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Zero to a Million Users @drewhouston, @asmith @drewhouston - PowerPoint PPT Presentation

Zero to a Million Users @drewhouston, @asmith @drewhouston (dropbox) @asmith (xobni) Summer 2006: Humble beginnings Xobni, Dropbox 2 ,000,000 VC-backed startups in SF Both reached 2 million users in 2 0 years Biggest risk:


  1. Zero to a Million Users @drewhouston, @asmith

  2. @drewhouston (dropbox) @asmith (xobni)

  3. Summer 2006: Humble beginnings

  4. • Xobni, Dropbox – 2 ,000,000 VC-backed startups in SF • Both reached 2 million users in 2 0 years

  5. Biggest risk: making something nobody wants

  6. Weak product-market fit cannot be fixed by good marketing Good marketing will not fix a bad product

  7. But good product will be wind at your back

  8. Xobni Analytics: Solved problem no one had

  9. Goal: product-market fit ASAP

  10. learn early, learn often

  11. Cost of change at each stage Idea Prototype Launch

  12. Learning on a $0 budget: Talk to people!

  13. Learn without launching AdWords tests Hacks: Fake landing pages, screenshots, etc.

  14. Dropbox’s minimum viable product: 3 min screencast on Hacker News (Apr 07)

  15. Simple landing page: capture interest/ email address

  16. starting from zero

  17. Go where your early adopters hang out

  18. Private beta launch video  12,000 diggs; beta waiting list jumps from 5,000 to 75,000 in one day (Mar 2008)

  19. Avoid ghost towns: bootstrapping to critical mass

  20. Niche first, world later

  21. Fake it till you make it: Aardvark & simulating features that weren’t ready

  22. marketing: building buzz

  23. Tie yourself to a bigger trend

  24. Adam Meet journalists in person. All the time.

  25. Journalists are really busy – come up with the angle for them.

  26. Media resources page on web site

  27. Word of mouth rule #1: have a great product

  28. Generate word of mouth with scarcity

  29. Help users generate tell their friends

  30. Invite screen • Facebook pictures • Auto-ranked • Outlook detection via looking at mail headers = FUN!

  31. Sex it up! Have fun!

  32. Inbound marketing / “social media”

  33. how do you get people to use your product?

  34. Focus: do a few things really well instead of a lot of things poorly

  35. Every 10% easier  50% larger audience

  36. Don’t make me think: No decisions  nothing to screw up

  37. Don’t make me read, either: Designing landing pages & signup flows early beta • concise beats comprehensive • call out the next step • simple converts better late beta

  38. Hook the user first, educate over time (tours, tip emails, etc.)

  39. You do not see the same product your users do! (craigslist, usertesting.com)

  40. Make feedback painless – then iterate!

  41. how do you make a product that spreads itself?

  42. The best products turn users into evangelists

  43. Encouraging word-of-mouth: Referral program increased signups by 60%

  44. Tricks of the trade: FB & Twitter feed, emails, contact list importers Trailing 30 days: 3 million invites sent

  45. metrics: know thy funnel

  46. Users $$$ Basic funnel

  47. Startup Metrics for Pirates. Live it.

  48. Output I: know where to invest marketing $$

  49. Xobni finding: AdWords users don’t convert to paid BUT they refer others who do!

  50. Output II: allocate engineering resources between usability, engagement, & virality

  51. Example: user education around people search

  52. scaling without virality: “dollar in, dollar out” marketing

  53. Some markets don’t elicit virality or buzz

  54. Netflix example (numbers not exact) ($16 rev - $10 svc $40 advertising, $92 lifetime gross cost) per month  $6/ affiliates, etc. margin/user mo x 22 mo lifetime = $132

  55. a quick taste…

  56. example user acquisition costs satellite tv $700 cellular $400 cellular (prepaid) $100 web hosting (shared) $150 netflix $40 facebook apps less than $1

  57. example monthly rev per user satellite tv $70 cellular $60 web hosting (shared) $5 netflix $16 facebook apps less than $1

  58. example monthly churns satellite tv 1.5% cellular 2% web hosting (shared) 2% netflix 4.4% facebook apps more than 50%?

  59. example freemium conv. rates efax 8% ning 3% dell pre-load AOL less than 1%

  60. Thank you! Questions? Feel free to reach out! @drewhouston - drew@dropbox.com @asmith - adam.smith@xobni.com

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