10 Million in 10 Weeks What Stanford Learned Building Facebook Apps (Stanford CS377W, Fall 2007) Dave McClure Digital Leadership Summit 5/13/08

Master of 500 Hats? Developer Entrepreneur Ultimate Frisbee Player PayPal Mafia Fan of Microfinance Startup Advisor / Angel Internet Marketing Tech Blogger Conference Organizer Social Network Addict Stanford Lecturer Startup Metrics

Developer

Entrepreneur

Ultimate Frisbee Player

PayPal Mafia

Fan of Microfinance

Startup Advisor / Angel

Internet Marketing

Tech Blogger

Conference Organizer

Social Network Addict

Stanford Lecturer

Startup Metrics

A Stanford Class on Facebook?!? (who let you guys escape from the funny farm?)

In The Beginning… (Summer 2007) BJ & Dave had lunch at O’Reilly Foo Camp Brainstormed teaching a new Stanford course about applying metrics to app design, product mgmt & mktg Facebook Platform had conveniently just launched “ Hey: why don’t we use Facebook as a ‘petri dish’ for the lab work, and see what students come up with? ... D

BJ & Dave had lunch at O’Reilly Foo Camp

Brainstormed teaching a new Stanford course about applying metrics to app design, product mgmt & mktg

Facebook Platform had conveniently just launched

“ Hey: why don’t we use Facebook as a ‘petri dish’ for the lab work, and see what students come up with?

...

D

Curriculum (Alpha Version) 3 Apps (!) 1. Virality 2. Engagement 3. Education-focused Hoping to leverage . . . Huge reading list Metrics-based grading Psychology of technology Expecting 20-40 students... D

Hoping to leverage . . .

Huge reading list

Metrics-based grading

Psychology of technology

...120 showed up R

...So we scared some students off. B

7 person teaching team (2 instructors, 3 TAs, 2 coaches) 75 students (25 teams of 3) Over 50 apps created B

Team Effort Stanford University 2 Instructors : BJ Fogg & Dave McClure 3 Student TAs : Dan, Rob, Greg 2 Team Coaches : Yee (Slide), Jia (RockYou) Industry Support : Facebook, Google, MySpace, Joyent, Amazon, SocialMedia, etc Outside Speakers : platforms, app developers, startups, angels, VCs, Stanford alumni Press : WSJ, NYT, Fortune, SF Chronicle, San Jose Mercury, TechCrunch, VentureBeat, GigaOm, etc Community Support & Cheerleading

Stanford University

2 Instructors : BJ Fogg & Dave McClure

3 Student TAs : Dan, Rob, Greg

2 Team Coaches : Yee (Slide), Jia (RockYou)

Industry Support : Facebook, Google, MySpace, Joyent, Amazon, SocialMedia, etc

Outside Speakers : platforms, app developers, startups, angels, VCs, Stanford alumni

Press : WSJ, NYT, Fortune, SF Chronicle, San Jose Mercury, TechCrunch, VentureBeat, GigaOm, etc

Community Support & Cheerleading

B

D

Every class was exciting and surprising D

Students drove us forward B

Students come together outside of class... D

So, What Happened?

Initial Success!!! R

Success Stories R

B

10 Million in 10 Weeks Total Installed Users: 20M+ 5 apps @ 1M+ users 10 apps @ 100k users 20 apps @ 5k users Total Daily Active Users (DAU): 925k 6 apps with ~ 100k DAU 10 apps with > 10k DAU 19 apps with > 500 DAU 5 Apps in Facebook Top 100 Top Apps (according to Adonomics): ~ $10M B

10 Million in 10 Weeks Total Installed Users: 20M+

5 apps @ 1M+ users

10 apps @ 100k users

20 apps @ 5k users

Total Daily Active Users (DAU): 925k 6 apps with ~ 100k DAU 10 apps with > 10k DAU 19 apps with > 500 DAU 5 Apps in Facebook Top 100 Top Apps (according to Adonomics): ~ $10M

BayCHI Student Presentation B

Final Expo in December 2007 500+ people show up R

More Successes R

Aftermath $500K - $1M+ revenue generated in ~6 months 5 Commercial projects 4 Stanford dropouts 3 companies formed 2 companies acquired 1 startup funded More job offers than students can handle Teach the class again? D

Aftermath

$500K - $1M+ revenue generated in ~6 months

5 Commercial projects

4 Stanford dropouts

3 companies formed

2 companies acquired

1 startup funded

More job offers than students can handle

Teach the class again?

What Did We Learn?

Learnings from Stanford's FB Course #1. It's never too late to create a winning app When we launched course, over 6000 Facebook apps existed. 10 weeks later, our students had 6 apps in the top 100

#1. It's never too late to create a winning app

When we launched course, over 6000 Facebook apps existed.

10 weeks later, our students had 6 apps in the top 100

Learnings from Stanford's FB Course #2. Simplicity & clarity are key to app success Apps need to be easily understood (value prop) Apps need to be easy to use The wrong direction: Clever names Lots of features

#2. Simplicity & clarity are key to app success

Apps need to be easily understood (value prop)

Apps need to be easy to use

The wrong direction:

Clever names

Lots of features

Learnings from Stanford's FB Course #3. Speed & flexibility in launch & iterations Many crummy trials beat deep thinking Flexibility beats quality Deadly: Getting too attached to one app idea.

#3. Speed & flexibility in launch & iterations

Many crummy trials beat deep thinking

Flexibility beats quality

Deadly: Getting too attached to one app idea.

Learnings from Stanford's FB Course #4. Community cooperation leads to success Students helped others a lot Sharing code, tips, insights . . . all were present in course.

#4. Community cooperation leads to success

Students helped others a lot

Sharing code, tips, insights . . . all were present in course.

Learnings from Stanford's FB Course #5. Individual opinions about app are worthless Don't be swayed by one person's opinion. Just get the app out there and see what happens . . . Despite everyone's supposed "brilliance" . . . Often what seemed like a killer idea didn't work. Sometimes what seemed stupid worked very well.

#5. Individual opinions about app are worthless

Don't be swayed by one person's opinion.

Just get the app out there and see what happens . . .

Despite everyone's supposed "brilliance" . . .

Often what seemed like a killer idea didn't work.

Sometimes what seemed stupid worked very well.

Learnings from Stanford's FB Course #6. Copying success is a cheap/fast way to succeed Novelty isn't the best approach to apps If you're desperate for a win, just copy something that's working Flipside: If your app is doing well, expect imitators.

#6. Copying success is a cheap/fast way to succeed

Novelty isn't the best approach to apps

If you're desperate for a win, just copy something that's working

Flipside: If your app is doing well, expect imitators.

Learnings from Stanford's FB Course #7. Metrics do matter, but today's tools are too weak Of course, instrument your apps to track viral aspects No one offers a winning metrics package (yet) -- not even GA Our experience: Students often had to tweak GA and also create their own metrics tools.

#7. Metrics do matter, but today's tools are too weak

Of course, instrument your apps to track viral aspects

No one offers a winning metrics package (yet) -- not even GA

Our experience: Students often had to tweak GA and also create their own metrics tools.

Learnings from Stanford's FB Course #8. You CAN learn to create a winning app Success with FB apps isn't luck or magic Many Stanford teams succeeded Teams who failed at first later created great apps (like Oregon Trail)

#8. You CAN learn to create a winning app

Success with FB apps isn't luck or magic

Many Stanford teams succeeded

Teams who failed at first later created great apps (like Oregon Trail)

The Future of Social Networks?

Where We’re Headed Next… Multiple Platforms More Social Apps Niche Platforms Better Analytics Social Media Advertising Monetization? Data Portability The Rest of the Web Gets Social Social Commerce?

Multiple Platforms

More Social Apps

Niche Platforms

Better Analytics

Social Media Advertising

Monetization?

Data Portability

The Rest of the Web Gets Social

Social Commerce?

End