Hopelessly Addicted to Web 2.0, Social Networks, & Facebook
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Hopelessly Addicted to Web 2.0, Social Networks, & Facebook

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A brief history of Web 2.0 & Social Networks (from talk @ Univ. Edinburgh, Jan 2008)

A brief history of Web 2.0 & Social Networks (from talk @ Univ. Edinburgh, Jan 2008)

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  • 1. 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/
  • 2. Agenda
    • Web 2.0 & Startup Metrics
    • A Brief History of Social Networks
    • Facebook & Social Platforms
  • 3. Why Be A Web 2.0 Entrepreneur?
  • 4. 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)
  • 5. 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
  • 6. Customer Lifecycle & Conversion Behavior Website.com
  • 7. 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
  • 8. 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?)
  • 9. 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)