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Scaling Up: Build For Scale: Strategies, Tips + Tactics For Ridiculously Rapid Growth

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This is Roland Frasier's presentation on Scaling Up from Digital Marketer's Traffic & Conversion Summit 2016. It explains how Ryan Deiss, Perry Belcher, Richard Lindner and Roland Frasier have grown and scaled Digital Marketer, Native Commerce and Idea Incubator businesses at triple digit growth rates over the past several years into industry leaders that they now are.

The presentation explains the growth models and growth hacks that DM and companies have used, the history of their growth and the strategic growth and tactics they are planning to use in the coming years to continue that. growth

Publié dans : Business

Scaling Up: Build For Scale: Strategies, Tips + Tactics For Ridiculously Rapid Growth

  1. 1. Build For Scale Strategies,Tips + Tactics For Ridiculously Rapid Growth #tcs2016 @RolandFrasier Roland Frasier
  2. 2. Idea Incubator Snapshot Q4 2015 • 211 Employees • Add ~13k Customers Per Week • Ship 5k – 8k Packages Per Day • 1 Billion Emails • 10,000 ft2 Warehouse Austin & LA #tcs2016 @RolandFrasier
  3. 3. This is a sample of bold text on a full color slide. This is good for quotes,stats, dividers,etc. Focus On Strategy #tcs2016 @RolandFrasier
  4. 4. We spend a lot of time doing this…
  5. 5. And building these…
  6. 6. This is a sample of bold text on a full color slide. This is good for quotes,stats, dividers,etc. Scaling Valuation #tcs2016 @RolandFrasier
  7. 7. What Business Are You In? Industry Edu. Services Publishing Bus. Services RE Services Multiple 8.5 10.18 12.52 16.13 Industry Entertainment Diversified Finance Serv. Retail Internet Multiple 12.61 19.82 35.29 42.14 $33.64 Million Industry Classification Spread! Total Market = 11.45 Source: valuationacademy.com/industry-specific-multiples
  8. 8. Which business would you rather be in? Industry Multiple EBITDA Valuation Education 8.5 $1 Million $8.5MM Publishing 10.18 $1 Million $10.18MM Business Services 12.52 $1 Million $12.52MM Real Estate Services 16.13 $1 Million $16.13MM Diversified 19.82 $1 Million $19.82MM Financial Services 35.29 $1 Million $35.29MM Retail Internet 42.14 $1 Million $42.14MM
  9. 9. Idea Incubator Circa 2012 Industry Multiple Company EV Per $100k Publishing 10.18 $1,018,000 Bus. Services 12.52 $1,252,000 Total Market 11.45 Weighted Average Multiple Was About 10.5x
  10. 10. Idea Incubator 2015+ Industry Multiple Company EV Per EBITDA RE Services 16.13 $1,613,000 ELearning 13.5 $1,350,000 Finance Serv. 35.29 $3,529,000 Retail Internet 42.14 $4,214,000 Total Market 11.45 Weighted average multiple is now about 28.6x =272% valuation increase from changing the model
  11. 11. Top Quartile Gets A 3x-6x Bump 1. YOY Growth % TL/BL 2. Emp. Depth + Tenure 3. Audited Financials 4. Legal / HR / SOPs 5. EBITDA > $10MM 6. Proven Team 7. Lots of Blue Sky Left 8. Defensible IP 9. Prod/Cust Diversity 10. Risk Profile Source: DenaryCapital
  12. 12. Consider An Online Wiki…
  13. 13. Or Turn Your SOPs Into A Product…
  14. 14. This is a sample of bold text on a full color slide. This is good for quotes,stats, dividers,etc. What’s Your Value Curve? #tcs2016 @RolandFrasier
  15. 15. A Closer LookAt Your Model…
  16. 16. A Closer LookAt Your Model…
  17. 17. This is a sample of bold text on a full color slide. This is good for quotes,stats, dividers,etc. Pre-Initiative Planning #tcs2016 @RolandFrasier
  18. 18. Where do you want to be in 2016? Profit Center Revenue Target Unit Sales Required Needs PC #1 $XXXXXXXXX ########### ???????????? PC #2 $XXXXXXXXX ########### ???????????? PC #3 $XXXXXXXXX ########### ???????????? PC #4 $XXXXXXXXX ########### ???????????? PC #5 $XXXXXXXXX ########### ???????????? $ GOAL Is there anything you should cut that doesn’t move you toward your goal?
  19. 19. How will you get there? What’s the roadmap?
  20. 20. How will you get there? What’s the roadmap?
  21. 21. How will you get there? What’s the roadmap?
  22. 22. How will you get there? What’s the roadmap? Services / Products Existing Extended New Markets/Customers ExistingExtendedNew
  23. 23. How will you get there? What’s the roadmap?
  24. 24. Planning Your Initiatives Initiative Template Initiative Name: Date: Initiative Leader: Strategic Goal: Describe how this initiative will advance the company’s strategic goal(s) / strategic objective(s). Provide a clear statement of the desired outcome(s) of this initiative in “SMART” terms. What does success look like?
  25. 25. Planning Your Initiatives Initiative approach – Provide a high level summary of how you will get this done. Define the roles and accountabilities of key departmental and cross departmental participants. Identify the Key Tasks – Using a Work Breakdown Structure (WBS) – Determine accountability– Estimate the duration of each task. Timeline Summary– Major Milestones Use the IS&R
  26. 26. The Traffic Channel Grid
  27. 27. For Each Profit Center, Do This… Target PC Income? $ Product Price? $ Target PC Income / Product Price = # Sales Needed # of Sales Needed # Conversion Rate? % (# Sales Needed) / CR = # Leads Needed # Leads Needed # Click-through Rate? % # Leads Needed / CTR = # Clicks Needed # Clicks Needed # CPC = $ # Clicks Needed x CPC = Monthly Ad Spend Monthly Ad Spend $
  28. 28. For Each Profit Center, Do This… Target PC Income? $100,000 Product Price? $50 Target PC Income / Product Price = # Sales Needed # of Sales Needed # 2,000 Conversion Rate? % 25% (# Sales Needed) / CR = # Leads Needed # Leads Needed # 8,000 Click-through Rate? % 2% # Leads Needed / CTR = # Clicks Needed # Clicks Needed #400,000 CPC = $0.20 # Clicks Needed x CPC = Monthly Ad Spend Monthly Ad Spend $80,000
  29. 29. Creating the Perfect Marketing Calendar
  30. 30. Promo Planner
  31. 31. Promo Planner
  32. 32. Iterate Through Split-Testing: Track + Improve
  33. 33. Iterate Through Split-Testing: Track + Improve
  34. 34. Evolve Business Models: Bigger Picture… • Are you currently in the right industry? • Should you change your model to bump valuation? • Are you maximizing the 10 valuation increasing factors? • What are the major profit centers and PC targets for your business? • What should your ad budget be to hit your revenue goals? #tcs2016 @RolandFrasier
  35. 35. This is a sample of bold text on a full color slide. This is good for quotes,stats, dividers,etc. Set Strategic + Tactical Initiatives #tcs2016 @RolandFrasier
  36. 36. This is a sample of bold text on a full color slide. This is good for quotes,stats, dividers,etc. Strategic + Tactical Initiatives #tcs2016 @RolandFrasier
  37. 37. Micro to Macro Brand Elevation Deconstructed Growth Affinity and Seasonality Domain Strategies O2O Continuity 2.0 Leverage Content Strategic Partners Embrace Trends Strategic Initiatives for 2016
  38. 38. Native Commerce Growth 2012-2018 2013: 257% 2016: 112% 2014: 127% 2017: 124% 2015: 109% 2018: 105%
  39. 39. This is a sample of bold text on a full color slide. This is good for quotes,stats, dividers,etc. Micro To Macro #tcs2016 @RolandFrasier
  40. 40. Evolve Business Models: Micro to Macro 2012-2013 Survival Life 3MM Preppers Base 2014 Survival Life 40MM Campers 13x Increase 2015 Native Commerce 141MM Outdoor Sports 47x Increase
  41. 41. Evolve Business Models: Micro to Macro 2014 REWW 7MM Active REIs Base 2015 REWW 37MM RE Industry 5x Increase 2016+ VOXIENT 165MM Investors 24x Increase
  42. 42. What’s your broad market offer? Target Sale Broad Market Broad Market Offer RE Data Sub. Investor “Connection Economy” DM Lab Sub. Bloggers “212 Blog Post Ideas” PD Course Women “Inspirational Jewelry” Beauty Assoc. Women “Make Up Brushes” Gun Assoc. Gun Owners “iPac T-Shirt”
  43. 43. Broad Market Offers: T-Shirts  ASSOC  OTO2 iPac Shirt  AGA + HR15  Tacpen Created on Oct 23, 2015
  44. 44. Broad Market Offers: Free T-Shirt
  45. 45. Broad Market Offers: Want More Than One?
  46. 46. Broad Market Offers: Association + Premium
  47. 47. Broad Market Offers: OTO2
  48. 48. Broad Market Offers: OTO2
  49. 49. Broad Market Offers: ThankYou
  50. 50. Broad Market Offers: Inspirational Jewelry  Self-Help
  51. 51. • How big is your current market? • Where are the growth opportunities? • How can you expand to increase market size? • What is your broad market offer? Evolve Business Models: Micro to Macro
  52. 52. This is a sample of bold text on a full color slide. This is good for quotes,stats, dividers,etc. Brand Elevation #tcs2016 @RolandFrasier
  53. 53. This is a sample of bold text on a full color slide. This is good for quotes,stats, dividers,etc. Build your brand, Not yourself. #tcs2016 @RolandFrasier
  54. 54. Evolve Business Models: Guru to Brand
  55. 55. This is a sample of bold text on a full color slide. This is good for quotes,stats, dividers,etc. Fire the gurus, Hire the celebs. #tcs2016 @RolandFrasier
  56. 56. Fire the gurus + Hire the celebs • Spy Escape Case Study • Product + Spokesperson Model • Staff As Spokespeople • Celebrity Brokers + IMDB
  57. 57. Fire the gurus + Hire the celebs
  58. 58. This is a sample of bold text on a full color slide. This is good for quotes,stats, dividers,etc. Evolve your business models from generic to brands #tcs2016 @RolandFrasier
  59. 59. Evolve business models: Brand Elevation • How can you move from guru brand to brand • How can you move from generic products to branded products? • How can you use celebrities as product spokespeople instead of you or a guru? • How can you use your existing staff as product spokespeople?
  60. 60. This is a sample of bold text on a full color slide. This is good for quotes,stats, dividers,etc. De-Constructed Growth #tcs2016 @RolandFrasier
  61. 61. 2012 – 2013 2014 2015 2016 2017 SurvivalLife Add Affinity Sites Native Commerce Wholesale Distributors International Brands 1 Site Multiple Sites Unified Model Vertical Integration IP Integration 1 Market Multiple Markets Holding Company Leveraged Distribution Leveraged Licensing Evolve business models: Deconstructed Growth
  62. 62. Evolve business models: Layering for Multiple Exits Holding Company Major Operating Units Individual Media Properties
  63. 63. Evolve business models: Layering for Multiple Exits 1 Exit 4 Exits 100+ Exits
  64. 64. Evolve business models: Deconstructed Growth • Can your business support your ultimate growth and revenue goals? • Are there opportunities to segments for exit or cash cow hold? • Can you segment off trend based businesses to exit and retain long term businesses? • Can you divide based on function? Example: Ops  Supply  IP
  65. 65. This is a sample of bold text on a full color slide. This is good for quotes,stats, dividers,etc. Affinity + Seasonality #tcs2016 @RolandFrasier
  66. 66. Evolve business models: Affinity + Seasonality • Sell your customers other things they already buy • Make seasonal offerings • Send existing customers to your new media properties • Obama’s out champagne • Bourbon Street Pecans
  67. 67. AffinityTraffic Growth Tabs provide a traffic path to related sites + pass domain authority
  68. 68. AffinityTraffic: SimilarWeb.com
  69. 69. AffinityTraffic: SimilarWeb.com
  70. 70. AffinityTraffic: SimilarWeb.com
  71. 71. AffinityTraffic: SimilarWeb.com
  72. 72. AffinityTraffic: TowerData.com + FacebookAudience Insights
  73. 73. Evolve Business Models: AffinityTraffic Growth • What sites do your customers visit before and after they visit your site? (SimilarWeb.com) • How can you send traffic from your site to support your other sites? • What are your visitors’/customers’ demographics? (TowerData.com + Facebook Insights) • What niches should you expand into next?
  74. 74. This is a sample of bold text on a full color slide. This is good for quotes,stats, dividers,etc. Domain Strategies #tcs2016 @RolandFrasier
  75. 75. Evolve Business Models: EMD  PMD  BDN Diapers.com WebHosting.com CloudComputing.com RentalCar.com History.com Loans.com BoneLoss.com OfficeSupplies.com Plumber.com Clothes.com
  76. 76. • EMDs and PMDs rank 11%> than branded domains • BDNs need 35k> links to rank Page 1 • BDNs need 69%> DA + 22%> PA to rank Page 1 • EMDs reach #1 with half the content • Beep vs CarLoans = 67%> in sales +35%< in PPC Ad Cost Evolve Business Models: EMD  PMD  BDN
  77. 77. Evolve Business Models: BassProShops.com Hunting.com Ducks.com Archery.com Tackle.com
  78. 78. Evolve Business Models: EMD  PMD  BDN 4x CTR + Lower CPC: EMD vs BDN
  79. 79. Evolve Business Models: BassProShops.com StudentLoan.com Mortgage.com Finance.com
  80. 80. Evolve Business Models: BassProShops.com Contacts.com EyeCare.com Glasses.com ContactLenses.com
  81. 81. Evolve Business Models: EMD  PMD  BDN EMD “ElectricBicycles”= 45% Higher CTR than PMD “YourBikes” 105% Higher CTR than BDN “InAHurry” Source: http://www.memorabledomains.co.uk/ppc-generic-domains.html
  82. 82. Evolve Business Models: EMD  PMD  BDN Almost any domain can be bought for $100k e.g. “Sewing.com” You can pay in installments You can lease / option domains e.g. $40/month + $18k in 18 months
  83. 83. • For services offered across multiple markets, BDNs are best • For highly focused markets, EMD or PMD is best • Faster SEO boosts EMD or PMD is best • Highly focused market + SEO boost use EMD • Extensive PPC in focused markets use EMD to increase CTR and lower Ad Spend Evolve Business Models: EMD  PMD  BDN
  84. 84. Evolve Business Models: EMD  PMD  BDN
  85. 85. This is a sample of bold text on a full color slide. This is good for quotes,stats, dividers,etc. What’s the traffic worth? #tcs2016 @RolandFrasier
  86. 86. What’s the traffic worth?
  87. 87. What’s the traffic worth?
  88. 88. What’s the traffic worth?
  89. 89. This is a sample of bold text on a full color slide. This is good for quotes,stats, dividers,etc. $26,104,441.10 Per Month #tcs2016 @RolandFrasier
  90. 90. • What’s your current domain strategy? • Have you analyzed traffic and keywords to determine if you could get a boost in traffic with EMDs? • Could you aggregate EMDs under a unifying BDN to maximize enterprise value? Evolve Business Models: EMD  PMD  BDN We built ~$3MM in value doing this.
  91. 91. This is a sample of bold text on a full color slide. This is good for quotes,stats, dividers,etc. O2O #tcs2016 @RolandFrasier
  92. 92. Online to Offline
  93. 93. This is a sample of bold text on a full color slide. This is good for quotes,stats, dividers,etc. 93% of Retail Is In Physical Stores Only ~7% of Retail Sales Occur Online #tcs2016 @RolandFrasier
  94. 94. Evolve Business Models: Online to Offline -Digital 2012 - 2013 Offer Driven Model (Broken) 2014 - 2015 Certified Partner Beta / Certifications 2016+ CPs Can Deliver + Make Money General Assembly / Edu Model
  95. 95. • What offline play(s) can you make with your existing business? • Who has an offline business that most closely resembles your online business? • What additional offer or changes can you make to create offline opportunity? Evolve Business Models: O2O
  96. 96. This is a sample of bold text on a full color slide. This is good for quotes,stats, dividers,etc. Continuity 2.0 #tcs2016 @RolandFrasier
  97. 97. Evolve Business Models: Continuity 2.0 Continuity $XX/month Content Sub. Continuity 2.0 B2B = Certification + CE B2B = Content License B2C = Association B2C = Buyer’s Club
  98. 98. Evolve Business Models: Continuity 2.0 2012-2013 Info Sub. Info Sub. 2014 Community Community 2015 Certification Association 2016+ Cert + CE + Offline Classes Buyer’s Club
  99. 99. Evolve Business Models: Preventing Churn How can you change your continuity program to reduce voluntary churn? Involuntary Churn: When the relationship ends, but neither party wants it to. We will talk about this in a minute.
  100. 100. 90 Day On-Boarding Plan Day 1-5: Consumption + Little Victory (WalkMe.com / DMEngage) Day 7-14: Show of Commitment (stickers / transformations) Day 21: Join me in congratulating Day 31: Unexpected Gift Day 40: Join me in congratulating Day 45-60: Positive ROI Day 75: Unexpected Gift
  101. 101. This is a sample of bold text on a full color slide. This is good for quotes,stats, dividers,etc. Show them how to consume it #tcs2016 @RolandFrasier
  102. 102. 90 Day On-Boarding Plan
  103. 103. 90 Day On-Boarding Plan
  104. 104. This is a sample of bold text on a full color slide. This is good for quotes,stats, dividers,etc. Leverage Content #tcs2016 @RolandFrasier
  105. 105. Leverage Content: In-House Content Native Commerce Studios Digital Marketer Studios Florida Curated Content Team Philippines Design Team
  106. 106. Leverage Content: Scripted.com & Contently.com 33% Increase in KW rankings * 72% Increase in web traffic * 200% Increase in Lead Magnet DLs *$300 - $500 Per Article * Source: Scripted.com & Contently.com Case Studies
  107. 107. Leverage Content: ContentOro.com $6k - $10k Per Book Per Year Text + Images Kickstart Then Replace
  108. 108. Leverage Content: Hire Your Own Editorial Team Position Compensation # Needed Editor In Chief $120,000 1 Property Editor $70,000 1 Per Site Section Chief $35,000 Many Expect five 1,000 word articles per day “Super Employees” = US + PI
  109. 109. Leverage Content: Books,Periodicals,& Comics
  110. 110. Leverage Content: Branded Columns
  111. 111. Leverage Content: News + Audio/Video + PD Embed Content • Youtube.com • Vimeo.com • Slideshare.com • Twitter.com • Pinterest.com • Instagram.com • Flickr.com • Vine.com • Embed.ly
  112. 112. Leverage Content: Action Plan • Create a content calendar and determine who will create your original content (in-house vs. outsourced) • What content can you license that will elevate your brand? • What public domain and curatable content can you use?
  113. 113. This is a sample of bold text on a full color slide. This is good for quotes,stats, dividers,etc. Strategic Partners #tcs2016 @RolandFrasier
  114. 114. Leverage Content: Strategic Partnerships Reduce Inventory Costs Tap Customer Base Access Sales Rep Networks Leverage Celebrity Add Brand Affinity Credibility
  115. 115. Enhance Revenue: Equity Deals Ozark Mountain Foods Supplier Lockup + Inventory Play Ventury Capital EBITDAArbitrage Play Positive You! Affinity Market Play NewCo Physical Markets Play
  116. 116. Strategic Partnerships • Which Strategic Partners Will You Pursue? • Who Has Manufacturing, Sales, Marketing, Distribution & Customers You Want? • What’s the fit?
  117. 117. Enhance Revenue: List Rentals ~20% of total revenue Identify Affinity Markets Get paid to test new offers
  118. 118. Enhance Revenue: List Rentals ~$150,000 per month $0.10 per subscriber Get paid to test offers
  119. 119. Enhance Revenue: List Rentals
  120. 120. This is a sample of bold text on a full color slide. This is good for quotes,stats, dividers,etc. Embrace Trends #tcs2016 @RolandFrasier
  121. 121. 2016 Trends + Action Plan
  122. 122. Embrace Market Trends: Structured Data Language Schema.org
  123. 123. Embrace Market Trends: App Indexing
  124. 124. This is a sample of bold text on a full color slide. This is good for quotes,stats, dividers,etc. How Will You Address the Uptick In Involuntary Churn? 40% of subs will fail when rebilled this year due to EMV chips and reissuance. #tcs2016 @RolandFrasier
  125. 125. This is a sample of bold text on a full color slide. This is good for quotes,stats, dividers,etc. “Our over-forecast in the US for Q3 was due to slightly higher-than-expected involuntary churn,which we believe was driven in part by the ongoing transition to chip-based credit and debit cards.”–Reed Hastings, Founder & CEO
  126. 126. Embrace Market Trends: EMV Migration 1.5B Cards Replaced 2015-2016 Gross Approvals Down 17% Invalid Acct Declines Doubled Up to 39% Non-Reloadable
  127. 127. Recurring Transaction Indicator The recurring indicator (all card types) increases approvals of stale expiration dates; CVV not expected; higher overall approval rates.
  128. 128. Account Updater Visa/MasterCard (~80% cards on file) Only pay for updates received Discover account updater Run your full file monthly Run 10 days before renewal date Run updater between every retry
  129. 129. Amex Card Refresher Updates from AMEX – AMEX sends continuous updates when available 6 month lookback (annual renewal?)
  130. 130. Banks are requiring exact expiration date match Account updater will supply 60%-80% Increment expiration years for the rest Increment Exp.Dates
  131. 131. Have a Recycle Plan: Don’t Just Do 3 Immediate Retries Retry #1: 3.5% (After Update #1) Retry #2: 2.5% (+5 days) Retry #3: 1.2% (+5 days) Retry #4: 6.2% (After Update + 1st/15th) Retry #5: 4% (+5 days) Retry #6: 6% (After Update + 1st/15th)
  132. 132. Use Enhanced Auth.Data Pre-paid Indicator: Reloadable vs. Non Message to customer for alternate card Debit/Credit Indicator: If debit, retry logic expanded to include retries on 15th and 30th
  133. 133. Customer Contact Incorporate a multi-channel customer contact strategy to complement the behind- the-scenes strategy. Remind customers to update their payment information (website alerts and emails)
  134. 134. Embrace Market Trends: Ad Blocking
  135. 135. Ad Blocking Strategies: Focus On“Un-blockable”In-App Ads?
  136. 136. Ad Blocking Strategies: Sleep With The Enemy?
  137. 137. Ad Blocking Strategies: Ad Blocking Action Plan • Shift from display to native ads • Shift from mobile browser to mobile in-app ads • Shift from ad-supported to native commerce models • Incorporate large platform sites like Instant Articles,Apple News + Pulse
  138. 138. Target the Ever Growing Hispanic-American Market June 2015 June 2014
  139. 139. Embrace Market Trends: Hispanic-Americans • There are 55.4M Hispanic- Americans in the US today (17% of the US population) • By 2060 there will be 128.8 million (31% of the US population) • Get familiar with “acculturation” Source: PewHispanic.org
  140. 140. Embrace Market Trends: Acculturation Source: Hispanic-Marketing.com
  141. 141. Embrace Market Trends: Emerging Markets Do you really want to ignore ~40% of CA & TX or 22% of FL? Source: US Census Bureau
  142. 142. Embrace Market Trends: Emerging Markets Hispanic-Americans generally prefer to use English online So you don’t need to translate your sites Source: ThinkWithGoogle.com
  143. 143. Target Spanish Keywords Spanish language question word searches have doubled Source: ThinkWithGoogle.com
  144. 144. Target Spanish Browsers Source: Neilsen: Google Adwords Case Study
  145. 145. Use Transposh Plugin for Wordpress: 47% Increase in Traffic Source: quicksprout.com/2015/02/23/how-i-increased-my-search-traffic-by-47-from-translating-my-blog-into-82-languages
  146. 146. Embrace Market Trends: HA Markets Action Plan • Target Your Keywords In Spanish & English • Target Spanish + English Browsers • Feature Hispanic Culture Contextually In Your Marketing (Food, Future, Faith, Holidays, Family & Traditions) • Use TransPosh to capture auto-index hundreds of pages in Google + reach 91 additional language speakers
  147. 147. This is a sample of bold text on a full color slide. This is good for quotes,stats, dividers,etc. Thank you! #tcs2016 @RolandFrasier

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