                    Biz Dev
                 System	
  Events	
  &	
                              Subscriptions,	
  
               Time-­‐based	
  Features	
                              ECommerce	
  

           This is the part *you*                                      Website.com
           still have to figure out…
           (we don’t know jack
           about your business)
Revenue
                How do you make money?


Revenue Tips
  •    Don’t Rely on AdSense (only)
  •    Start Free => 2% “Freemium”
  •    Subscription / Recurring transactions
  •    Qualify your customers -> Lead generation (arbitrage)
  •    Sell something! (physical or virtual)
Revenue
Resources & Tools
   Revenue Metrics (Andrew Chen)
      http://tinyurl.com/47r63a
   How to Create a Profitable “Freemium” Startup (Andrew Chen)
      http://tinyurl.com/8z9ygk
   2008 Affiliate Marketing Review (Scott Jangro)
      http://tinyurl.com/86wak4

Contenu connexe

Tendances

Startup Metrics for Pirates (Sept 2010, Vancouver)
Startup Metrics for Pirates (Sept 2010, Vancouver)Startup Metrics for Pirates (Sept 2010, Vancouver)
Startup Metrics for Pirates (Sept 2010, Vancouver)Dave McClure
 
Silicon Valley 2.0: Make Lots of Little Bets.
Silicon Valley 2.0: Make Lots of Little Bets.Silicon Valley 2.0: Make Lots of Little Bets.
Silicon Valley 2.0: Make Lots of Little Bets.Dave McClure
 
Startup Metrics for Pirates (Aug 2010)
Startup Metrics for Pirates (Aug 2010)Startup Metrics for Pirates (Aug 2010)
Startup Metrics for Pirates (Aug 2010)Dave McClure
 
The Lean VC (Sapporo, May 2011)
The Lean VC (Sapporo, May 2011)The Lean VC (Sapporo, May 2011)
The Lean VC (Sapporo, May 2011)Dave McClure
 
Building 500 Startups + Changes in VC
Building 500 Startups + Changes in VCBuilding 500 Startups + Changes in VC
Building 500 Startups + Changes in VCDave McClure
 
Changes in Venture Capital & Tech Startups (Nov 2013, Mumbai)
Changes in Venture Capital & Tech Startups (Nov 2013, Mumbai)Changes in Venture Capital & Tech Startups (Nov 2013, Mumbai)
Changes in Venture Capital & Tech Startups (Nov 2013, Mumbai)Dave McClure
 
Startup 2.0: From Silicon Valley to Hong Kong
Startup 2.0: From Silicon Valley to Hong KongStartup 2.0: From Silicon Valley to Hong Kong
Startup 2.0: From Silicon Valley to Hong KongDave McClure
 
Startup Metrics for Pirates (Chicago, Aug 2010)
Startup Metrics for Pirates (Chicago, Aug 2010)Startup Metrics for Pirates (Chicago, Aug 2010)
Startup Metrics for Pirates (Chicago, Aug 2010)Dave McClure
 
Investing in Tech Startups + Corporate Innovation (with SVB)
Investing in Tech Startups + Corporate Innovation (with SVB)Investing in Tech Startups + Corporate Innovation (with SVB)
Investing in Tech Startups + Corporate Innovation (with SVB)Dave McClure
 
DO Marketing (It's Not Evil)
DO Marketing (It's Not Evil)DO Marketing (It's Not Evil)
DO Marketing (It's Not Evil)Dave McClure
 
Startup Metrics 4 Pirates (July 2010)
Startup Metrics 4 Pirates (July 2010)Startup Metrics 4 Pirates (July 2010)
Startup Metrics 4 Pirates (July 2010)Dave McClure
 
Startup Metrics for Pirates (Brazil, Nov 2011)
Startup Metrics for Pirates (Brazil, Nov 2011)Startup Metrics for Pirates (Brazil, Nov 2011)
Startup Metrics for Pirates (Brazil, Nov 2011)Dave McClure
 
Startup Local or Global? Do BOTH!
Startup Local or Global? Do BOTH!Startup Local or Global? Do BOTH!
Startup Local or Global? Do BOTH!Dave McClure
 
Startup Metrics For Scottish Pirates (AARRR!) v1.3
Startup Metrics For Scottish Pirates (AARRR!) v1.3Startup Metrics For Scottish Pirates (AARRR!) v1.3
Startup Metrics For Scottish Pirates (AARRR!) v1.3Dave McClure
 
The Lean Investor (Dallas, Nov 2014)
The Lean Investor (Dallas, Nov 2014)The Lean Investor (Dallas, Nov 2014)
The Lean Investor (Dallas, Nov 2014)Dave McClure
 
Startup Metrics for Pirates (March 2009)
Startup Metrics for Pirates (March 2009)Startup Metrics for Pirates (March 2009)
Startup Metrics for Pirates (March 2009)Dave McClure
 
Silicon Valley 2.0: Lean Startup, Lean VC
Silicon Valley 2.0: Lean Startup, Lean VCSilicon Valley 2.0: Lean Startup, Lean VC
Silicon Valley 2.0: Lean Startup, Lean VCDave McClure
 
The Lean VC: a Silicon Valley 2.0 Story
The Lean VC: a Silicon Valley 2.0 StoryThe Lean VC: a Silicon Valley 2.0 Story
The Lean VC: a Silicon Valley 2.0 StoryDave McClure
 
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...Dave McClure
 
Startup Metrics for Pirates (Startonomics Beijing, June 2009)
Startup Metrics for Pirates (Startonomics Beijing, June 2009)Startup Metrics for Pirates (Startonomics Beijing, June 2009)
Startup Metrics for Pirates (Startonomics Beijing, June 2009)Dave McClure
 

Tendances (20)

Startup Metrics for Pirates (Sept 2010, Vancouver)
Startup Metrics for Pirates (Sept 2010, Vancouver)Startup Metrics for Pirates (Sept 2010, Vancouver)
Startup Metrics for Pirates (Sept 2010, Vancouver)
 
Silicon Valley 2.0: Make Lots of Little Bets.
Silicon Valley 2.0: Make Lots of Little Bets.Silicon Valley 2.0: Make Lots of Little Bets.
Silicon Valley 2.0: Make Lots of Little Bets.
 
Startup Metrics for Pirates (Aug 2010)
Startup Metrics for Pirates (Aug 2010)Startup Metrics for Pirates (Aug 2010)
Startup Metrics for Pirates (Aug 2010)
 
The Lean VC (Sapporo, May 2011)
The Lean VC (Sapporo, May 2011)The Lean VC (Sapporo, May 2011)
The Lean VC (Sapporo, May 2011)
 
Building 500 Startups + Changes in VC
Building 500 Startups + Changes in VCBuilding 500 Startups + Changes in VC
Building 500 Startups + Changes in VC
 
Changes in Venture Capital & Tech Startups (Nov 2013, Mumbai)
Changes in Venture Capital & Tech Startups (Nov 2013, Mumbai)Changes in Venture Capital & Tech Startups (Nov 2013, Mumbai)
Changes in Venture Capital & Tech Startups (Nov 2013, Mumbai)
 
Startup 2.0: From Silicon Valley to Hong Kong
Startup 2.0: From Silicon Valley to Hong KongStartup 2.0: From Silicon Valley to Hong Kong
Startup 2.0: From Silicon Valley to Hong Kong
 
Startup Metrics for Pirates (Chicago, Aug 2010)
Startup Metrics for Pirates (Chicago, Aug 2010)Startup Metrics for Pirates (Chicago, Aug 2010)
Startup Metrics for Pirates (Chicago, Aug 2010)
 
Investing in Tech Startups + Corporate Innovation (with SVB)
Investing in Tech Startups + Corporate Innovation (with SVB)Investing in Tech Startups + Corporate Innovation (with SVB)
Investing in Tech Startups + Corporate Innovation (with SVB)
 
DO Marketing (It's Not Evil)
DO Marketing (It's Not Evil)DO Marketing (It's Not Evil)
DO Marketing (It's Not Evil)
 
Startup Metrics 4 Pirates (July 2010)
Startup Metrics 4 Pirates (July 2010)Startup Metrics 4 Pirates (July 2010)
Startup Metrics 4 Pirates (July 2010)
 
Startup Metrics for Pirates (Brazil, Nov 2011)
Startup Metrics for Pirates (Brazil, Nov 2011)Startup Metrics for Pirates (Brazil, Nov 2011)
Startup Metrics for Pirates (Brazil, Nov 2011)
 
Startup Local or Global? Do BOTH!
Startup Local or Global? Do BOTH!Startup Local or Global? Do BOTH!
Startup Local or Global? Do BOTH!
 
Startup Metrics For Scottish Pirates (AARRR!) v1.3
Startup Metrics For Scottish Pirates (AARRR!) v1.3Startup Metrics For Scottish Pirates (AARRR!) v1.3
Startup Metrics For Scottish Pirates (AARRR!) v1.3
 
The Lean Investor (Dallas, Nov 2014)
The Lean Investor (Dallas, Nov 2014)The Lean Investor (Dallas, Nov 2014)
The Lean Investor (Dallas, Nov 2014)
 
Startup Metrics for Pirates (March 2009)
Startup Metrics for Pirates (March 2009)Startup Metrics for Pirates (March 2009)
Startup Metrics for Pirates (March 2009)
 
Silicon Valley 2.0: Lean Startup, Lean VC
Silicon Valley 2.0: Lean Startup, Lean VCSilicon Valley 2.0: Lean Startup, Lean VC
Silicon Valley 2.0: Lean Startup, Lean VC
 
The Lean VC: a Silicon Valley 2.0 Story
The Lean VC: a Silicon Valley 2.0 StoryThe Lean VC: a Silicon Valley 2.0 Story
The Lean VC: a Silicon Valley 2.0 Story
 
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
 
Startup Metrics for Pirates (Startonomics Beijing, June 2009)
Startup Metrics for Pirates (Startonomics Beijing, June 2009)Startup Metrics for Pirates (Startonomics Beijing, June 2009)
Startup Metrics for Pirates (Startonomics Beijing, June 2009)
 

En vedette

Feria de Empleo de Plasencia - Emprendimiento
Feria de Empleo de Plasencia - EmprendimientoFeria de Empleo de Plasencia - Emprendimiento
Feria de Empleo de Plasencia - EmprendimientoPayPerThink
 
Praesentation : Fit fuer den Auftritt
Praesentation : Fit fuer den AuftrittPraesentation : Fit fuer den Auftritt
Praesentation : Fit fuer den AuftrittHeiko Luedemann
 
Caracteristicas de los animales
Caracteristicas de los animalesCaracteristicas de los animales
Caracteristicas de los animalesAyleen
 
Relaunch Corporate Website: Arbeitsweise und Vorgehen JP│KOM
Relaunch Corporate Website: Arbeitsweise und Vorgehen JP│KOMRelaunch Corporate Website: Arbeitsweise und Vorgehen JP│KOM
Relaunch Corporate Website: Arbeitsweise und Vorgehen JP│KOMJP KOM GmbH
 
Allgeier Flyer Rechnungseingangsverarbeitung
Allgeier Flyer RechnungseingangsverarbeitungAllgeier Flyer Rechnungseingangsverarbeitung
Allgeier Flyer RechnungseingangsverarbeitungAndré Schmid
 

En vedette (7)

Kpc 11
Kpc 11Kpc 11
Kpc 11
 
Animals web
Animals webAnimals web
Animals web
 
Feria de Empleo de Plasencia - Emprendimiento
Feria de Empleo de Plasencia - EmprendimientoFeria de Empleo de Plasencia - Emprendimiento
Feria de Empleo de Plasencia - Emprendimiento
 
Praesentation : Fit fuer den Auftritt
Praesentation : Fit fuer den AuftrittPraesentation : Fit fuer den Auftritt
Praesentation : Fit fuer den Auftritt
 
Caracteristicas de los animales
Caracteristicas de los animalesCaracteristicas de los animales
Caracteristicas de los animales
 
Relaunch Corporate Website: Arbeitsweise und Vorgehen JP│KOM
Relaunch Corporate Website: Arbeitsweise und Vorgehen JP│KOMRelaunch Corporate Website: Arbeitsweise und Vorgehen JP│KOM
Relaunch Corporate Website: Arbeitsweise und Vorgehen JP│KOM
 
Allgeier Flyer Rechnungseingangsverarbeitung
Allgeier Flyer RechnungseingangsverarbeitungAllgeier Flyer Rechnungseingangsverarbeitung
Allgeier Flyer Rechnungseingangsverarbeitung
 

Similaire à Startup Metrics for Pirates (Sept 2012)

Startup Metrics for Pirates (Nov 2012)
Startup Metrics for Pirates (Nov 2012)Startup Metrics for Pirates (Nov 2012)
Startup Metrics for Pirates (Nov 2012)Dave McClure
 
Startupmetrics101aarrr
Startupmetrics101aarrrStartupmetrics101aarrr
Startupmetrics101aarrrTodd Lewis
 
Startup Metrics for Pirates (SeedCamp, Sept 2009)
Startup Metrics for Pirates (SeedCamp, Sept 2009)Startup Metrics for Pirates (SeedCamp, Sept 2009)
Startup Metrics for Pirates (SeedCamp, Sept 2009)Dave McClure
 
The Startup Metrics Religion
The Startup Metrics ReligionThe Startup Metrics Religion
The Startup Metrics ReligionChikPea
 
Startup Metrics 4 Pirates
Startup Metrics 4 PiratesStartup Metrics 4 Pirates
Startup Metrics 4 Piratescaquino23
 
SaaS and the quest for freemium
SaaS and the quest for freemiumSaaS and the quest for freemium
SaaS and the quest for freemiumKelly Schwedland
 
Startup Metrics for Pirates (Startonomics Beijing, June 2009)
Startup Metrics for Pirates (Startonomics Beijing, June 2009)Startup Metrics for Pirates (Startonomics Beijing, June 2009)
Startup Metrics for Pirates (Startonomics Beijing, June 2009)Geeks On A Plane
 
Silicon Valley 2.0: Lean Startup, Lean VC
Silicon Valley 2.0: Lean Startup, Lean VCSilicon Valley 2.0: Lean Startup, Lean VC
Silicon Valley 2.0: Lean Startup, Lean VCDave McClure
 
Startup 2.0: A Silicon Valley Story (Oct 2009)
Startup 2.0: A Silicon Valley Story (Oct 2009)Startup 2.0: A Silicon Valley Story (Oct 2009)
Startup 2.0: A Silicon Valley Story (Oct 2009)Dave McClure
 
Startup 2.0: A Silicon Valley Story
Startup 2.0: A Silicon Valley StoryStartup 2.0: A Silicon Valley Story
Startup 2.0: A Silicon Valley StoryBryan Watson
 
LeanVC : Dave McClure opens TEC SF Chapter
LeanVC : Dave McClure opens TEC SF ChapterLeanVC : Dave McClure opens TEC SF Chapter
LeanVC : Dave McClure opens TEC SF ChapterStas Khirman
 
Silicon Valley 2.0: The Lean VC (Waterloo)
Silicon Valley 2.0: The Lean VC (Waterloo)Silicon Valley 2.0: The Lean VC (Waterloo)
Silicon Valley 2.0: The Lean VC (Waterloo)Dave McClure
 
Week 2 Biz Models and Metrics
Week 2 Biz Models and MetricsWeek 2 Biz Models and Metrics
Week 2 Biz Models and MetricsTetuanValley
 
Fall 2012 week 2 Biz Models and Metrics
Fall 2012 week 2 Biz Models and MetricsFall 2012 week 2 Biz Models and Metrics
Fall 2012 week 2 Biz Models and MetricsTetuanValley
 
Venture Capital 2.0: The Lean VC
Venture Capital 2.0: The Lean VCVenture Capital 2.0: The Lean VC
Venture Capital 2.0: The Lean VCDave McClure
 
Silicon Valley 2.0 -- The Lean VC
Silicon Valley 2.0 -- The Lean VCSilicon Valley 2.0 -- The Lean VC
Silicon Valley 2.0 -- The Lean VCDave McClure
 
Luis Rivera. Cómo no arruinarse invirtiendo en negocios en Internet.
Luis Rivera. Cómo no arruinarse invirtiendo en negocios en Internet. Luis Rivera. Cómo no arruinarse invirtiendo en negocios en Internet.
Luis Rivera. Cómo no arruinarse invirtiendo en negocios en Internet. SalonMiEmpresa
 
Salon mi empresa como no arruinarse invirtiendo en negocios basados en inter...
Salon mi empresa  como no arruinarse invirtiendo en negocios basados en inter...Salon mi empresa  como no arruinarse invirtiendo en negocios basados en inter...
Salon mi empresa como no arruinarse invirtiendo en negocios basados en inter...Luis Rivera
 
Startup 2.0: a Silicon Valley Story
Startup 2.0: a Silicon Valley StoryStartup 2.0: a Silicon Valley Story
Startup 2.0: a Silicon Valley StoryDave McClure
 

Similaire à Startup Metrics for Pirates (Sept 2012) (20)

Startup Metrics for Pirates (Nov 2012)
Startup Metrics for Pirates (Nov 2012)Startup Metrics for Pirates (Nov 2012)
Startup Metrics for Pirates (Nov 2012)
 
Startupmetrics101aarrr
Startupmetrics101aarrrStartupmetrics101aarrr
Startupmetrics101aarrr
 
Metrics - Hands On
Metrics - Hands OnMetrics - Hands On
Metrics - Hands On
 
Startup Metrics for Pirates (SeedCamp, Sept 2009)
Startup Metrics for Pirates (SeedCamp, Sept 2009)Startup Metrics for Pirates (SeedCamp, Sept 2009)
Startup Metrics for Pirates (SeedCamp, Sept 2009)
 
The Startup Metrics Religion
The Startup Metrics ReligionThe Startup Metrics Religion
The Startup Metrics Religion
 
Startup Metrics 4 Pirates
Startup Metrics 4 PiratesStartup Metrics 4 Pirates
Startup Metrics 4 Pirates
 
SaaS and the quest for freemium
SaaS and the quest for freemiumSaaS and the quest for freemium
SaaS and the quest for freemium
 
Startup Metrics for Pirates (Startonomics Beijing, June 2009)
Startup Metrics for Pirates (Startonomics Beijing, June 2009)Startup Metrics for Pirates (Startonomics Beijing, June 2009)
Startup Metrics for Pirates (Startonomics Beijing, June 2009)
 
Silicon Valley 2.0: Lean Startup, Lean VC
Silicon Valley 2.0: Lean Startup, Lean VCSilicon Valley 2.0: Lean Startup, Lean VC
Silicon Valley 2.0: Lean Startup, Lean VC
 
Startup 2.0: A Silicon Valley Story (Oct 2009)
Startup 2.0: A Silicon Valley Story (Oct 2009)Startup 2.0: A Silicon Valley Story (Oct 2009)
Startup 2.0: A Silicon Valley Story (Oct 2009)
 
Startup 2.0: A Silicon Valley Story
Startup 2.0: A Silicon Valley StoryStartup 2.0: A Silicon Valley Story
Startup 2.0: A Silicon Valley Story
 
LeanVC : Dave McClure opens TEC SF Chapter
LeanVC : Dave McClure opens TEC SF ChapterLeanVC : Dave McClure opens TEC SF Chapter
LeanVC : Dave McClure opens TEC SF Chapter
 
Silicon Valley 2.0: The Lean VC (Waterloo)
Silicon Valley 2.0: The Lean VC (Waterloo)Silicon Valley 2.0: The Lean VC (Waterloo)
Silicon Valley 2.0: The Lean VC (Waterloo)
 
Week 2 Biz Models and Metrics
Week 2 Biz Models and MetricsWeek 2 Biz Models and Metrics
Week 2 Biz Models and Metrics
 
Fall 2012 week 2 Biz Models and Metrics
Fall 2012 week 2 Biz Models and MetricsFall 2012 week 2 Biz Models and Metrics
Fall 2012 week 2 Biz Models and Metrics
 
Venture Capital 2.0: The Lean VC
Venture Capital 2.0: The Lean VCVenture Capital 2.0: The Lean VC
Venture Capital 2.0: The Lean VC
 
Silicon Valley 2.0 -- The Lean VC
Silicon Valley 2.0 -- The Lean VCSilicon Valley 2.0 -- The Lean VC
Silicon Valley 2.0 -- The Lean VC
 
Luis Rivera. Cómo no arruinarse invirtiendo en negocios en Internet.
Luis Rivera. Cómo no arruinarse invirtiendo en negocios en Internet. Luis Rivera. Cómo no arruinarse invirtiendo en negocios en Internet.
Luis Rivera. Cómo no arruinarse invirtiendo en negocios en Internet.
 
Salon mi empresa como no arruinarse invirtiendo en negocios basados en inter...
Salon mi empresa  como no arruinarse invirtiendo en negocios basados en inter...Salon mi empresa  como no arruinarse invirtiendo en negocios basados en inter...
Salon mi empresa como no arruinarse invirtiendo en negocios basados en inter...
 
Startup 2.0: a Silicon Valley Story
Startup 2.0: a Silicon Valley StoryStartup 2.0: a Silicon Valley Story
Startup 2.0: a Silicon Valley Story
 

Plus de Dave McClure

How to VC: Creating a VC fund portfolio model
How to VC: Creating a VC fund portfolio modelHow to VC: Creating a VC fund portfolio model
How to VC: Creating a VC fund portfolio modelDave McClure
 
VC Marketing and Branding Strategies
VC Marketing and Branding StrategiesVC Marketing and Branding Strategies
VC Marketing and Branding StrategiesDave McClure
 
The Helpful VC (June 2019)
The Helpful VC (June 2019)The Helpful VC (June 2019)
The Helpful VC (June 2019)Dave McClure
 
Skip the J-Curve: An Intro to Venture Capital Secondary
Skip the J-Curve: An Intro to Venture Capital SecondarySkip the J-Curve: An Intro to Venture Capital Secondary
Skip the J-Curve: An Intro to Venture Capital SecondaryDave McClure
 
Tech and Venture Capital in the Time of Corona
Tech and Venture Capital in the Time of Corona Tech and Venture Capital in the Time of Corona
Tech and Venture Capital in the Time of Corona Dave McClure
 
Bringing Silicon Valley to LatAm: Startup Ecosystems & Investment
 Bringing Silicon Valley to LatAm: Startup Ecosystems & Investment Bringing Silicon Valley to LatAm: Startup Ecosystems & Investment
Bringing Silicon Valley to LatAm: Startup Ecosystems & InvestmentDave McClure
 
Building #500STRONG
Building #500STRONGBuilding #500STRONG
Building #500STRONGDave McClure
 
Take a Walk on the Dark Side: Branding for Startups & Sith Lords
Take a Walk on the Dark Side: Branding for Startups & Sith LordsTake a Walk on the Dark Side: Branding for Startups & Sith Lords
Take a Walk on the Dark Side: Branding for Startups & Sith LordsDave McClure
 
Startup & VC Tech Trends
Startup & VC Tech Trends Startup & VC Tech Trends
Startup & VC Tech Trends Dave McClure
 
Farming Unicorns: Building Startup & Investor Ecosystems for Emerging Markets
Farming Unicorns: Building Startup & Investor Ecosystems for Emerging MarketsFarming Unicorns: Building Startup & Investor Ecosystems for Emerging Markets
Farming Unicorns: Building Startup & Investor Ecosystems for Emerging MarketsDave McClure
 
Farming Unicorns in Emerging Markets (Dubai, Oct 2016) #Gitex
Farming Unicorns in Emerging Markets (Dubai, Oct 2016) #GitexFarming Unicorns in Emerging Markets (Dubai, Oct 2016) #Gitex
Farming Unicorns in Emerging Markets (Dubai, Oct 2016) #GitexDave McClure
 
The Unicorn Hedge: Why Are Corporations Buying Unicorns? (Madrid, Oct 2016)
The Unicorn Hedge: Why Are Corporations Buying Unicorns? (Madrid, Oct 2016)The Unicorn Hedge: Why Are Corporations Buying Unicorns? (Madrid, Oct 2016)
The Unicorn Hedge: Why Are Corporations Buying Unicorns? (Madrid, Oct 2016)Dave McClure
 
Farming Unicorns: Building Startup & Investor Ecosystems
Farming Unicorns: Building Startup & Investor EcosystemsFarming Unicorns: Building Startup & Investor Ecosystems
Farming Unicorns: Building Startup & Investor EcosystemsDave McClure
 
500 Startups #Batch17 #DemoDay: "Beauty and the GEEK"
500 Startups #Batch17 #DemoDay: "Beauty and the GEEK"500 Startups #Batch17 #DemoDay: "Beauty and the GEEK"
500 Startups #Batch17 #DemoDay: "Beauty and the GEEK"Dave McClure
 
Farming Unicorns: Building Startup & Investor Ecosystems (Stanford, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Stanford, June 2016)Farming Unicorns: Building Startup & Investor Ecosystems (Stanford, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Stanford, June 2016)Dave McClure
 
Dinosaurs vs Unicorns aka "Bubble My Ass, All Dinosaurs Gonna Die" (London, J...
Dinosaurs vs Unicorns aka "Bubble My Ass, All Dinosaurs Gonna Die" (London, J...Dinosaurs vs Unicorns aka "Bubble My Ass, All Dinosaurs Gonna Die" (London, J...
Dinosaurs vs Unicorns aka "Bubble My Ass, All Dinosaurs Gonna Die" (London, J...Dave McClure
 
Farming Unicorns: Building Startup & Investor Ecosystems (Madrid, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Madrid, June 2016)Farming Unicorns: Building Startup & Investor Ecosystems (Madrid, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Madrid, June 2016)Dave McClure
 
Farming Unicorns: Building Startup & Investor Ecosystems (Dublin, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Dublin, June 2016)Farming Unicorns: Building Startup & Investor Ecosystems (Dublin, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Dublin, June 2016)Dave McClure
 
500 Startups / Batch 16 Demo Day (Q1/2016 update)
500 Startups / Batch 16 Demo Day (Q1/2016 update)500 Startups / Batch 16 Demo Day (Q1/2016 update)
500 Startups / Batch 16 Demo Day (Q1/2016 update)Dave McClure
 

Plus de Dave McClure (20)

How to VC: Creating a VC fund portfolio model
How to VC: Creating a VC fund portfolio modelHow to VC: Creating a VC fund portfolio model
How to VC: Creating a VC fund portfolio model
 
VC Marketing and Branding Strategies
VC Marketing and Branding StrategiesVC Marketing and Branding Strategies
VC Marketing and Branding Strategies
 
The Helpful VC (June 2019)
The Helpful VC (June 2019)The Helpful VC (June 2019)
The Helpful VC (June 2019)
 
Skip the J-Curve: An Intro to Venture Capital Secondary
Skip the J-Curve: An Intro to Venture Capital SecondarySkip the J-Curve: An Intro to Venture Capital Secondary
Skip the J-Curve: An Intro to Venture Capital Secondary
 
Tech and Venture Capital in the Time of Corona
Tech and Venture Capital in the Time of Corona Tech and Venture Capital in the Time of Corona
Tech and Venture Capital in the Time of Corona
 
The Helpful VC
The Helpful VC The Helpful VC
The Helpful VC
 
Bringing Silicon Valley to LatAm: Startup Ecosystems & Investment
 Bringing Silicon Valley to LatAm: Startup Ecosystems & Investment Bringing Silicon Valley to LatAm: Startup Ecosystems & Investment
Bringing Silicon Valley to LatAm: Startup Ecosystems & Investment
 
Building #500STRONG
Building #500STRONGBuilding #500STRONG
Building #500STRONG
 
Take a Walk on the Dark Side: Branding for Startups & Sith Lords
Take a Walk on the Dark Side: Branding for Startups & Sith LordsTake a Walk on the Dark Side: Branding for Startups & Sith Lords
Take a Walk on the Dark Side: Branding for Startups & Sith Lords
 
Startup & VC Tech Trends
Startup & VC Tech Trends Startup & VC Tech Trends
Startup & VC Tech Trends
 
Farming Unicorns: Building Startup & Investor Ecosystems for Emerging Markets
Farming Unicorns: Building Startup & Investor Ecosystems for Emerging MarketsFarming Unicorns: Building Startup & Investor Ecosystems for Emerging Markets
Farming Unicorns: Building Startup & Investor Ecosystems for Emerging Markets
 
Farming Unicorns in Emerging Markets (Dubai, Oct 2016) #Gitex
Farming Unicorns in Emerging Markets (Dubai, Oct 2016) #GitexFarming Unicorns in Emerging Markets (Dubai, Oct 2016) #Gitex
Farming Unicorns in Emerging Markets (Dubai, Oct 2016) #Gitex
 
The Unicorn Hedge: Why Are Corporations Buying Unicorns? (Madrid, Oct 2016)
The Unicorn Hedge: Why Are Corporations Buying Unicorns? (Madrid, Oct 2016)The Unicorn Hedge: Why Are Corporations Buying Unicorns? (Madrid, Oct 2016)
The Unicorn Hedge: Why Are Corporations Buying Unicorns? (Madrid, Oct 2016)
 
Farming Unicorns: Building Startup & Investor Ecosystems
Farming Unicorns: Building Startup & Investor EcosystemsFarming Unicorns: Building Startup & Investor Ecosystems
Farming Unicorns: Building Startup & Investor Ecosystems
 
500 Startups #Batch17 #DemoDay: "Beauty and the GEEK"
500 Startups #Batch17 #DemoDay: "Beauty and the GEEK"500 Startups #Batch17 #DemoDay: "Beauty and the GEEK"
500 Startups #Batch17 #DemoDay: "Beauty and the GEEK"
 
Farming Unicorns: Building Startup & Investor Ecosystems (Stanford, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Stanford, June 2016)Farming Unicorns: Building Startup & Investor Ecosystems (Stanford, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Stanford, June 2016)
 
Dinosaurs vs Unicorns aka "Bubble My Ass, All Dinosaurs Gonna Die" (London, J...
Dinosaurs vs Unicorns aka "Bubble My Ass, All Dinosaurs Gonna Die" (London, J...Dinosaurs vs Unicorns aka "Bubble My Ass, All Dinosaurs Gonna Die" (London, J...
Dinosaurs vs Unicorns aka "Bubble My Ass, All Dinosaurs Gonna Die" (London, J...
 
Farming Unicorns: Building Startup & Investor Ecosystems (Madrid, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Madrid, June 2016)Farming Unicorns: Building Startup & Investor Ecosystems (Madrid, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Madrid, June 2016)
 
Farming Unicorns: Building Startup & Investor Ecosystems (Dublin, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Dublin, June 2016)Farming Unicorns: Building Startup & Investor Ecosystems (Dublin, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Dublin, June 2016)
 
500 Startups / Batch 16 Demo Day (Q1/2016 update)
500 Startups / Batch 16 Demo Day (Q1/2016 update)500 Startups / Batch 16 Demo Day (Q1/2016 update)
500 Startups / Batch 16 Demo Day (Q1/2016 update)
 

Dernier

Linked Data in Production: Moving Beyond Ontologies
Linked Data in Production: Moving Beyond OntologiesLinked Data in Production: Moving Beyond Ontologies
Linked Data in Production: Moving Beyond OntologiesDavid Newbury
 
Nanopower In Semiconductor Industry.pdf
Nanopower  In Semiconductor Industry.pdfNanopower  In Semiconductor Industry.pdf
Nanopower In Semiconductor Industry.pdfPedro Manuel
 
Do we need a new standard for visualizing the invisible?
Do we need a new standard for visualizing the invisible?Do we need a new standard for visualizing the invisible?
Do we need a new standard for visualizing the invisible?SANGHEE SHIN
 
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019IES VE
 
UiPath Studio Web workshop series - Day 7
UiPath Studio Web workshop series - Day 7UiPath Studio Web workshop series - Day 7
UiPath Studio Web workshop series - Day 7DianaGray10
 
Using IESVE for Loads, Sizing and Heat Pump Modeling to Achieve Decarbonization
Using IESVE for Loads, Sizing and Heat Pump Modeling to Achieve DecarbonizationUsing IESVE for Loads, Sizing and Heat Pump Modeling to Achieve Decarbonization
Using IESVE for Loads, Sizing and Heat Pump Modeling to Achieve DecarbonizationIES VE
 
GenAI and AI GCC State of AI_Object Automation Inc
GenAI and AI GCC State of AI_Object Automation IncGenAI and AI GCC State of AI_Object Automation Inc
GenAI and AI GCC State of AI_Object Automation IncObject Automation
 
Crea il tuo assistente AI con lo Stregatto (open source python framework)
Crea il tuo assistente AI con lo Stregatto (open source python framework)Crea il tuo assistente AI con lo Stregatto (open source python framework)
Crea il tuo assistente AI con lo Stregatto (open source python framework)Commit University
 
Connector Corner: Extending LLM automation use cases with UiPath GenAI connec...
Connector Corner: Extending LLM automation use cases with UiPath GenAI connec...Connector Corner: Extending LLM automation use cases with UiPath GenAI connec...
Connector Corner: Extending LLM automation use cases with UiPath GenAI connec...DianaGray10
 
Spring24-Release Overview - Wellingtion User Group-1.pdf
Spring24-Release Overview - Wellingtion User Group-1.pdfSpring24-Release Overview - Wellingtion User Group-1.pdf
Spring24-Release Overview - Wellingtion User Group-1.pdfAnna Loughnan Colquhoun
 
Designing A Time bound resource download URL
Designing A Time bound resource download URLDesigning A Time bound resource download URL
Designing A Time bound resource download URLRuncy Oommen
 
OpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability AdventureOpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability AdventureEric D. Schabell
 
AI Fame Rush Review – Virtual Influencer Creation In Just Minutes
AI Fame Rush Review – Virtual Influencer Creation In Just MinutesAI Fame Rush Review – Virtual Influencer Creation In Just Minutes
AI Fame Rush Review – Virtual Influencer Creation In Just MinutesMd Hossain Ali
 
COMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a WebsiteCOMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a Websitedgelyza
 
Cybersecurity Workshop #1.pptx
Cybersecurity Workshop #1.pptxCybersecurity Workshop #1.pptx
Cybersecurity Workshop #1.pptxGDSC PJATK
 
RAG Patterns and Vector Search in Generative AI
RAG Patterns and Vector Search in Generative AIRAG Patterns and Vector Search in Generative AI
RAG Patterns and Vector Search in Generative AIUdaiappa Ramachandran
 
UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6DianaGray10
 
Cloud Revolution: Exploring the New Wave of Serverless Spatial Data
Cloud Revolution: Exploring the New Wave of Serverless Spatial DataCloud Revolution: Exploring the New Wave of Serverless Spatial Data
Cloud Revolution: Exploring the New Wave of Serverless Spatial DataSafe Software
 
Videogame localization & technology_ how to enhance the power of translation.pdf
Videogame localization & technology_ how to enhance the power of translation.pdfVideogame localization & technology_ how to enhance the power of translation.pdf
Videogame localization & technology_ how to enhance the power of translation.pdfinfogdgmi
 
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPAAnypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPAshyamraj55
 

Dernier (20)

Linked Data in Production: Moving Beyond Ontologies
Linked Data in Production: Moving Beyond OntologiesLinked Data in Production: Moving Beyond Ontologies
Linked Data in Production: Moving Beyond Ontologies
 
Nanopower In Semiconductor Industry.pdf
Nanopower  In Semiconductor Industry.pdfNanopower  In Semiconductor Industry.pdf
Nanopower In Semiconductor Industry.pdf
 
Do we need a new standard for visualizing the invisible?
Do we need a new standard for visualizing the invisible?Do we need a new standard for visualizing the invisible?
Do we need a new standard for visualizing the invisible?
 
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
 
UiPath Studio Web workshop series - Day 7
UiPath Studio Web workshop series - Day 7UiPath Studio Web workshop series - Day 7
UiPath Studio Web workshop series - Day 7
 
Using IESVE for Loads, Sizing and Heat Pump Modeling to Achieve Decarbonization
Using IESVE for Loads, Sizing and Heat Pump Modeling to Achieve DecarbonizationUsing IESVE for Loads, Sizing and Heat Pump Modeling to Achieve Decarbonization
Using IESVE for Loads, Sizing and Heat Pump Modeling to Achieve Decarbonization
 
GenAI and AI GCC State of AI_Object Automation Inc
GenAI and AI GCC State of AI_Object Automation IncGenAI and AI GCC State of AI_Object Automation Inc
GenAI and AI GCC State of AI_Object Automation Inc
 
Crea il tuo assistente AI con lo Stregatto (open source python framework)
Crea il tuo assistente AI con lo Stregatto (open source python framework)Crea il tuo assistente AI con lo Stregatto (open source python framework)
Crea il tuo assistente AI con lo Stregatto (open source python framework)
 
Connector Corner: Extending LLM automation use cases with UiPath GenAI connec...
Connector Corner: Extending LLM automation use cases with UiPath GenAI connec...Connector Corner: Extending LLM automation use cases with UiPath GenAI connec...
Connector Corner: Extending LLM automation use cases with UiPath GenAI connec...
 
Spring24-Release Overview - Wellingtion User Group-1.pdf
Spring24-Release Overview - Wellingtion User Group-1.pdfSpring24-Release Overview - Wellingtion User Group-1.pdf
Spring24-Release Overview - Wellingtion User Group-1.pdf
 
Designing A Time bound resource download URL
Designing A Time bound resource download URLDesigning A Time bound resource download URL
Designing A Time bound resource download URL
 
OpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability AdventureOpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability Adventure
 
AI Fame Rush Review – Virtual Influencer Creation In Just Minutes
AI Fame Rush Review – Virtual Influencer Creation In Just MinutesAI Fame Rush Review – Virtual Influencer Creation In Just Minutes
AI Fame Rush Review – Virtual Influencer Creation In Just Minutes
 
COMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a WebsiteCOMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a Website
 
Cybersecurity Workshop #1.pptx
Cybersecurity Workshop #1.pptxCybersecurity Workshop #1.pptx
Cybersecurity Workshop #1.pptx
 
RAG Patterns and Vector Search in Generative AI
RAG Patterns and Vector Search in Generative AIRAG Patterns and Vector Search in Generative AI
RAG Patterns and Vector Search in Generative AI
 
UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6
 
Cloud Revolution: Exploring the New Wave of Serverless Spatial Data
Cloud Revolution: Exploring the New Wave of Serverless Spatial DataCloud Revolution: Exploring the New Wave of Serverless Spatial Data
Cloud Revolution: Exploring the New Wave of Serverless Spatial Data
 
Videogame localization & technology_ how to enhance the power of translation.pdf
Videogame localization & technology_ how to enhance the power of translation.pdfVideogame localization & technology_ how to enhance the power of translation.pdf
Videogame localization & technology_ how to enhance the power of translation.pdf
 
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPAAnypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPA
 

Startup Metrics for Pirates (Sept 2012)

  • 1. Startup Metrics 4 Pirates! AARRR! GeeksOnaPlane 2012 Zagreb, Croatia Sept 2012 - #GOAP #AARRR Dave McClure @DaveMcClure http://500.co http://500hats.typepad.com http://slideshare.net/dmc500hats
  • 3. WARNING!!! this deck is guaranteed to offend, provide tragically incorrect advice, and perhaps get you arrested. Fucking Deal with it.
  • 4. Dave McClure Developer, Entrepreneur, Marketer, Investor, GEEK! 00’s & 10’s: •  Investor: Founders Fund, Facebook fbFund, 500 Startups •  Companies: Mint.com, SlideShare, Twilio, WildFire, SendGrid •  Marketing: PayPal, Simply Hired, Mint.com, O’Reilly Media •  Speaker: Lean Startup, Web 2.0, Stanford/Facebook 80’s & 90’s: •  Entrepreneur: Founder/CEO Aslan Computing (acq’d) •  Developer: Windows / SQL DB consultant (Intel, MSFT) •  Engineer: Johns Hopkins‘88, BS Eng / Applied Math
  • 5. 500 Startups Seed Fund & Accelerator (350+ companies, 20+ countries)
  • 7. Topics •  Basic Concepts of “Startup Metrics 4 Pirates” •  3 Steps to AARRR: Product, Market, Revenue •  Constructing MVP: Just ONE Feature? •  Design (UX) & Distribution (MKTG) •  Winning: Market, Revenue, Profit?
  • 8. Key Concepts •  MVP = F(Customer, Problem, Time or $$$) •  PMF = F(Customer, Solution, Alternatives) •  AUX = F(Customer, Design/UX, Metrics) •  ACQ = F(Customer, Campaign, Vol, Cost, Conv) •  WIN! = F(Customer, Usage, Dist, Revenue)
  • 9. Geek Renaissance •  Tech Innovation •  Finance Innovation •  Design Innovation •  Social Innovation •  Global Innovation
  • 11. What’s a Platform? Successful  Pla,orms     have  3  Things:   Features     1)  Features     2)  Users     3)  Money       Growth     Profit     Awesome   Profitable                                                   Users                                                .   .             Growth   Money  
  • 12. Distribution Platforms Customer Reach: 100M+ •  Search: Google (SEO/SEM) •  Social: Facebook, Twitter, Zynga, LinkedIn •  Mobile: Apple (iPhone, iPad), Android •  Media: YouTube (Video), Blogs, Photos •  Comm: Email, Chat, SMS, Voice
  • 13. DO Marketing! (It’s Not Evil) •  Marketing is Both Qualitative + Quantitative •  Qualitative: Create Emotion, Drive Action •  Quantitative: Measure Results of Action •  Design (UX) & Distribution (MKTG) Matter •  Volume (#), Cost ($), Conversion (%)
  • 15. Read Geoffrey Miller Sex + Evolution + Consumer Mktg = Awesome Sauce
  • 16. More Great Shit. Psychology + Comics
  • 17. [The Lean Startup] [Startup Metrics 4 Pirates]
  • 18. Just Gimme the GOOD Metrics. Users, Pages, Clicks, Emails, $$$...? Q: Which of these is best? How do you know? •  1,000,000 one-time, unregistered unique visitors •  500,000 visitors who view 2+ pages / stay 10+ sec the good •  200,000 visitors who clicked on a link or button stuff. •  20,000 registered users w/ email address •  2,000 passionate fans who refer 5+ users / mo. •  1,000 monthly subscribers @ $5/mo
  • 19. The Lean Startup •  Talk to Customers; Discover Problems •  Progress ≠ Features (Less = More) •  Fast, Frequent Iteration (+ Feedback Loop) •  Measure Conversion; Compare 2+ Options •  Focus on Product/Market Fit (don’t “launch” b4) •  Keep it Simple & Actionable
  • 21. Iterate, Dammit. (Eric Ries, StartupLessonsLearned.com) IDEAS LEARN BUILD DATA CODE MEASURE
  • 22. Product/Market Fit b4 “Launch” (Sean Ellis, Startup-Marketing.com) Growth Transition to Growth Product/Market Fit Startup-Marketing.com
  • 23. AARRR!: 5-Step Startup Metrics Model SEO Campaigns, SEM PR Contests Biz Social Networks Dev Blogs Affiliates Apps & Direct, Tel, Widgets Email TV Domains ACQUISITION   Viral   Loops   Emails  &  Alerts   Homepage / Emails & widgets Landing Page Product Affiliates,   Blogs,  RSS,   n News  Feeds   ntio Features Contests   R e te Ads,  Lead  Gen,   Biz Dev System  Events  &   Subscriptions,   Time-­‐based  Features   ECommerce   Website.com
  • 24. Startup Metrics for Pirates •  Acquisition: users come to site from various channels •  Activation: users enjoy 1st visit: "happy” experience •  Retention: users come back, visit site multiple times •  Referral: users like product enough to refer others •  Revenue: users conduct some monetization behavior AARRR! (note: If you’re in a hurry, Google “Startup Metrics” & watch 5m video)
  • 25. One Step at a Time. 1.  Make a Good Product: Activation & Retention 2.  Market the Product: Acquisition & Referral 3.  Make Money: Revenue & Profitability “You probably can’t save your Ass and your Face at the same time… so choose carefully.” – DMC
  • 26. Startup Challenges Startups have problems in 3 key areas: •  Management: Set Priorities, Define Key Metrics •  Product: Build “Right” Features. Measure, Iterate. •  Marketing: Distribution, Distribution, Distribution. (Search, Social, Mobile)
  • 27. Key Concepts •  MVP = F(Customer, Problem, Time or $$$) •  PMF = F(Customer, Solution, Alternatives) •  AUX = F(Customer, Design/UX, Metrics) •  ACQ = F(Customer, Campaign, Vol, Cost, Conv) •  WIN! = F(Customer, Usage, Dist, Revenue)
  • 29. Role: Founder / CEO Q: Which Customers? Problems? Metrics? Why? A: Focus on Critical Few Actionable Metrics (if you don’t use the metric to make a decision, it’s not actionable) •  Hypothesize Customer Lifecycle •  Target ~3-5 Conversion Events (tip: Less = More) •  Test, Measure, Iterate to Improve
  • 30. Optimize 4 Happiness (both User + Business) $$$ •  Define States of User + Business Value •  Prioritize (Estimate) Relative Value of Each State •  Move Users: Lower Value -> Higher Value •  Optimize for User Happiness + Business $$$ •  Achieve High Cust Value + Low ACQ$ @ Scale
  • 31. What is Minimum Viable Product? MVP = F(Customer, Problem, Time or $$$) •  Focus on CUSTOMER –  Qualitative Discovery, Quantitative Validation •  Get to know habits, problems, desires (FUN MATTERS) –  what causes pain? what causes pleasure? •  Define 1-5 TESTABLE Conversion Metrics of Value –  Attention/Usage (session time, clicks) –  Customer Data (email, connect, profile) -  Revenue (direct or indirect) -  Retention (visits over time, cohort behavior) -  Referral (users evangelize to other users) •  Note: Paid Solutions drive FOCUS (& pay rent)
  • 32. Example Conversion Metrics (note: *not* actuals… your mileage may vary) Stage Conversion Status Conv. Est. Value % (*not* cost) Acquisition Visitors -> Site/Widget/Landing Page 60% $.05 (2+ pages, 10+ sec, 1+ clicks = don’t abandon) Activation “Happy” 1st Visit; Usage/Signup 15% $.25 (clicks/time/pages, email/profile reg, feature usage) Retention Users Come Back; Multiple Visits 5% $1 (1-3x visits/mo; email/feed open rate / CTR) Referral Users Refer Others 1% $5 (cust sat >=8; viral K factor > 1; ) Revenue Users Pay / Generate $$$ 2% $50 (first txn, break-even, target profitability)
  • 33. KILL A FEATURE. Something Sucks. Find It. KILL It. •  STOP ADDING FEATURES. •  Find the ONE THING that users LOVE. •  How to figure out? TAKE. SHIT. AWAY. •  When they SCREAM, you’ve FOUND it. •  Then Bring it Back… Only Better. •  Tip: KILL a Feature Every Week.
  • 34. [ Getting 2 PMF ]
  • 35. Role: Product / Eng / Design Q: What Features to Build? Why? When are you “Done”? A: Easy-to-Find, Fun/Useful, Unique Features that Increase Conversion (stop iterating when increase decelerates) •  Wireframes = Conversion Steps •  Measure, A/B Test, Iterate FAST (daily/weekly) •  Optimize for Conversion Improvement –  80% on existing feature optimization –  20% on new feature development
  • 36. What is Product/Market Fit? PMF = F(Customer, Solution, Alternatives*) •  Product / Market Fit occurs when: –  Customers like your stuff better than other options –  Not static, Not optimal – just Local Max 4 F(customers, solution, time) –  make sure you’re moving in optimal direction 2 local max •  Q: what competitive solutions are available? –  … that your customers know about? –  how are you diff/same? –  in ways that people care about? (will pay for) •  KILL a FEATURE regularly (or rotate 1% tests) –  Q: what is MOST $ cust pay 4 LEAST func MVP relative 2 BEST alt? •  NICHE 2 WIN: RE-define cust + DIFFerentiated features
  • 37. Better or Different. Funny! Shocking !!! Accepted Not Funny.
  • 38. [ Testing 4 AUX ]
  • 39. Discover Meaning Why Should Users CARE About Your Product? Kathy Sierra: “Creating Passionate Users”
  • 40. Discover Meaning Keywords, Images, Call-to-Action Top 10 - 100 words Call-to-Action •  Your Brand / Products •  Words •  Customer Needs / Benefits •  Images •  Competitor’s Brand / Products •  Context •  Semantic Equivalents •  Button/Link •  Misspellings •  Emotion Relevant images Result •  People •  Positive? •  Products •  Negative? •  Problems •  Neutral (= Death) •  Solutions •  A/B test & Iterate
  • 41. How 2 Tell if Design/UX is Good? AUX = F(Customer, Design/UX, Metrics) •  Don’t "LAUNCH" Until Your Product Doesn't Suck. –  In fact, Stop Thinking about it as a Launch – it’s Continuous –  Define Metrics, Measurability for Design / UX –  Focus on Psychology of User –  Relative to Competitive Alternatives (that your customers know about) –  Keep Testing 4 Awesomeness! (Q: does it Rock Yet? ) •  RAMP Mktg & $$$ AFTER it’s clear your MVP is: –  Functional = useful for >1 customers –  Differentiated = better than other stuff availabile –  Awesome (see above) •  Minimum Viable Design = Minimum Viable Awesomeness –  what's the crappiest thing u can release & still be awesome?
  • 42. [ Metrics 4 ACQ ]
  • 43. Role: Marketing / Sales Q: What channels? Which users? Why? A: High Volume (#), Low Cost ($), High Conv (%) •  Design & Test Multiple Marketing Channels + Campaigns •  Select & Focus on Best-Performing Channels & Themes •  Optimize for conversion to target CTAs, not just site/landing page •  Match/Drive channel cost to/below revenue potential •  Low-Hanging Fruit: –  Blogs –  SEO/SEM –  Landing Pages –  Automated Emails
  • 44. Example Marketing Channels •  PR •  Email •  Contest •  SEO / SEM •  Biz Dev •  Blogs / Bloggers •  Direct Marketing •  Viral / Referral •  Radio / TV / Print •  Affiliate / CPA •  Dedicated Sales •  Widgets / Apps •  Telemarketing •  LOLCats ;)
  • 45. MAARRRketing Plan ACQ = F(Customer, Campaign, Vol, Cost, Conv) Marketing Plan = Target Customer Acquisition Channels •  3 Important Factors = Volume (#), Cost ($), Conversion (%) •  Measure conversion to target customer actions •  Test audience segments, campaign themes, Call-To-Action (CTAs) [Gradually] Match Channel Costs => Revenue Potential •  Increase Vol. & Conversion, Decrease Cost, Optimize for Revenue Potential •  Avg Txn Value (ATV), Ann Rev Per User (ARPU), Cust Lifetime Value (CLV) •  Design channels that (eventually) cost <20-50% of target ATV, ARPU, CLV Consider Costs, Scarce Resource Tradeoffs •  Actual $ expenses •  Marketing time & resources •  Product/Engineering time & resources •  Cashflow timing of expense vs. revenue, profit
  • 46. [ What is WINNING? ]
  • 47. Choose #WINNING Metrics WIN = F(Customer, Usage, Dist, Revenue) •  after MVP functional use, several options: –  better Usage – Activation & Retention (AUX) –  more Users -- Distribution / Acquisition –  mo' Money --- U Wants 2 Get Paid, Yo. •  understand ACQ$ vs REV$, optimize 4 short-term –  High(er) volume usually a priority –  costs may change as vol increases
  • 48. [ The Lean Investor ]
  • 49. Startup 2.0: “Lean Investor” Model Method: Invest in startups using incremental investment, iterative development. Start with lots of small experiments, filter out failure, and expand investment upon success. •  Incubator: $0-250K (“Product Viability”) •  Seed: $100K-$2M (“Expand Distribution”) •  Venture: $1M-$5M (“Maximize Revenue”)
  • 50. Investment #1: Incubate (“Product”) •  Structure –  1-3 founders –  $25K-$250K investment –  Incubator environment: multiple peers, mentors/advisors •  Build Functional Prototype / “Minimum Viable Product” (MVP): –  Concept->Alpha, ~3-6 months –  Develop Minimal Critical Feature Set => Get to “It Works” –  Instrument Basic Dashboard, Conversion Metrics –  Test Cust. Adoption (10-1000 users) / Cust. Satisfaction (Scale: 1-10) •  Demonstrate Concept, Reduce Product Risk, Test Functional Use •  Develop Metrics & Filter for Follow-on Investment
  • 51. Investment #2: Seed •  Structure (“Market”) –  2-5 person team –  $100K-$2M investment –  Syndicate of Angel Investors / Small VC Funds •  Improve Product, Expand Market, Test Revenue: –  Alpha->Beta, ~6-12 months –  Customer Sat ≥ 6 => Get to “Doesn’t Suck” –  Setup A/B Testing Framework, Optimize Conversion –  Test Marketing Campaigns, Cust Acqstn Channels •  Prove Solution/Benefit, Assess Market Size •  Test Channel Cost, Revenue Opportunity •  Determine Org Structure, Key Hires
  • 52. Investment #3: Venture (“Revenue”) •  Structure –  5-10 person team –  $1M-$5M investment –  VC Investors •  Make Money, Get to Sustainability: –  Beta->Production, 12-18 months –  Customer Sat ≥ 8 => “It Rocks, I’ll Tell My Friends” –  MktgPlan => Predictable Channels / Campaigns + Budget –  Scalability & Infrastructure, Customer Service & Operations –  Connect with Distribution Partners •  Prove/Expand Market, Operationalize Business •  Future Milestones: Profitable/Sustainable, Exit Options
  • 53. NOTE: Don’t Pitch Me, Bro. Seriously: Don’t. Fucking. Pitch Me. (and don’t email me either, cuz i won’t read it)
  • 54. Links & Resources Additional References: •  Influence: The Psychology of Persuasion Robert Cialdini (book) •  The Mating Mind Geoffrey Miller (book) •  Putting the Fun in Functional Amy Jo Kim (etech 2006 preso) •  Futuristic Play Andrew Chen (blog) •  Don’t Make Me Think Steve Krug (book) •  Designing for the Social Web Joshua Porter (book, website) •  Startup Lessons Learned Eric Ries (blog) •  Customer Development Methodology Steve Blank (presentation, blog) •  Startup-Marketing.com Sean Ellis (blog) •  KISSmetrics.com Hiten Shah / Neil Patel (website) •  How To Pitch a VC Dave McClure (slides, NSFW) •  Understanding Comics Scott McCloud (book)
  • 57. Activation SEO Campaigns, SEM PR Contests Biz Social Networks Dev Blogs Affiliates Activation Criteria: Apps & Direct, Tel, Widgets Email TV •  10-30+ seconds Domains •  2-3+ page views •  3-5+ clicks •  1 key feature usage Homepage / Landing Page Product Features do LOTS of landing page & A/B tests – make lots of dumb guesses & iterate FAST Website.com
  • 58. Activation What do users do on their first visit? Example Activation Goals •  Click on something! •  Account sign up / Emails •  Referrals / Tell a friend •  Widgets / Embeds •  Low Bounce Rate Activation Tips •  Less is more •  Focus on user experience / usability •  Provide incentives & call to actions •  Test and iterate continuously
  • 59. Activation What do users do on their first visit? Key Metrics to Track ü Pages per visit ü Time on site ü Conversions
  • 60. Activation Tools Crazy Egg (Visual Click Mapping) http://crazyegg.com Google Website Optimizer (A/B & Multivariate Testing) http://google.com/websiteoptimizer Marketo.com (B2B Lead Generation Management) http://marketo.com Resources Experimentation and Testing: A Primer kaushik.net/avinash/2006/05/experimentation-and-testing-a-primer.html Landing Page Design Toolbox: 100 Tips & Tools http://tinyurl.com/326co6 Landing Page Tutorials & Case Studies http://www.copyblogger.com/landing-pages/ 101 Easy Easy to use Google Website Optimizer http://conversion-rate-experts.com/articles/101-google-website-optimizer-tips/
  • 62. Retention SEO Campaigns, Automated emails: SEM PR Contests Biz Social Networks Dev •  lifecycle emails @ +3, +7, +30d Blogs Affiliates Apps & Direct, Tel, •  status / “best of” weekly/monthly Widgets Email TV •  “something happened” emails Domains BUT: •  make it easy to unsubscribe Emails  &  Alerts   Homepage / Landing Page Blogs,  RSS,   Product News  Feeds   Features Tip on emails: •  > 80% or more on SUBJECT LINE System  Events  &   •  < 20% or less on BODY TEXT Time-­‐based  Features   Website.com
  • 63. Retention How do users come back? How often? Cohort Analysis: •  Distrib of Visits over Time •  Rate of Decay •  Effective Customer Lifecycle Retention Methods ü  Automated Emails * Track open rate / CTR / Quantity ü  RSS / News Feeds * Track % viewed / CTR / Quantity ü  Widgets / Embeds * Track impressions / CTR / Quantity
  • 64. Retention How do users come back? How often? Example Retention Goals •  1 - 3+ visits per month •  20% open rate / 2% CTR •  High deliverability / Low spam rating •  Long customer life cycle / Low decay •  Identify fanatics and cheerleaders Retention Tips •  Email is simple and it works •  BUT make unsubscribe easy •  80% subject line / 20% body text •  ACTUALLY 99% subject line / 1% body text •  Fanatics = virality + affiliate channel (bloggers?)
  • 65. Retention How do users come back? How often? Key Metrics to Track ü  Source ü  Quantity ü  Conversions ü  Visitor Loyalty ü  Session Length
  • 66. Retention Tools Campaign Monitor / MailChimp (email newsletter software) campaignmonitor.com / mailchimp.com TriggerMail (site-centric email management) triggermail.net Litmus (email and website design testing - clients / browsers) litmusapp.com Resources 30 free HTML email templates campaignmonitor.com/resources/templates.aspx Best Practices in Writing Email Subject Lines mailchimp.com/resources/best-practices-in-writing-email-subject-lines.phtml Learning Viral: Viral Emails of Tagged.com okdork.com/2008/04/10/learning-viral-studying-taggedcom/
  • 68. Acquisition SEO Campaigns, SEM PR Contests Biz Social Networks Dev Blogs Affiliates Apps & Direct, Tel, Widgets Email TV Domains Marketing Channels: •  largest-volume (#) •  lowest-cost ($) •  best-performing (%) Website.com
  • 69. Acquisition Where are users coming from? Acquisition Methods ü SEO / SEM ü Blogs ü Email ü Social Media & Social Networks ü Domains
  • 70. Acquisition Keyword Vocabulary Top 10 - 100 words •  Your Brand / Products •  Customer Needs / Benefits •  Competitor’s Brand / Products •  Semantic Equivalents •  Misspellings Things to analyze •  Sources •  Volume •  Cost •  Conversion
  • 71. Acquisition Where are users coming from? Key Metrics to Track Example ü Quantity (#) ü Cost ($) ü Conversions (%)
  • 72. Acquisition Tools Google Analytics (web analytics) google.com/analytics Google Keyword Tool (keyword research tool) adwords.google.com/select/KeywordToolExternal SEO Book Tools (SEO related tools) tools.seobook.com Resources SEO Book Blog seobook.com/blog The Social Media Manual: Read Before You Play searchengineland.com/071120-144401.php Strategies to ruthlessly acquire users andrewchen.typepad.com/andrew_chens_blog/2007/04/10_obvious_stra.html
  • 73. Startup Metrics Referral
  • 74. Referral SEO Campaigns, SEM PR Contests Biz Social Networks Dev Blogs Affiliates Apps & Direct, Tel, Widgets Email TV Viral   Domains Acquisition   Loops   Emails & widgets Emails  &  Alerts   Homepage / Landing Page Affiliates,   Product Contests   Blogs,  RSS,   n News  Feeds   e ntio Features Ret Focus on driving referrals System  Events  &   Time-­‐based  Features   *after* users have a “happy” experience; avg score >= 8 out of 10 Website.com
  • 75. Referral How do users refer others? Referral Methods ü Send to Friend: Email / IM ü Social Media ü Widgets / Embeds ü Affiliates
  • 76. Referral Viral Growth Factor Viral Growth Factor = X * Y * Z X = % of users who invite other people Y = average # of people that they invited Z = % of users who accepted an invitation A viral growth factor > 1 means an exponential organic user acquisition.
  • 77. Referral Tools Gigya (social media distribution & tracking tool) gigya.com ShareThis / AddThis (sharing buttons) sharethis.com / addthis.com GetMyContacts (PHP contacts importing & invitation software) getmycontacts.com Resources Seven Ways to GO VIRAL lsvp.wordpress.com/2007/03/02/seven-ways-to-go-viral/ What’s your viral loop? Understanding the engine of adoption andrewchen.typepad.com/andrew_chens_blog/2007/07/whats-your-vira.html Metrics: Where Users Come From slideshare.net/guest2968b8/rockyou-snap-summit-32508
  • 78. Startup Metrics Revenue
  • 79. Revenue SEO Campaigns, SEM PR Contests Biz Social Networks Dev Blogs Affiliates Apps & Direct, Tel, Widgets Email TV Domains Acquisition   Viral   Loops   Emails  &  Alerts   Homepage / Emails & widgets Landing Page Product Affiliates,   Blogs,  RSS,   n News  Feeds   ntio Features Contests   Rete Ads,  Lead  Gen,   Biz Dev System  Events  &   Subscriptions,   Time-­‐based  Features   ECommerce   This is the part *you* Website.com still have to figure out… (we don’t know jack about your business)
  • 80. Revenue How do you make money? Revenue Tips •  Don’t Rely on AdSense (only) •  Start Free => 2% “Freemium” •  Subscription / Recurring transactions •  Qualify your customers -> Lead generation (arbitrage) •  Sell something! (physical or virtual)
  • 81. Revenue Resources & Tools Revenue Metrics (Andrew Chen) http://tinyurl.com/47r63a How to Create a Profitable “Freemium” Startup (Andrew Chen) http://tinyurl.com/8z9ygk 2008 Affiliate Marketing Review (Scott Jangro) http://tinyurl.com/86wak4