My talk on marketing metrics for pirates from Tw

1. DO Marketing! (It’s Not Evil .) #TwilioCon San Francisco – Sept 2011 #AARRR Dave McClure @DaveMcClure http://www.500startups.com http://500hats.typepad.com http://slideshare.net/dmc500hats AARRR !

3. 500 Startups Seed Fund & Accelerator (180+ companies, 10+countries)

4. [ This Talk ]

6. Platforms 2.0 Search, Social, Mobile

7. What’s a Platform? Successful Platforms have 3 Things: 1) Features 2) Users 3) Money Users . . Money Features Growth Profit Profitable Growth Awesome

10. [ Interesting Shit. ]

11. Read Geoffrey Miller Sex + Evolution + Consumer Mktg = Awesome Sauce

12. More Great Shit. Psychology + Comics

13. [The Lean Startup] [Startup Metrics 4 Pirates ]

16. Discover Customers (Steve Blank, SteveBlank.com)

17. Iterate , Dammit. (Eric Ries, StartupLessonsLearned.com) LEARN BUILD MEASURE IDEAS CODE DATA

18. Product/Market Fit b4 “Launch” (Sean Ellis, Startup-Marketing.com) Startup-Marketing.com

19. AARRR! : 5-Step Startup Metrics Model Website.com R evenue $$$ Biz Dev Ads, Lead Gen, Subscriptions, ECommerce A CQUISITION SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains R etention Emails & Alerts System Events & Time-based Features Blogs, RSS, News Feeds

22. [ DO Marketing : What Do I Do & WHY?]

27. Example Conversion Metrics (note: *not* actuals… your mileage may vary) Stage Conversion Status Conv. % Est. Value (*not* cost) Acquisition Visitors -> Site/Widget/Landing Page (2+ pages, 10+ sec, 1+ clicks = don’t abandon) 60% $.05 Activation “ Happy” 1 st Visit; Usage/Signup (clicks/time/pages, email/profile reg, feature usage) 15% $.25 Retention Users Come Back; Multiple Visits (1-3x visits/mo; email/feed open rate / CTR) 5% $1 Referral Users Refer Others (cust sat >=8; viral K factor > 1; ) 1% $5 Revenue Users Pay / Generate $$$ (first txn, break-even, target profitability) 2% $50

29. [ Getting 2 PMF ]

32. Better or Different . Funny! Shocking !!! Accepted Not Funny.

33. [ Testing 4 AUX ]

34. Discover Meaning Why Should Users CARE About Your Product? Kathy Sierra: “ Creating Passionate Users ”

36. How 2 Tell if Design is Good?

37. [ Metrics 4 ACQ ]

41. [ What is WINNING? ]

42. # TigerBlood 4 Startups # WINNING

44. [ The Lean Investor ]

49. Appendix

50. Startup Metrics Activation

55. Startup Metrics Retention

61. Startup Metrics Acquisition

67. Startup Metrics Referral

68. Website.com Focus on driving referrals * after * users have a “ happy ” experience; avg score >= 8 out of 10 Referral Acquisition SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains Retention Emails & Alerts System Events & Time-based Features Blogs, RSS, News Feeds

72. Startup Metrics Revenue

73. Website.com Revenue This is the part *you* still have to figure out… (we don ’t know jack about your business) R evenue $$$ Biz Dev Ads, Lead Gen, Subscriptions, ECommerce Acquisition SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains Retention Emails & Alerts System Events & Time-based Features Blogs, RSS, News Feeds

77. 500 Hats Investments (13+ deals, 2004-2008, ~$310K) Results: 1 exit @ $170M (9x) , +3-6 future wins (i hope ;) 2 exits @ $50M, $70M (advisory roles) (acq YHOO) (acq GOOG) (acq INTU)

78. Founders Fund Investments (43 deals, 2009, ~2.9M) Results : 8 raised seed rd $500K+ 1 raised $4M; 3 early exits Results : 6 raised next rd $2M+ 1 raised $12M; 1 early exit fbFund REV (Facebook Incubator) 22 deals ($850K total) ~$40K avg FF Angel LLC 21 deals ($2M total) ~$100K avg

79. [ Don ’t Pitch Me, Bro. ] Seriously : Don ’t. F*#king . Pitch Me. (and don ’t email me either, cuz i won’t read it)