Research & Development, Exploration, Testing, etc.
What did it take for them to build their products?
Client Segments, Multi-Product, Big Marketing, etc.
What did it take for them to build their products?
Build Product First, then Go To Market
● Making Products is expensive and takes time
● Marketing and Sales are expensive and take time
The Startup of 15 Years Ago (Dave McClure)
● Big Costs○ IT: Sun / Oracle○ Marketing: PR, Advertising
● Long Cycles○ 12 - 24 mo for dev, then○ 6 - 18 m for sales
● Small Market○ <100M people online
● Limited # of Investors
The Startup of Today (Dave McClure)
● Smaller Costs (Much Free)○ IT: Amazon, Google, Paypal○ Marketing: Social Media, Blogs○ Data: GA, MP, Heatmaps
● Short Cycles○ 3 - 90 days for dev○ Sales Online
● Large Market○ <3B people online
● More Investors (Angels)
Making Products Today
● “Fit” is determined by
Data / Metrics
● Lower Costs = More
Competition
● Specialization / Niche
Looking at a Random Business
“Museo Torres Garcia”
● How can we define success?
● What can we use to measure that?
● What is their value?● What is the potential
market?
What Every Business Does (very simplified)
1. Get client’s attention
2. Make them a customer
3. Earn repeat business
4. Earn referral business
Enter the Shop
Shop in the Street
Buy Something
Come Back
Tell their friends
Visit your Site
Sign Up
Buy Every Month
Tell their friends
Online Application
Buy
What Every Business Does (very simplified)
1. Get client’s attention
2. Make them a customer
3. Earn repeat business
4. Earn referral business
Acquisition
Activation
Retention
Referral
Marketing
How “Sticky” is Your Product? (Dave McClure - AARRR Metrics)
Acquisition
Activation
Retention
Referral
Visit Your Site
Doesn’t Abandon (i.e. stays 1 minute)
Happy Visit (stays X minutes, sees Y pages)
Takes Action: Sign Up for Blog / Newsletter
Use / Buy Core Product
Premium Services
Tells their Friends
Repeats Use of Core Product
100%
70%
30%
5%
2%
1%
Compare to Users
Focusing on your Value
● Pick a Metric / Stage ○ 75% Accuracy Now > 100% Later
○ Validate by talking with users
● Single Purpose for Team○ Everyone pointed in one direction
○ Do not measure everything
● No Marketing / Growth / Partnerships until you get there
What is your “Magic Moment”?
Cliches, but for a reason
● Understand your users
● Few Loves is better than Many Likes
● Give amazing customer service
● You make what you measure
● Spend very little
● Be focused and avoid distractions
● Deals fall through, don’t give up
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