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Ultimate Guide to Funnel Optimization

Ultimate Guide to Funnel Optimization

www.slideshare.net
Travis Hardman Travis Hardman
3 months ago
Building and optimizing the landing page > purchase funnel. From Digital Intent.
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The Pricing Model That Increased Our Free Trial Signups by 358% (and Revenue by 25%)

The Pricing Model That Increased Our Free Trial Signups by 358% (and Revenue by 25%)

groovehq.com
Travis Hardman Travis Hardman
5 months ago
As we talked to more and more site visitors, something we should’ve known all along became very clear: our pricing model was ridiculous. It was overwhelming, and made the decision to buy from Groove a complex one.
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Takeaway: Never complicate what you can simplify. Especially if your competitors are simplifying. Making your customers work to understand your pricing is never the right approach.
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People wanted to pay for the number of support tickets they handled, not the number of agents on their team.
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Even though people told us that this approach would make them happy, when we dug deep and asked site visitors for honest feedback, we found that they ended up being scared about the uncertainty of never knowing what they’d be paying in a given month.
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Takeaway: Your customers are your lifeblood. Love them, support them, and help them succeed. But you don’t always have to listen to them. For many issues (like pricing), what they say they want and what they’ll actually act on are entirely different.
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One single price. Everything included. No extra charges. 14 days free.
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We had a winner. Almost immediately, we began to see conversions rise -- more than 350% over the previous model!
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Takeaway: No pricing model is right for everyone. For us, a simple, flat price finally worked. For you, that might be increasingly robust tiers of a business app, or pay-as-you-go. Think about what your customers expect from your product, and make your pricing reflect that.
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We put together a chart that compared what a user would pay for Groove, versus what they would pay using our competitors’ apps
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Notice how this isn’t a “feature matrix” that only has a few features checked in our competitors’ columns, and a column full of checks for Groove. These are bullshit, and everyone knows it.
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Amawalk Farm - Certified Organic Growers

Amawalk Farm - Certified Organic Growers

www.amawalkfarm.org
Nadia Uddin Nadia Uddin
6 months ago
42 Wood Street, Katonah NY 10536
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914-245-2319 | contact@amawalkfarm.org
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How to build great products | Hacker News

news.ycombinator.com
Travis Hardman Travis Hardman
6 months ago
I would extend the model a bit and divide the Gamechangers into two categories: one (and only one) Hook and 1-3 Painkillers. Your Hook is the feature that your market didn't know was possible, but thinks is awesome now that it exists. Your Painkillers fix long-annoying problems in the problem space.
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One easy way to categorize features into Hook, Painkillers, Showstoppers, and Distractions is to put yourself into the position of the user and try to accomplish the task they want to accomplish. Distractions are anything you grumble about but then go about your business. Showstoppers are anything that you drop what you're doing to fix, because you can't accomplish what you want to otherwise. Painkillers are things that make you so depressed about your task that you think about doing another task entirely. The Hook is interesting, because by definition it's outside of conscious awareness and requires an outsider's perspective to see. But if your cofounder is doing the same exercise, putting himself in the mindset of a user, then you can use that to illuminate it. The Hook is the feature that convinced your cofounder that this was a company worth starting.
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An interesting thing is that though the bulk of your engineering time will be spent on eliminating showstoppers, basically all of your marketing should be spent on the Hook. Let customers discover the Painkillers for themselves; if you try to market yourself as solving more than one problem, your customers will get confused and you won't solve any.
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How to build great products

www.defmacro.org
Travis Hardman Travis Hardman
6 months ago
  • A gamechanger. People will want to buy your product because of this feature.
  • A showstopper. People won’t buy your product if you’re missing this feature, but adding it won’t generate demand.
  • A distraction. This feature will make no measurable impact on adoption.
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    Empirically, successful products have one to three gamechanging features, dozens of features that neutralize showstoppers, and very few features that are distractions. Your job is to build an intuition about your space to be able to tell these categories apart.
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    If you’re doing more showstopper features than you absolutely need to, you’re wasting resources.
    Some features will be showstoppers for some people but not others.
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    If you put more effort into any given showstopper than the absolute minimum you can get away with, you’re wasting resources.
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    If you’re doing more than three gamechanging features, you’re wasting resources.
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    Finally, if you don’t pour enough creative energy into any given gamechanging feature, you’re wasting resources.
    Gamechangers have to be the things that really blow people away.
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    a feature is only a gamechanger if the person signing the proverbial check recognizes it as one. Otherwise, it’s a distraction.
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    you can’t design a great product unless you live, eat, and breathe like your users do. You need to know exactly who your user is, what their problems are, how they perceive your product, and who helps them make buying decisions.
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    Some features aren’t sufficiently impressive on their own, but become gamechangers in aggregate.
    Each feature on its own isn't a gamechanger, but the combination is. This is hard to pull off and should probably be avoided, but is possible.
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    A great way to get around these problems is to write down a product mission. Think of it as a function that accepts a given feature as an argument, and returns one of the three categories above. A good function definition is concise, understandable, and repeatable. Ideally after reading it, most people on your team will be able to categorize features themselves in the same way you would.
    Product mission. Great idea and great way to think about it.
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    When you’re building a product, the mission should be the first thing you work on. If your mental model is good enough to write a product mission that inspires everyone in your company, everything else will fall into place.
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    57 startup lessons

    www.defmacro.org
    Travis Hardman Travis Hardman
    8 months ago
    Some good stuff in this piece I thought, particularly in the marketing section. I highlighted some of my favorites. @nadia-uddin
    If you can’t get to ramen profitability with a team of 2 – 4 within six months to a year, something’s wrong. (You can choose not to be profitable, but it must be your choice, not something forced on you by the market).
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    Pick the initial team very carefully. Everyone should be pleasant to work with, have at least one skill relevant to the business they’re spectacular at, be extremely effective and pragmatic. Everyone should have product sense and a shared vision for the product and the company.
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    If you have to give away more than 15% of the company at any given fundraising round, your company didn’t germinate correctly. It’s salvageable but not ideal.
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    If you haven’t earned people’s respect yet, fundraising on traction is an order of magnitude easier than fundraising on a story. If you have to raise on a story but don’t have the reputation, something’s wrong.
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    Most investor advice isn’t very good for building a magical product. Nobody can help you build a magical product — that’s your job.
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    Starting with the right idea matters. Empirically, you can only pivot so far.
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    Assume the market is efficient and valuable ideas will be discovered by multiple teams nearly instantaneously.
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    Pick new ideas because they’ve been made possible by other social or technological change. Get on the train as early as possible, but make sure the technology is there to make the product be enough better that it matters.
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    If there is an old idea that didn’t work before and there is no social or technological change that can plausibly make it work now, assume it will fail. (That’s the efficient market hypothesis again. If an idea could have been brought to fruition, it would have been. It’s only worth trying again if something changed.)
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    Educating a market that doesn’t want your product is a losing battle.
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    Make sure you know why users will have no choice but to switch to your product, and why they won’t be able to switch back.
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    Ask two questions for every product feature. Will people buy because of this feature? Will people not buy because of lack of this feature? No amount of the latter will make up for lack of the former. Don’t build features if the answer to both questions is “no”.
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    Build a product people want to buy in spite of rough edges, not because there are no rough edges. The former is pleasant and highly paid, the latter is unpleasant and takes forever.
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    Learn the difference between people who might buy your product and people who are just commenting. Pay obsessive attention to the former. Ignore the latter.
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    Product comes first. If people love your product, the tiniest announcements will get attention. If people don’t love your product, no amount of marketing effort will help.
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    Watch Jiro Dreams of Sushi, then do marketing that way. Pick a small set of tasks, do them consistently, and get better every day.
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    Reevaluate effectiveness on a regular basis. Cut things that don’t work, double down on things that do.
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    Market to your users. Getting attention from people who won’t buy your product is a waste of time and money.
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    Don’t say things if your competitors can’t say the opposite. For example, your competitors can’t say their product is slow, so saying yours is fast is sloppy marketing. On the other hand, your competitors can say their software is for Python programmers, so saying yours is for Ruby programmers is good marketing. Apple can get away with breaking this rule, you can’t.
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    Product comes first. Selling a product everyone wants is easy and rewarding. Selling a product no one wants is an unpleasant game of numbers.
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    Qualify ruthlessly. Spending time with a user who’s unlikely to buy is equivalent to doing no work at all.
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    Working on the wrong thing for a month is equivalent to not showing up to work for a month at all.
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     If You Want to Raise Prices, Tell a Better Story

    If You Want to Raise Prices, Tell a Better Story

    blogs.hbr.org
    Travis Hardman Travis Hardman
    8 months ago
    story analysis: an analysis of a product's capabilities to fulfill a profound human need, to tell a story that gives your customers' lives richer meaning
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    it is not the objects themselves, but the context, the provenance of the objects, that generates value
    why does one toaster cost $400 and another $20?
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    The value of these formerly abandoned or forsaken objects suddenly and mysteriously skyrocketed when they were accompanied by a story.
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    a can opener until it is a can opener designed by Michael Graves and a part of the permanent collection of the Museum of Modern Art. A shoe is a shoe is a shoe until it is a pair of TOMS shoes
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    10 things I've learnt about lean startup

    10 things I've learnt about lean startup

    welovelean.wordpress.com
    Nadia Uddin Nadia Uddin
    9 months ago
    Another way of reducing waste is to move away from documentation to more doing. Whether a workshop, a prototype, interview, etc lean requires working models to help communicate ideas. Rather than talk in conceptual terms or on paper, show people something. It can be a sketch, a wireframe or a Bootstrapped prototype. Whatever is the cheapest, fastest way to test out your assumptions with users.
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    The Case for the Fat Start-Up

    The Case for the Fat Start-Up

    allthingsd.com
    Nadia Uddin Nadia Uddin
    9 months ago
    Here is my central argument. There are only two priorities for a start-up:
    Winning the market and not running out of cash. Running lean is not an end. For that matter, neither is running fat. Both are tactics that you use to win the market and not run out of cash before you do so. By making “running lean” an end, you may lose your opportunity to win the market, either because you fail to fund the R&D necessary to find product/market fit or you let a competitor out-execute you in taking the market. Sometimes running fat is the right thing to do.
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    But in a bust (like the one we were in), having a lot of cash can be a huge competitive advantage because you can use that cash to put enormous pressure on your underfunded competitors. And that’s what we did.
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    Start-up purgatory occurs when you don’t go bankrupt, but you fail to build the No. 1 product in the space. You have enough money with your conservative burn rate to last for many years. You may even be cash-flow positive. However, you have zero chance of becoming a high-growth company. You have zero chance of being anything but a very small technology business (see Navisite). From the entrepreneur’s point of view, this can be worse than start-up hell since you are stuck with the small company.
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    As you listen to the virtues of the lean start-up–lightweight sales, light engineering, and so on–keep the following in mind:

    • If you are a high-tech start-up, your value is in your intellectual property. Don’t stare at your spreadsheets so long that you get confused about that.
    • You cannot save your way to winning the market.
    • The best companies can raise money even in this market. If you are one of those, you should consider raising enough to wipe out your competition.
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    Be wary of the Lean Startup?

    Be wary of the Lean Startup?

    upstart.bizjournals.com
    Nadia Uddin Nadia Uddin
    9 months ago
    Even the most brilliant and experienced people don't know enough to outwit emerging, rapidly changing, and increasingly complex markets, especially when it comes to products and business models without precedent.”
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    A lean startup is only really self-fundable," he says. And the reason is that, in the real world, how many people are willing to give their money to someone who wants to go off and conduct "experiments" with it? Instead, someone funding a business, whether an entrepreneurial or an intrapreneurial one, wants confidence, comfort, and proof you know what you're doing.
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    Why Lean Startup Doesn't Work in Healthcare - Health 2.0 Houston

    health20houston.com
    Nadia Uddin Nadia Uddin
    9 months ago
     First, for Lean Startup to be successful, you must be able to have a very short iteration cycle so that you can rapidly test your hypothesis and iterate the product.  However, the average person probably encounters healthcare maybe once or twice a year.  My impression is that most people put healthcare in the same mental box as doing taxes or planning for retirement — it’s not something you look forward to and generally try to avoid.   Second, my opinion is that for Lean Startup to work, the person choosing the product and the person purchasing the product has to be one and the same.  For example, when you buy an iPhone, you are both the one choosing it and the one paying for it.
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    That complexity of having essentially a three-sided market makes it even more difficult to apply Lean methodology.
    @travishardman Insightful observation that lean start up model may be a detriment to three-sided markets (i.e., enterprise models)
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    Is there any flaw or drawback to the lean startup methodology?

    Is there any flaw or drawback to the lean startup methodology?

    www.quora.com
    Nadia Uddin Nadia Uddin
    9 months ago
    Lean startups work well when the general problem is solvable, but your risk is entirely market risk - that is, the risk that no one wants your product. So if you were trying to build a Gmail killer, then it makes sense to build lean and iterate until you have market fit.
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    Lean startup models, applied with wisdom, can work for entrepreneurs. Applied naively, they become back-seat driving mechanisms with which investors can micromanage startups, to the detriment of both. But the model, being a product of our peculiar times, has the asymmetric balance of power between investors and entrepreneurs wired into its very DNA.
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    ts biggest flaw is probably its popularity.
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    So previously validated assumptions could become invalid after a while, which could invalidate a great part of the assumptions graph. 
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    So, the short answer is: the drawback -- I'd rather say: the danger -- to the lean startup methodology is that many of them will not spend enough energy thinking beyond the very near future which will hurt them in the long run.
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    'Lean start-up' concept has its flaws

    'Lean start-up' concept has its flaws

    www.theglobeandmail.com
    Nadia Uddin Nadia Uddin
    9 months ago

    The flaw in the lean start-up approach is how these companies manage to attract enough customers to get the feedback they need to add more features that will make them successful.

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    Regardless of how you cut it, marketing can play a key role in whether a start-up is a success or failure, which is why it's curious that it's not discussed much as part of the lean start-up approach.

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    Lean Startups suck. Here are 10 reasons why...

    Lean Startups suck. Here are 10 reasons why...

    nanodome.wordpress.com
    Nadia Uddin Nadia Uddin
    9 months ago
    If his ideas were scientific, they would have been tested already: but because they’re not, they’re merely hypothetical, which is a different thing altogether.
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    but metrics and dashboards have been in high management theory vogue for well over a decade, so they are merely things that Ries has appropriated rather than devised in any useful way.
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    But as far as I know, there is as yet no substantive academic research on whether relying so utterly on customer feedback is in fact a good way to design new things: it could be argued just as strongly that it’s merely an effective way of making incremental design changes.
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     Angels don’t want to fund your industrial education, they want to fund your market-focused business.
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    In fact, Ries’s idea’s correct title should probably be “The Learn Startup” because it is 100x more to do with learning than with reducing process waste and quality management: it’s certainly not to do with doing things cheaply or even fast, because educating yourself into a constantly changing market via progressive iteration can take an entire lifetime, and can happily absorb every penny you care to throw at it.
    @travishardman This statement supports our observation that the lean startup methodology can perpetuate a need of validation that does not exist and hinders progressive iteration
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    Regardless, you’d probably be better off reading up on mechatronics development, because this covers an awful lot of the same area (did I mention that it’s not new?) without telling you that you need to iterate in order to build worthwhile things.
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    “Lean Startup” ideas have not yet been tested.
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    et I would argue that to build company value and have lasting societal impact, startups need to be (quite literally) revolting.
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    Lean is not a movement. It is not even a popular revolution.
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    if you applied Lean Startup principles to your Real Life
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    In my experience, customers rarely propose big changes to anything you show them, which helps to reinforce a “micro-pivoting” incrementalist mindset
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    Marc Andreessen: Not every startup should be a Lean Startup or embrace the pivot

    Marc Andreessen: Not every startup should be a Lean Startup or embrace the pivot

    gigaom.com
    Nadia Uddin Nadia Uddin
    9 months ago
    Not all startups can be Lean Startups
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    Don’t use the Lean Startup as an excuse to skimp on sales and marketing

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    Don’t develop a “fetish for failure”

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    What's Wrong With the Lean Start-up

    What's Wrong With the Lean Start-up

    www.inc.com
    Nadia Uddin Nadia Uddin
    9 months ago
    Lean start-up principles encourage entrepreneurs to introduce products quickly to the market and learn from customer feedback. It sounds smart on its face, because learning from customers is hugely important. But going to market with a lackluster product can be insane.
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    They improved upon the initial work of others, produced a better solution, and grew to dominate their markets.
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    Entrepreneurs certainly can use standard accounting tools successfully; they just need to understand how start-ups (and thus their GAAP accounting) differ from established enterprises.
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    However, entrepreneurship and innovation are not paint-by-numbers activities. Company founders need to think—and be smarter—about their new ventures. And that does mean entrepreneurs must be resourceful, adaptable, and learn from what doesn't work. But trying to follow a system designed to produce a million identical, high-quality Corollas, Camrys, and Siennas makes very little sense.
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    Do Things that Don't Scale

    paulgraham.com
    Travis Hardman Travis Hardman
    9 months ago
    @nadia-uddin This is the article Jen mentioned earlier today. If you haven't spent some time reading all of Paul Graham's essay's, they're all exceptionally good.
    It's harmless if reporters and know-it-alls dismiss your startup. They always get things wrong. It's even ok if investors dismiss your startup; they'll change their minds when they see growth. The big danger is that you'll dismiss your startup yourself.
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    Another consulting-like technique for recruiting initially lukewarm users is to use your software yourselves on their behalf. We did that at Viaweb. When we approached merchants asking if they wanted to use our software to make online stores, some said no, but they'd let us make one for them.
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    So why do founders think launches matter? A combination of solipsism and laziness.
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    Partnerships too usually don't work. They don't work for startups in general, but they especially don't work as a way to get growth started. It's a common mistake among inexperienced founders to believe that a partnership with a big company will be their big break. Six months later they're all saying the same thing: that was way more work than we expected, and we ended up getting practically nothing out of it.
    This is key. It's very easy to get roped into partnerships, spend tons of time setting them up, and watching almost nothing happen.
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    If you have 100 users, you need to get 10 more next week to grow 10% a week. And while 110 may not seem much better than 100, if you keep growing at 10% a week you'll be surprised how big the numbers get.
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    Over-engaging with early users is not just a permissible technique for getting growth rolling. For most successful startups it's a necessary part of the feedback loop that makes the product good.
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    if the market exists you can usually start by recruiting users manually and then gradually switch to less manual methods.
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    It's not the product that should be insanely great, but the experience of being your user. The product is just one component of that.
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    For example, Ben Silbermann noticed that a lot of the earliest Pinterest users were interested in design, so he went to a conference of design bloggers to recruit users, and that worked well.
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    Exclusive: Juror pushes for new laws following Zimmerman trial

    Exclusive: Juror pushes for new laws following Zimmerman trial

    www.cnn.com
    Nadia Uddin Nadia Uddin
    9 months ago
    The juror, who was interviewed by CNN, said she will not grant other interviews and wants to get back to a normal life. "For reasons of my own, I needed to speak alone," she said.
    Take notes on a highlight
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    My Product Has Failed | Hacker News

    news.ycombinator.com
    Travis Hardman Travis Hardman
    9 months ago
    Like many of us, I've been reading hacker news and related sites for years, but it was only after I attempted to actually apply all that knowledge I thought I had that I realized how unprepared I really was.

    It's natural to read an article about a failure and feel like the points made are obvious - but that's because we aren't imagining all the pitfalls that we may have fallen into along the way that others would have avoided. Not only that, but the rules have so many exceptions that it could have just as easily gone the opposite way (I wish I hadn't listened to my customers) and we would still say it was an obvious conclusion.

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    The Best Marketer in Silicon Valley Is Doing Everything You're Not Supposed to Do

    The Best Marketer in Silicon Valley Is Doing Everything You're Not Supposed to Do

    blog.hubspot.com
    Travis Hardman Travis Hardman
    10 months ago
    He picks fights with journalists.
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    Musk sued the BBC for libel. He lost in court, but won in the court of public opinion. The fight raised awareness of Tesla.
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    Musk went ballistic on Twitter, accusing the writer of fabricating his results. “NYTimes article about range in cold is fake,”
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    My theory is that most people hate journalists, so when a CEO bashes one of them, the world roots for the CEO. Plus, when Musk attacks his critics, he looks like a proud papa defending his kid.
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    He likes to drop hints and build suspense.
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    he does it on Twitter. And every time he does this, the tech press jumps to write up the news that Musk just tweeted a hint about a new product. Then when the product is announced, the press all covers that, too
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    every CEO likes to announce good news. But Musk likes to go a little further and really rub it in.
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    Sure, he also pulled the conversation back to Tesla. But now Tesla and its electric cars were set in the context of a space-age future -- great brand positioning.
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    The lesson? Tesla is a beloved brand with incredibly zealous fans. Those fans include loads of people who love Tesla even though they haven’t even bought a Tesla, and probably can’t afford one.
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    # 1
    How To Build A Great Product By Removing Barriers To Usage

    How To Build A Great Product By Removing Barriers To Usage

    platformed.info
    Nadia Uddin Nadia Uddin
    11 months ago

    I am a <USER DESCRIPTION>

    Trying to <DO XYZ>

    But I’m unable to do so because of <A BARRIER>

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    Products that help ‘unskilled’ users do something they couldn’t have done before break the skill barrier and open up a new segment of users.
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    The Time/Effort Barrier
    #1 Value proposition
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    Another common theme that disrupts the time/effort barrier is aggregation
    Support of value prop#1
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    The Money Barrier
    Create a new market by offering something cheaper or free
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    Unbundling is another way the internet brings down the money barrier.
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    The Resource Barrier
    Reduce barriers to make something happen
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    The Access Barrier
    Remove the Broker
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    Selling Your Software To Businesses - TwilioCon 2012 presentation | Hacker News

    news.ycombinator.com
    Travis Hardman Travis Hardman
    11 months ago

    - Pricing page with 4 plans. Try to price each plan to a different customer in your targeted market what it is worth to them, not what it costs you.

    - Annual billing: Ask via a 1 time special email after the person has started using it and likes it

    - Have live chat to make more sales

    - Email more during the trial period at least 6-8 times in the first month

    - Offer a free month "course" via email, on the 4th email or so start working in how your product solves the pain/problem.

    - Send a "rescue" email if the person seems like they have become busy and might fall away

    - Some bigger organizations will want a sla & support agreement even if it is just you already working on the system fixing things anyway.

    - Offer a Service Level Agreement if someone asks for it, charge more ask for a 1 yr commitment

    - Offer a support / maintenance contract, ask for a 1yr commitment on the regular fee to lock customer in.

    - Offer industry options, HIPPA, etc charge more

    - Practice saying "I can do that with a 1yr commitment" when customer ask for something special

    - Highly consider getting errors and omissions insurance

    - Don't negotiate sales based upon your cost. Don't even mention your cost it is not relevant. What matters is how much the customer will 'save' or 'make' with your product.

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