And loving every goddamn minute. Dave McClure, Master of 500 Hats @ Univ. Edinburgh, Jan 2008 blog: http://500hats.typepad.com/ web: http://www.500hats.com/ slides: http://slideshare.net/dmc500hats/

Agenda Web 2.0 & Startup Metrics A Brief History of Social Networks Facebook & Social Platforms

Web 2.0 & Startup Metrics

A Brief History of Social Networks

Facebook & Social Platforms

Why Be A Web 2.0 Entrepreneur?

10 Essential Elements of a Tasty Web 2.0 Meal Steak : Web Services & APIs – Consume, Remix, Reuse, Emit Sizzle : Rich Client-Side Experience – Ajax, Flash, Air, Silverlight SEO/SEM : Organic & Paid Search Traffic Opportunities Stuff : Blogs, Widgets, RSS, overall online content distribution Send : I hate spam too, but email still works just fine Social : People & Groups, Social Networks, Viral Loops Spicy : Tags, Ratings, [UG]Content= Lower Cost, Higher Quality Stats : Ability to Measure the System & Get Feedback Speed : Ability to Iterate, Release Quickly, & Improve Sell [out] : Lots of Ways to Make $ (Ads, Leads, E-Com, etc)

Steak : Web Services & APIs – Consume, Remix, Reuse, Emit

Sizzle : Rich Client-Side Experience – Ajax, Flash, Air, Silverlight

SEO/SEM : Organic & Paid Search Traffic Opportunities

Stuff : Blogs, Widgets, RSS, overall online content distribution

Send : I hate spam too, but email still works just fine

Social : People & Groups, Social Networks, Viral Loops

Spicy : Tags, Ratings, [UG]Content= Lower Cost, Higher Quality

Stats : Ability to Measure the System & Get Feedback

Speed : Ability to Iterate, Release Quickly, & Improve

Sell [out] : Lots of Ways to Make $ (Ads, Leads, E-Com, etc)

Startup Metrics for Pirates: AARRR! A cquisition : users come to site from various channels A ctivation : users enjoy 1 st visit: " happy ” experience R etention : users come back , visit site multiple times R eferral : users like product enough to refer others R evenue : users conduct some monetization behavior

A cquisition : users come to site from various channels

A ctivation : users enjoy 1 st visit: " happy ” experience

R etention : users come back , visit site multiple times

R eferral : users like product enough to refer others

R evenue : users conduct some monetization behavior

Customer Lifecycle & Conversion Behavior Website.com

Example Conversion Metrics (note: *not* actuals … your mileage may vary.) Category Conversion Status Conv % Est. Value Acquisition Visit Site (or landing page, or external widget) 100% $.01 Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks) 70% $.05 Activation Happy 1 st Visit (views X pages, stays Y sec, Z clicks) 30% $.25 Activation Email/Blog/RSS/Widget Signup (anything that could lead to repeat visit) 5% $1 Activation Acct Signup (includes profile data) 2% $3 Retention Email Open / RSS view -> Clickthru 3% $2 Retention Repeat Visitor (3+ visits in first 30 days) 2% $5 Referral Refer 1+ users who visit site 2% $3 Referral Refer 1+ users who activate 1% $10 Revenue User generates minimum revenue 2% $5 Revenue User generates break-even revenue 1% $25

A Brief History of Social Networks Groups & Email Lists (eGroups/Yahoogroups) Social Networks 1.0 (Ryze, Friendster, Orkut, Tribe) Blogs (Blogger, Typepad, Wordpress) Photos, Audio, Video (Flickr, Podcasts, YouTube) Social Networks 2.0 (LinkedIn, MySpace, Facebook) Feeds & Shared Social Activity (News Feed, Twitter) Apps & Widgets (Slide, RockYou, ClearSpring) Hosted Platforms (Facebook, OpenSocial, Bebo) Vertical Communities (Ning, KickApps) Embedded Apps & Social APIs (Facebook, recently) Social Network Prediction Markets (the future?)

Groups & Email Lists (eGroups/Yahoogroups)

Social Networks 1.0 (Ryze, Friendster, Orkut, Tribe)

Blogs (Blogger, Typepad, Wordpress)

Photos, Audio, Video (Flickr, Podcasts, YouTube)

Social Networks 2.0 (LinkedIn, MySpace, Facebook)

Feeds & Shared Social Activity (News Feed, Twitter)

Apps & Widgets (Slide, RockYou, ClearSpring)

Hosted Platforms (Facebook, OpenSocial, Bebo)

Vertical Communities (Ning, KickApps)

Embedded Apps & Social APIs (Facebook, recently)

Social Network Prediction Markets (the future?)

Facebook, Open Social, & The Social Platform Revolution The Social Graph = Friend Lists Shared Social Activity Stream = Feeds Social Platform & APIs = Apps Will it Continue to Grow? (Yes) Will Others Compete? (Probably) Will it Monetize Better? (Dunno… hope so)

The Social Graph = Friend Lists

Shared Social Activity Stream = Feeds

Social Platform & APIs = Apps

Will it Continue to Grow? (Yes)

Will Others Compete? (Probably)

Will it Monetize Better? (Dunno… hope so)