Web 2.0 Startup Marketing Plan Planning for the Most Important Marketing Execution in the Life of Your Startup Sean Ellis Go To Market Advisor for Startups Email: sean (at) startup-marketing.com Blog: Startup-Marketing.com

This Plan Has Evolved Over 5 Startups Startup-Marketing.com And it’s a work in progress that will continue to evolve. Startup When My Role Description Stage Uproar 1996 - 2001 VP Marketing Leader Online Games NASDAQ IPO in 2000, Acquired by Vivendi Universal LogMeIn 2003 - 2008 VP Marketing Leader Remote PC Access Filed for NASDAQ IPO in Jan 2008 Xobni Jan 2008 - Current VP Marketing Interim, Advisor Leader Email Contact Profiles VC (A) – Khosla Ventures, FRC Eventbrite Aug 2008 - Current Go To Market Advisor Event management VC (A) – European Founders’ Fund Dropbox Sep 2008 - Current Go To Market Advisor Virtual Drive VC (seed) - Sequoia

Format is Like Most Marketing Plans 1) Situation Analysis: Discover Users & Metrics 3) Projections: Budget, Team, Sales 2) Marketing Strategy: Sync across company Startup-Marketing.com But early stage startups require more discovery and experimentation

Situation Analysis: Check Assumptions Discovery - Interview/survey prospects frequently to validate or refine assumptions. Startup-Marketing.com Solutions Comparison Problem Message That Motivates Target Users with $

Situation Analysis: Key Metrics Most important metrics  Allowable Acquisition Cost Lifetime Value Allowable Acq. Cost Other important metrics Source data Visit-to-registration rate (Or visit to download rate) Registration-to-trial rate Trial-to-transaction rate Average transaction size Transactions per customer Months per subscriber Lifetime value must exceed acquisition cost Startup-Marketing.com

Most important metrics  Allowable Acquisition Cost

Other important metrics

Source data

Visit-to-registration rate

(Or visit to download rate)

Registration-to-trial rate

Trial-to-transaction rate

Average transaction size

Transactions per customer

Months per subscriber

Strategy: Get Free Users Early Start early with free marketing channels SEO (self), blog, beta sites, etc. Develop viral features Acquiring users for free is definitely within the allowable acquisition cost Early user flow essential for discovery and optimization. Startup-Marketing.com

Start early with free marketing channels

SEO (self), blog, beta sites, etc.

Develop viral features

Strategy: Optimize Biz Economics Increase size and frequency of transactions 30% 8% Increase funnel conversion rates Visit-to-trials Trial-to-transaction Expands viable paid marketing options Reduces adoption barriers Increases allowable acquisition costs Startup-Marketing.com

Increase funnel conversion rates

Visit-to-trials

Trial-to-transaction

Expands viable paid marketing options

Reduces adoption barriers

Increases allowable acquisition costs

Strategy: Now Start Testing Paid Channels Test paid channels and optimize individual funnels PR : Great for “innovators” Demand harvesting channels (great for “disruptors”) Create unique onramps for each usage and user type SEM, directories Demand creation last (challenging and expensive) Get ideas by monitoring competitors and overall trends Widgets, webcasts, sponsorships, banners, radio, trade shows Test user acquisition channels most likely to have easy, positive ROI first (start with lowest hanging fruit ) Startup-Marketing.com

Test paid channels and optimize individual funnels

PR : Great for “innovators”

Demand harvesting channels (great for “disruptors”)

Create unique onramps for each usage and user type

SEM, directories

Demand creation last (challenging and expensive)

Get ideas by monitoring competitors and overall trends

Widgets, webcasts, sponsorships, banners, radio, trade shows

Strategy: Demand Creation Sequence For demand creation, start with target that is motivated to try and buy solution as is Synchronize targets with sales and product teams Startup-Marketing.com Target Message New feature needed Begin targeting Market Segment 1 Message 1 N/A Start Oct 2008 Market Segment 2 Message 2 Feature 1 Start Feb 2009 Market Segment 3 Message 3 Feature 2 Start May 2009

For demand creation, start with target that is motivated to try and buy solution as is

Synchronize targets with sales and product teams

Strategy: Dave’s Recommended Channels Dave McClure has some great slides on acquisition channels worth revisiting. Startup-Marketing.com

Dave’s Other Great Slide on Channels

Projections: Planning Budget Start Spending to Discover and Optimize Start with many small test buys Optimize or cut money losers Later focus most budget on proven ROI campaigns But reserve at least 20% of budget for tests each month. Startup-Marketing.com

Start Spending to Discover and Optimize

Start with many small test buys

Optimize or cut money losers

Later focus most budget on proven ROI campaigns

Projections: Budget For Max ROI Spend Budget for highest realistic positive ROI spend Spend below budget if not enough testing opportunities and scalability in proven channels Scale beyond budget if proven channels can scale beyond current budget During planning, agree with CEO on process for increasing budget and need for flexibility Startup-Marketing.com

Budget for highest realistic positive ROI spend

Spend below budget if not enough testing opportunities and scalability in proven channels

Scale beyond budget if proven channels can scale beyond current budget

Projections: Hire for Faster Testing Hire to increase velocity of tests Hire to fill bottlenecks that slow testing Early marketing roles to consider: Marketing Web Designer Copywriter Marketing Data Analyst Marketing Database Analyst SEM specialist Product Marketing Director Don’t try to hire someone to “figure things out” Startup-Marketing.com

Hire to increase velocity of tests

Hire to fill bottlenecks that slow testing

Early marketing roles to consider:

Marketing Web Designer

Copywriter

Marketing Data Analyst

Marketing Database Analyst

SEM specialist

Product Marketing Director

Projections: User/Sales Growth Build initial user/sales growth projections based on planned budget and metric assumptions. Initial projections are always inaccurate because no historical data to model. Predictable growth begins when 80% of budget focused on proven ROI campaigns Startup-Marketing.com

Build initial user/sales growth projections based on planned budget and metric assumptions.

Initial projections are always inaccurate because no historical data to model.

What to Take Away Discover who needs it and why Track your key metrics early Optimize business economics early Micro test customer acquisition channels Sean Ellis Go To Market Advisor for Startups Email: sean (at) startup-marketing.com Startup-Marketing.com

Discover who needs it and why

Track your key metrics early

Optimize business economics early

Micro test customer acquisition channels