Twago democamp poznan_presentation

07. Juli 2009 © 2009 twago 0www.twago.de

Democamp Poznan

Gunnar Berning, Founder and CEO of twago.com

Things I learned building a startup in Europe

Poznan, October 22nd, 2010

- work different

© 2010 twago1twago.com

twago is the EBAY for professional experts

Web & Programming

Design & Media

Company services

Customers

European customers

Freelancer

Startups

Webshops

SME

Experts

National and international

Companies

Freelancer

Verified

Internet based marketplace for experts

Confidential Projects (NDAs)Auth. evaluation system

Projectmanagement ToolsEscrow

Safe Payment


Within a year after start, twago is already bigger than market leader Elance in the core markets Germany and Italy

Cust.:

Project:

Volume:

Programming

50.000 EUR

Provider:

Expertise:Employees:

Translations1200

Qualifications: 34 Languages

Provider:

Expertise:

Employees:

Programming

100

Cust.: Spreadshirt

Project:

Volume:

Social Media Widget

50.000 EUR

• Project volume >0,5 Mn. EUR per month already months after start

Provider:

• >30.000 experts

• from 115 countries worldwide

• Avg. project evaluation: 4,9(Scale: 5 = very good, 1 = bad quality)

Customer:


All Startups have the same goal in mind

Make the most out of your

existing budget


TeambuildingHire only team members which make you better, not bigger

• Hire only team members which make you better rather than bigger

• Create entrepreneurs – make them responsible

• Enable them to take decisions!

• Keep your risk under control: Use interns and trainees

• Min. duration = 6 months

• Really good people = high salaries, compensate with equity, significant break-even bonus

• Make a cut if it doesn’t work

• Invest your time: Coaching, coaching, coaching

• Celebrate!

Start Now


Getting Capital –there is not a single solution for everybody

• Talk to the right target group

• Expect highly individual comments

• Start with prio B VCs or business angels

• Practice in real life, learn, adapt

• The market is setting your price, not the VC valuation method

• Don‘t use „[email protected]“

• Create and show your BATNA (best alternative to negotiated agreement)

• Everything takes (much) longer than you think

• You can be peer to everybody


Building the product –We eat our own food

Product specification:

Spec. Homepage-Design:

Coding:

Translations:

Branding/Name:

Design of Webseite:

Design of Company Logo:

(Internally)

Germany

Russia

Switzerland

USA

Canada

Philipines

twago made use of outsourcing and offshoring:

twago successfully showed the „proof of concept“ –Huge chance for all startups

Which experts to choose depends on

your requirements

expertise

Savings roughly 60%


The top 9 rules for Offshoring success

Be honest: Are you an Offshoring-Person?

Choose experts wisely

Basic understanding of different cultures

Increase communication: +50%

Make use of time zones

Use simple project management tools

Neutral code checks to get best quality

Secrets to stay secret: Use NDAs

Don‘t expect wonders9

8

7

6

5

4

3

2

1


How we started...

• Understand your customers: Master thesis

• Be fast with a good version

• Learn from your customer as early as possible: Observe and ask

• Trial and error

• Start with SEO yesterday

• Create reference cases (e.g. big brands)

• Communication / PR: Easy wins with data mining, adapting to news

• Focus:

• Try to become #1 in a niche, then expand

• What creates more customers: Google ads or XYZ

• Remember your key levers: optimizing your SEM-CTR from 0.75% to 1,5% lower your customer acquisition cost by 50%


Create landing pages for your customer

160 Landing pages


Analyze, analyze, analyze:Measure – think – change!

Key drivers

Traffic and customer behaviour

Conversion tests (A/B)


Few words: Focus „Clean“ Build trust:

Verisign Logo, Phone number, green bulltes Reduce exit-options

Improvements New DesignOld Design

Quelle: twago

Landing Page Test optimized conversion rates and reducesuser acquisition costs significantly

Landing Page A/B Test

3%* 20%*


Expect the unexpected


Thanks and feel free to follow us...

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www.facebook.com/twago.com

www.twitter.com/twago_inside

or email me: [email protected]

Business

Twago democamp poznan_presentation