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Where to spend the first $10k?
Steven Dupree (@MarketFound)November 4, 2016
Weapons of Mass Distribution
State Highway 7New Zealand
April 2008
Who is this guy?
Steven Dupree@MarketFound
A handy checklist: Invest in “zero cost” channels Pull through active seekers Copy your competitors Harass your early adopters Test on the cheap Mitigate business hurdles Learn from failure
Steven Dupree@MarketFound
1. Invest in “zero cost” channels
Consider front-loading “zero cost” acquisition channels such as search engine optimization, content, and social
Understand the true cost of “zero cost” channels
Distinguish between long-tail initiatives and hits-based initiativesKey idea: For a young startup with upside, “zero cost” channels can yield long-tail returns at $0 CPA (excluding the cost of your time)
Credibility
CrawlabilityContent
Three “C”s of Search
Steven Dupree@MarketFound
2. Pull through “active seekers”Understand the difference between push
marketing and pull marketingKnow the advantages of pull marketingIdentify sources of “active seekers”
Key idea: It’s much more cost effective to acquire customers who have a need for and are actively seeking your product or service.
PUSH
PULL
Steven Dupree@MarketFound
3. Copy your competitorsIdentify the 800-pound gorillas (and 80-
pound chimps) that you can study as a starting-off point
Include complimentary products or services that you can learn from too
Realize your competitors are not investing in certain channels for a reasonKey idea: People generally discount competitors as inferior, but there’s usually a reason they do things the way they do. And hey, it’s better than starting from scratch.
Source: Whiteflash.com
Steven Dupree@MarketFound
4. Harass your early adoptersLearn everything you can from your first 100
customersHave multiple people in your company
administer interviews and/or read survey feedback
Track “How did you hear about us?” in addition to cookie data and attribution modelsKey idea: Your early customers know better than you or I. Glean everything you can from them to surface ideas for tests or channel opportunities.
Early adopter data points:Books
MoviesInfluencersLife eventsRecent purchasesSocial media habits
MusicSports
EducationMobile usage
Steven Dupree@MarketFound
5. Test on the cheapFind paid channels that allow you to start with
small testsTry a traffic light approach: scale, tweak, or
kill new channels based on ROIBuild a queue of incremental tests and
transformational tests
Key idea: Initially test channels (such as Google) that enable you to smart small, scale, and run adjacent tests. As your company grows, your test budget will allow for larger tests.Steven Dupree
@MarketFound
6. Mitigate business hurdlesIdentify the hurdles your prospects must
overcome to become customersNote that your conversion rate is the product of
success rates across all hurdlesPrioritize tests that naturally mitigate hurdles
Key idea: All things equal, channels that naturally overcome hurdles in your business have higher likelihoods of success. Examples may include “active seeker” campaigns and online channels generally.
X% are qualified
Y% get off their butt
Z% trust enough to pay
Conversion Rate: XYZ%
Sample hurdles:
Steven Dupree@MarketFound
7. Learn from failureRecognize tests with greater upside tend to have
higher probability of failure (transformational vs. incremental)
Parameterize future tests based on past learning
Key idea: Failed tests yield knowledge which inform future tests and improve ROI. The worst thing to do is nothing.
Steven Dupree@MarketFound
Q&A Invest in “zero cost” channels Pull through active seekers Copy your competitors Harass your early adopters Test on the cheap Mitigate business hurdles Learn from failure
Email me: [email protected] me: @MarketFound
Subscribe to e-newsletter: www.market-found.com