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I break the answer to that question down into three engines: Viral - this is the business model identified in the presentation as "Get Users." Here, the key metrics are Acquisition and Referral, combined into the now-famous viral coefficient. If the coefficient is > 1.0 , you generally have a viral hit on your hands.
Every business takes time to scale and penetrate a market due to organizational growth, hiring, training, brand building and customer adoption. Entrepreneurs who under-estimate cash requirements or focus on productdevelopment while someone else pays the bills are doomed to fail over and over again. Hire slow and fire fast.
Today, brands are hiring social media specialists for customer support, crowdsourced productdevelopment, promotions and even leads generation. Hiring The Right Candidate. After all, virality often tends to be based on ideas that are new to the public.
Therefore, if you want to bring an MVP ( Minimum Viable Product ) to market, Werdelin approximates that you’ll need $50,000 to $250,000 , depending on the skill sets of the developers and designers you hire. Werdelin equates building a successful product to building a nightclub. 8) Angry Birds. million plus overhead.
In a previous post , I covered the three main drivers of growth: Paid, Sticky, and Viral. A minimum viable product in this category must answer the question: does my media content or channel command the attention of a valuable audience? Let’s look at a viral growth company, like Facebook. As soon as possible!&#
If its part of a viral loop, its probably trying to get them to invite more friends (on average). This gets me into trouble, because it conjures up for some the idea that productdevelopment is simply a rote mechanical exercise of linear optimization. Thoughts on scientific productdevelopment Lo, my 5 subscribers, who are you?
This term refers to an initial venture-capital investment, often wrongly sought to seed early productdevelopment. In fact, most often, it is limited to seeding a startup business rollout or scale-up after development is completed from friends and family. Frothy is good for entrepreneurs. Seed-round investment.
Their product definition fluctuates wildly – one month, it’s a dessert topping, the next it’s a floor wax. Their productdevelopment team is hard at work on a next-generation product platform, which is designed to offer a new suite of products – but this effort is months behind schedule.
The evolution of the growth function changed this dynamic, mashing together product dev and marketing as integrated functions. About five years ago, we saw the early waves of growth – typically an individual or two (“growth hackers”) who were championing growth within productdevelopment. New platforms as distribution tools.
I too would be concerned about false negatives, but perhaps this strategy could be integrated into a broader market research strategy that included user engagement, viral marketing, etc which would all be quantifiable under the Google analytics. A very interesting strategy. Im defiantly going to give it a shot on my next project!
vs. sustainable: Compare this to the renewable strategies, like viral marketing, SEO, widgets, and ads, which can scale into 10s of millions of users but are primarily centered around tough, non-user centric work. Thoughts on scientific productdevelopment Lo, my 5 subscribers, who are you?
And we cant hire new engineers any faster, because you cant be interviewing and debugging and fixing all at the same time! Even with the highest standards imaginable, theres no way to hire just genius hackers. Hire a CTO or VP Engineering. Worst of all, your teammates are constantly wanting to have meetings. Just change it.
In fact, the curse of productdevelopment is that sometimes small things make a huge difference and sometimes huge things make no difference. When we’re optimizing, productdevelopment teams encounter similar situations. I mean, here we are, paying them to be there, and they won’t use the product!
On Facebook, viral distribution has proved decisive. Those companies who have learned to build apps that optimize the viral loop dominate in every category where they compete. So far, I dont see any apps that have much in the way of viral distribution. We're leading the charge in enabling viral distribution for iPhone apps.
It has been awesome, flattering, and humbling to see that post went viral and has been seen by so many thousands of people — mainly aspiring entrepreneurs — and has been translated into many languages. The most important hiring criteria for your executives is cultural fit. As CEO, you are responsible for every hire.
Lessons Learned by Eric Ries Tuesday, December 16, 2008 Engagement loops: beyond viral Theres a great and growing corpus of writing about viral loops, the step-by-step optimizations you can use to encourage maximum growth of online products by having customers invite each other to join.
Amazon has hired more people for their Alexa division than Google has for the entire company – it’s not hunch, this is going to be the focus. Hire & fire – tools to do a job. Virality: # of users that refer your product for you: exponential growth if your K factor is greater than 1. Identify your channels.
Call it whatever you like, but when businesses are hiring for any of those titles they simply want somebody who can generate lots of quality leads for as little cash as possible.”. The Growth Manager usually reports either to the CEO, the vice president of Product Management, or the vice president of Marketing. How do you scale it?
Why vanity metrics are dangerous ► November (1) ► October (7) ► September (9) ► August (8) ► July (8) ► June (7) ► May (8) ► April (5) ► March (11) ► February (10) ► January (10) ▼ 2008 (59) ▼ December (6) Assessing fit with the Wisdom of Crowds Engagement loops: beyond viral (..)
This is a common problem that results from viral-loop optimization. By copying the exact same registration flow as every other successful viral app, many viral apps completely lose their positioning. Heres why I dont think engagement loops are that helpful: unlike viral loops, its not bad if its not self-sustaining.
For example, my company decided early on to hire a UI designer, which has helped tremendously with our productdevelopment. Then we allocated the saved money into hiring the highest quality developers available — especially those who have experience working with a distributed team.
Others do far too little, assuming the viral effect and word-of-mouth will soon kick in, and sales will suddenly grow exponentially. Some startups hire more people to delay automation, or spend money wildly on new tools for the future. Introduce new products and enhancements every month. Don’t give up your dream too early.
Others do far too little, assuming the viral effect and word-of-mouth will soon kick in, and sales will suddenly grow exponentially. Some startups hire more people to delay automation, or spend money wildly on new tools for the future. Introduce new products and enhancements every month. Don’t give up your dream too early.
Lessons Learned by Eric Ries Tuesday, December 30, 2008 Assessing fit with the Wisdom of Crowds When I wrote earlier about how to conduct a good technical interview , I had only a few things to say about how to assess if the candidate fits in with the team, including this: This responsibility falls squarely to the hiring manager.
When deciding on the purchase of an expensive domain, startup teams should first consider whether the money might be better spent on other areas such as productdevelopment, customer acquisition, or hiring new talent. . Thanks to Matt Joyce and Saumil Jariwala for research help on this blog post.
For starters, theres whole volumes that need to be written about how to actually find and hire the people your startup needs. But most startups succeed in hiring, one way or another, and are still left with the problems of organizing the people that rapid growth brings in.
If the product needs to be tweaked just a little bit in order to convert users into customers, you want to figure that out before the launch. If the viral coefficient is 0.9, And if your product doesnt retain customers, whats the point of driving a bunch of them to use it? Pay attention to your fundamental driver of growth.
Either way, you would have been better off focusing your split-test on high level metrics that measure how much customers like your product as a whole. Thoughts on scientific productdevelopment Lo, my 5 subscribers, who are you?
Thanks to Fletcher Wimbush, The Hire Talent ! #2- I appreciate the thought and care that went into The Farmstand, a productdeveloped by Zooey Deschanel and Jacob Pechenik that enables buyers to garden fresh vegetables without pesticides and less water than conventional gardening. 2- Dropbox. Photo Credit: Jared Stern.
Money to be used for hiring and additional productdevelopment. A social analytics platform for Facebook app developers and publishers that provides detailed demographic and engagement data. Offers virality optimization tools and A/B testing inside Facebook. Competitors: Gowalla. Total Raised: $21.4mm. Kontagent.
If you don’t yet have a team yet, list the roles you need to hire for. If you don’t yet have a team yet, list the roles you need to hire for. Another great way to test your idea is to create a minimum viable product, or MVP. This is the simplest version of your product minus the frills and frosting. The business model.
If you're working on the Sticky Engine of Growth , you're focused on very different metrics from those that you care about in the Viral Engine of Growth. Similarly, a two-sided marketplace cares about different things from a traditional e-commerce product. Ben says, “People don’t do subscriptions for haircuts, hamburgers and hiring.
” April, 2012 – Andrew Chen writes Growth Hacker is the new VP Marketing , which goes viral (2.4K September, 2012 – Andrew Chen, who currently does growth at Uber , writes You don’t need a growth hacker , which encourages companies to really consider whether they have product-market fit before hiring a growth hacker.
Selling a product is a tough process, full of “no’s,” whether they come on the phone with a prospect or as a low conversion rate on your landing page. This is what our hiring landscape looked like over the past year: Pre-2015, we hired three founders: 1x hustler in charge of strategic growth hacking.
Others do far too little, assuming the viral effect and word-of-mouth will soon kick in, and sales will suddenly grow exponentially. Some startups hire more people to delay automation, or spend money wildly on new tools for the future. Introduce new products and enhancements every month. Don’t give up your dream too early.
At a high level, anything that drives virality should be free. To take your specific example about virality - why do we want to have more users sign up? Is it that they act as free advertising for our premium product? January 28, 2009 1:54 AM startupcfo said. Thanks for adding to the discussion on freemium these days.
Identifying new productdevelopment opportunities you might have otherwise overlooked. It’s why Chubbies includes their belief statements on their site: And why Holstee ’s corporate manifesto went viral: Actually, it’s why most things go viral within certain segments: "I don't use a mouse in Excel."
Is the company growing because of an amazing viral loop paired with a strong engagement loop? Most of the article is about the features – new and old – of the product. Is the company growing because of an amazing viral loop paired with a strong engagement loop? It’s possible, but the article doesn’t say.
If you ask an expert in Facebook apps to come help build yours, youll usually hear the same advice: build your app for virality. Thats sensible advice; most people who have made a business on Facebook rely on the viral driver of growth. If you have a virally-growing app, you dont need the extra installs.
There has never been a viral outbreak of such magnitude before. A solopreneur is essentially an entrepreneur who does not hire any staff. It is an agile principle, with an iterative method that gets a product or service to market without spending months or years in productdevelopment without consumer approval or disapproval.
On the web, we have many of these channels: SEM, SEO, world of mouth, PR and viral. If your app has strong word-of-mouth or viral components, your retention drives new acquisition, and its not so important to have good placement in the store. Acqusition competition is how new apps get new customers.
Practically speaking, the burning need was to begin hiring employees so that I could spend more of my day on productdevelopment, partnerships and driving sales. RL: At a high level, technology has created many ways to increase our productivity while also providing freedom to run the business from anywhere in the world.
(This is similar to the problem that viral loop companies have with the engagement loop : by making it too easy to join, they actually give away the positioning that allows for longer-term engagement.) Why was a team this smart, this disciplined, and this committed to waste-free productdevelopment creating so much waste?
Sure, it garners the "winning " reply above, but in reality I find the answers below by Cody Riddar that directs the asker to go hire an inexpensive prototype development team much more helpful than the "leading answer" that gives the "Quora rockstar engineer" point of view. In my opinion, yes.
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