[7 ways to acquire your first 1,000 users - pt.1]
Last time I wrote about a common early stage startup’s acquisition dilemma - “optimizing an acquisition channel v.s finding a new acquisition channel.” This time I'm going to dive into different ways of finding new acquisition channels.
Having one method work for your startup doesn’t mean you should disqualify the others, but it also doesn’t mean that every method will work for your startup either. It’s about testing and finding the right channel fit for your business.
Essentially every major consumer app acquired their early users using these methods, including Netflix, Instagram, Uber, Tinder, TikTok, and many more.
1. Find your users, offline
Once you identify who your target users could be, go find them in real life and get them to try your product! If they are not interested in what you have made, your product either doesn’t solve their problem or you have got the wrong target users.
To kickstart Uber’s growth in new cities, they often went to airports and downloaded the Uber app for taxi drivers and handed out coupons to riders. Tinder’s co-founder ran around college campuses handing out flyers and pitched to fraternities. Identifying your target user is important, if you know where they would conjugate, you want to be there too.
2. Find your users, online
Your target user could conjugate online too, and if they do, find them, and get them to them try your product! The same rule applies here, if the online users are not interested in what you have made, iterate on the product or the target users. Dropbox did exactly this, launching on Hacker News with only a video, even without a functional product.
You want to infiltrate your target user’s community, fit in, use their language, and even befriend them. The advantage in interacting with users online is that you have the option to remain anonymous, but the disadvantage is that gaining their trust could take a longer period of time, but this is exactly how Netflix launched their product across America, slowing turning pockets of online movie enthusiast and cinephiles into Netflix users.
3. Invite your friends to kickstart a positive network effect
To successfully launch a product through your own network you need to leverage referral programs. Products which works well with this method generates value for its users by acquiring more users, thus creating incentive for both the inviter and invitee. Reid Hoffman launched LinkedIn into his network of founders and entrepreneurs, marking the platform really attractive for job seekers, thus creating a positive network effect which attracts more employers, which then again attracts more employees.
Two takeaways that are fundamental in getting your first 1,000 users is to “do things that don’t scale” and to narrowly define your target users. By doing both, you validate your product's problem/solution fit and product/market fit.
I’ll cover the other 4 methods of acquiring your first 1,000 users in my next post, but in the meantime, if you got some value out of this post, please like and share!
Lastly, if you are a founder working on a startup in SEA, or working with AI / blockchain, apply to AppWorks Accelerator #21 to join the largest founder community in Greater Southeast Asia today >>> https://bit.ly/2NcjYGV
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by Jack An
Analyst, AppWorks
Image credit: Lenny Rachitsky
「founders dilemma」的推薦目錄:
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founders dilemma 在 AppWorks Facebook 的精選貼文
Early Stage Startup’s Acquisition Dilemma:
A common question among early stage founders is trying to figure out whether to optimize their existing acquisition channel or to find a new one, and a common answer they often receive is “it depends.”
If you are in this situation, and still haven’t figured out what to do, here are three frameworks that’ll help you navigate through the dilemma:
1. Maximize advertising inventory
Advertising inventory is the amount of ad space that is available to be sold to the advertiser, the square centimeters of ad spaces in a magazine or newspaper.
In the internet world, this refers to the amount of traffic an acquisition channel can offer, in terms of AdWords and SEO, this translates to the maximum clicks you can generate through search results.
If you are already ranking high for keywords that you care about, then there really isn’t much to optimize, you’ll likely face diminishing returns for your future efforts with a maximized inventory. But if you are only ranked 4th or 5th, and if optimizing this inventory will likely grant you 2X the traffic, then it’s worth optimizing.
Once you have maximized an acquisition channel’s inventory, it is time to find a new channel or campaign that can generate 2X the business.
2. New channel vs optimization
When a new acquisition channel launches and fails, it is often due to failing to understand how to operate the channel or it is simply a bad channel for the business, and it usually can't be fixed with optimization alone.
Handing out flyers won’t work for certain startups, and for these startups, optimizing the content on the flyer won’t lead to drastic improvement in acquisition. One signup with a “10% improvement” is still one sign up. So it is important to have the business fit the channel, and test to see if the channel is how customers find their solution to their problem.
Lastly, when it comes to early stage startups, most of the data are not going to be statistically significant, so the variations in results are simply random, thus making optimization very difficult. To avoid this common trap, look for big changes in results, these changes are the important changes that provide learnings and progress.
3. What to optimize and what to try?
There are two factors to take into consideration, time and money. If time is the abundance resource, then channels like content marketing, SEO, e-mail, referral and partnerships are more suitable to try. If money is the abundance resource, then paid marketing channels are better to experiment with.
In terms of optimization, after maximizing the best performing channel, early stage startups should focus on optimizing their website and landing page because every campaign will eventually lead there.
A 10% increase on bounce-rate equates to 10% more revenue across all of your campaigns. It could be that the testimonials are not strong enough, the value proposition is unclear, or that the pricing page is confusing. There are plenty of optimizations that can be made on the website to produce substantial results, especially for early stage startups.
If you're a founder working in SEA or on AI / Blockchain, apply to our latest batch AppWorks Accelerator #21, join the biggest founder community in GSEA to accelerate your growth! >> https://bit.ly/300CR7g
founders dilemma 在 AppWorks Facebook 的最佳解答
When startup founders are working hard in the early stages, they often spend most of their time building the game-changing product, launching the brand and raising capital. In this situation, recruiting is mostly an afterthought. However, in the grand scene, when you’re building a startup that is going to win in the long-run, finding talent is just as important as business development or acquiring customers, if not more.
Like the classic chicken-and-egg situation, savvy startup founders delay their hiring until they can afford it, yet, their business can’t afford to grow until their team has grown. Business growth can be extremely difficult unless you have the right team. Stucking in this dilemma can be very frustrating.
At some point, founders need to get good at hiring themselves. But for beginners, there are a few pieces of advice I can give to help make crossing the initial hurdle easier, which you can find through the article here >>> https://e27.co/breaking-the-hiring-chicken-and-egg-for-early-stage-founders-20191203/
At AppWorks, other than investment Associates and Analysts, we also have specialist like Recruiting, Legal, Finance, Marketing, Design… etc, to help your startup grow to the next level.
AppWorks is now accepting applications for our next AI/blockchain only batch. Be sure to apply before the final deadline December 16, 2019 >>> http://bit.ly/2rTFOaS
By Izza Lin,
Recruiting Master
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