with Mattan Griffel, CEO of One Month / @mattangriffel
GROWTH HACKING:
How Startups Grow From
0 To Millions Of Users
Prepa...
PS: I LOVE YOU.
GET YOUR FREE E-MAIL AT…

In 1996 co-workers Sabeer Bhatia and Jack Smith
planned to start a company called JavaSoft
BUT THEY WERE AFRAID THEIR
BOSS WOULD CATCH THEM
SO THEY BUILT A
WEB-BASED EMAIL SYSTEM
AND SO HOTMAIL
WAS BORN
THEY
RAISED
$300,000
But Hotmail’s Launch
Was Unimpressive
July August
Their growth strategy was to buy
billboards and radio ads
BUT SOMEONE
HAD A BETTER IDEA
PUT ‘PS: I LOVE YOU. GET
YOUR FREE E-MAIL AT
HOTMAIL’ AT THE BOTTOM
OF EACH E-MAIL.
Within Hours, Hotmail’s Growth
Took The Shape Of A Classic
Hockey Stick Curve
July August
THEY STARTED AVERAGING
3,000 NEW USERS A DAY
July August
WITHIN 6 MONTHS, THEY WERE
UP TO 1 MILLION USERS
July September November
July September November January
FIVE WEEKS LATER, THEY HIT
THE 2 MILLION USER MARK
IN ONE CASE,
BHATIA SENT
ONE EMAIL TO
A FRIEND IN INDIA
WITHIN 3 WEEKS
HOTMAIL HAD
300,000 USERS
IN INDIA
July September November January March May July September November
WHEN THEY SOLD TO MICROSOFT 1.5 YEARS AFTER
LAUNCH, HOTM...
July September November January March May July September November
(There were only 70 million internet users at the time)
...
THIS STORY
IS NOT AN ANOMALY
WHY DID THESE COMPANIES
SUCCEED WHEN EVERYONE
ELSE FAILED?
SO WHAT IS
GROWTH HACKING?
IN 2010, SEAN ELLIS COINED
THE TERM “GROWTH HACKER”
A GROWTH HACKER IS
A PERSON WHOSE TRUE
NORTH IS GROWTH.
“
– SEAN ELLIS, Startup Marketing Blog
IN 2012 ANDREW CHEN
PUBLISHED THE BLOG
POST: 



"GROWTH HACKER IS
THE NEW VP MARKETING”
IN IT, HE REVERSE-ENGINEERS
AN AIRBNB “POST TO CRAIGSLIST” FEATURE
“
– ANDREW CHEN, andrewchen.co
GROWTH HACKERS ARE
A HYBRID OF MARKETER
AND CODER.
GROWTH HACKING IS A
SET OF TACTICS AND BEST
PRACTICES FOR DEALING
WITH USER GROWTH
How do I get more users?
GROWTH HACKING IS A
SET OF TACTICS AND BEST
PRACTICES FOR DEALING
WITH USER GROWTH
How do I get more of my users to be active?
How do I reduce churn?
How do I increase the lifetime value of a user?
How do ...
Viral Growth
ANALYTICS
Landing Page Optimization Copywriting
SEO
Email Marketing
PR Behavioral Economics
Referral
Advertising
Viral Gro...
People want to see growth like this
(This was One Month at Y Combinator Demo Day)
But in reality it looks more like this
Growth will be rocky at first
Over time, trends become more apparent
And variability stabilizes in the long-run
THE STARTUP CURVE
TechCrunch
of Initiation
Wearing Off
of Novelty
Trough of
Sorrow
Releases of
Improvement
Crash of
Ineptit...
#GODEEPER
MOST COMPANIES
ONLY TRACK
THREE THINGS
TRAFFIC
USERS
REVENUE
? ?
GET TRAFFIC GET USERS PROFIT
PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5
THOSE METRICS
AREN’T VERY HELPFUL!
(The magic is what happens in between)
THOSE METRICS
AREN’T VERY HELPFUL!
THE KEY IS TO MAP OUT THE USER
LIFECYCLE FOR YOUR PRODUCT
THE LEAN
MARKETING
FUNNEL
SEO PR
EMAIL
VIRALBLOGS
SEM
CONTESTS
PARTNERSHIPS
Referral
SEO PR
EMAIL
VIRALBLOGS
SEM
CONTESTS
PARTNERSHIPS
1. ACQUISITION
Users come to your site
from various channels
2. ACTIVATION
Users enjoy their first visit
SEO PR
EMAIL
VIRALBLOGS
SEM
CONTESTS
PARTNERSHIPS
3. RETENTION
Users come back
SEO PR
EMAIL
VIRALBLOGS
SEM
CONTESTS
PARTNERSHIPS
4. REFERRAL
Users like the product
enough to refer friends
SEO PR
EMAIL
VIRALBLOGS
SEM
CONTESTS
PARTNERSHIPS
Referral
5. REVENUE
Users do something that
leads you to make money
SEO PR
EMAIL
VIRALBLOGS
SEM
CONTESTS
PARTNERSHIPS
Referral
THE LEAN
MARKETING
FUNNEL
SEO PR
EMAIL
VIRALBLOGS
SEM
CONTESTS
PARTNERSHIPS
Referral
Referral
AKA
“PIRATE
METRICS”
A
A
R
R
R
SEO PR
EMAIL
VIRALBLOGS
SEM
CONTESTS
PARTNERSHIPS
LET’S SEE IT
IN ACTION
YOU HEAR ABOUT QUORA AFTER
YOUR FRIEND POSTS A QUESTION
FROM QUORA ON TWITTERACQUISITION
AFTER READING THE PAGE YOU
DECIDE TO CREATE AN ACCOUNTACQUISITION
ACTIVATION
… A FEW DAYS GO BY
ACQUISITION
ACTIVATION
YOU GET A WEEKLY DIGEST
EMAIL WITH QUESTIONS AND
LINKS BACK TO THE SITEACQUISITION
ACTIVATION
RETENTION
ONCE YOU’RE BACK, QUORA
ENCOURAGES YOU TO READ
RELATED QUESTIONSACQUISITION
ACTIVATION
RETENTION
AND SHARE INTERESTING
QUESTIONS THROUGH TWITTER &
FACEBOOKACQUISITION
ACTIVATION
RETENTION
REFERRAL
QUORA DOESN’T
CURRENTLY MAKE MONEYACQUISITION
ACTIVATION
REVENUE
RETENTION
REFERRAL
EACH STEP OF THE
LMF CORRESPONDS
TO A USER STATE
To figure out how to move users from one state to the next.
GROWTH HACKER’S JOB:
CREATES AN ACCOUNT VISITS AGAIN LATER
???
CONVERSION RATE:
# OF PEOPLE WHO DO
SOMETHING
# OF PEOPLE
WHO COULD HAVE
YOU NEED TO MEASURE
CONVERSIONS AT EACH STEP
Acquisition Activation Retention Revenue
1000
100
30 9
10%
30%
30%
IDENTIFYING THE BOTTLENECK
At first your numbers will be really bad
Acquisition Activation Retention Revenue
1000
10
2 0
1...
Acquisition Activation Retention Revenue
1000
100
2 0
10%
18%
0%
IDENTIFYING THE BOTTLENECK
GROWTH HACKERS
IDENTIFY TACTICS &
BEST PRACTICES
MINIMAL LANDING PAGES
TO CONVERT BETTER
IDENTIFY COMPANIES THAT FOCUS ON OPTIMIZING
AND TRY TO LEARN FROM THEM
NOT EVERY GROWTH
HACK WILL WORK FOR
YOUR COMPANY
GROWTH HACKERS
EXPERIMENT A LOT
HOW DO YOU RUN
A PROPER EXPERIMENT?
DIVIDE USERS INTO
CONTROL AND TEST GROUPS
DIVIDE USERS INTO
CONTROL AND TEST GROUPS
CONTROL TEST
Run your change on the test group and measure
the difference between the two groups
CONTROL TEST
THIS IS CALLED AN
A/B TEST
SUCCESSFUL
A/B TESTING
LET’S SEE IT
IN ACTION
Original Design
#1 ORIGINAL
Highrise wanted to test out different
homepages to see if they could
increase account signups
So they created a “long-form”
sales letter page
#2 LONG-FORM
Long-form Design
SO THEY RAN AN A/B TEST
Long-form Design
vs.
Original Design
CAN YOU GUESS THE RESULTS?
Long-form Design
vs.
Original Design
WINNER!
Long-form Design
vs.
Original Design
THE LONG-FORM DESIGN
SAW A 37.5% INCREASE IN
ACCOUNT SIGN-UPS
Then they created a personal
testimonial page
#3 PERSONAL
Person Design
AND RAN ANOTHER A/B TEST
Person Design
vs.
Original Design
Person Design
vs.
Original Design
CAN YOU GUESS THE RESULTS?
WINNER!
Person Design
vs.
Original Design
THE PERSON-TESTIMONIAL
DESIGN HAD A 102.5% INCREASE
IN ACCOUNT SIGN-UPS
BUT THE PERSON DESIGN WAS SHORTER
AND HAD MUCH LESS INFORMATION
Person Design
vs.
Long-form Design
So they added more
information to the bottom
LONG-FORM
+ PERSON
Long-form +
Person Design
AND RAN ANOTHER A/B TEST
Long-form + Person
Design
vs.
Person Design
Long-form + Person
Design
vs.
Person Design
WHAT DO YOU THINK?
Long-form + Person
Design
vs.
Person Design
THE COMBINATION PERFORMED
22.7% WORSE THAN THE
ORIGINAL HOMEPAGE
THE COMBINATION PERFORMED
22.7% WORSE THAN THE
ORIGINAL HOMEPAGE
BUT THAT’S
NOT WHERE
THE TESTING
ENDS…
From Dave McClure’s Startup Metrics for Pirates
UNBOUNCE AND OPTIMIZELY ARE AMAZING TOOLS FOR
EASILY CREATING AND TESTING LANDING PAGES
UNBOUNCE IS GREAT FOR
CREATING NEW SITES
OPTIMIZELY IS GREAT IF YOU
ALREADY HAVE A SITE
YOU OFTEN NEED TO
PERFORM 15-20 TESTS IN
ORDER TO FIND 1-2 MAJOR
IMPROVEMENTS
NOTABLE GROWTH HACKS
BrandYourself kept their Mashable
article trending for 2 days by
promoting it on StumbleUpon
ACQUISITION
OKCupid has a “tour guide” that
interacts with you during the signup
process
ACTIVATION
Groupon has two different pages
for Google vs. Direct traffic
ACTIVATION
* Footers are good for SEO but reduce conversions
Path texts the app to your phone
ACTIVATION
Dropbox sends an email when a
user signs up but never installs the
software
ACTIVATION
Eventbrite sends emails if you’ve
been inactive for too long
RETENTION
Path has your friends do it instead!
RETENTION
Facebook integration makes it really
easy to get people to share
REFERRAL
Dropbox, LivingSocial, and Appsumo
know incentivization works well too
REFERRAL
Quora forces people to sign up before
they can read answers
REFERRAL
GROWTH HACKING
RESOURCES
WATCH DAVE MCCLURE’S
STARTUP METRICS FOR
PIRATES
QUORA HAS A BOARD ON GROWTH HACKING
SEAN ELLIS CREATED A SITE CALLED
GROWTHHACKERS.COM
CHECK OUT MY 29 GROWTH
HACKING QUICK WINS ON
SLIDESHARE
FINALLY
Get my FREE Growth
Hacking Crash Course
Visit http://get.onemonth.com/
growth-hacking-crash-course
Growth Hacking
Growth Hacking
Growth Hacking
Growth Hacking
Growth Hacking
Growth Hacking
Growth Hacking
Growth Hacking
Growth Hacking
Growth Hacking
Growth Hacking
Growth Hacking
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Growth Hacking

  1. 1. with Mattan Griffel, CEO of One Month / @mattangriffel GROWTH HACKING: How Startups Grow From 0 To Millions Of Users Prepared for
  2. 2. PS: I LOVE YOU. GET YOUR FREE E-MAIL AT…

  3. 3. In 1996 co-workers Sabeer Bhatia and Jack Smith planned to start a company called JavaSoft
  4. 4. BUT THEY WERE AFRAID THEIR BOSS WOULD CATCH THEM
  5. 5. SO THEY BUILT A WEB-BASED EMAIL SYSTEM
  6. 6. AND SO HOTMAIL WAS BORN
  7. 7. THEY RAISED $300,000
  8. 8. But Hotmail’s Launch Was Unimpressive July August
  9. 9. Their growth strategy was to buy billboards and radio ads
  10. 10. BUT SOMEONE HAD A BETTER IDEA
  11. 11. PUT ‘PS: I LOVE YOU. GET YOUR FREE E-MAIL AT HOTMAIL’ AT THE BOTTOM OF EACH E-MAIL.
  12. 12. Within Hours, Hotmail’s Growth Took The Shape Of A Classic Hockey Stick Curve July August
  13. 13. THEY STARTED AVERAGING 3,000 NEW USERS A DAY July August
  14. 14. WITHIN 6 MONTHS, THEY WERE UP TO 1 MILLION USERS July September November
  15. 15. July September November January FIVE WEEKS LATER, THEY HIT THE 2 MILLION USER MARK
  16. 16. IN ONE CASE, BHATIA SENT ONE EMAIL TO A FRIEND IN INDIA
  17. 17. WITHIN 3 WEEKS HOTMAIL HAD 300,000 USERS IN INDIA
  18. 18. July September November January March May July September November WHEN THEY SOLD TO MICROSOFT 1.5 YEARS AFTER LAUNCH, HOTMAIL HAD 8.5 MILLION USERS
  19. 19. July September November January March May July September November (There were only 70 million internet users at the time) WHEN THEY SOLD TO MICROSOFT 1.5 YEARS AFTER LAUNCH, HOTMAIL HAD 8.5 MILLION USERS
  20. 20. THIS STORY IS NOT AN ANOMALY
  21. 21. WHY DID THESE COMPANIES SUCCEED WHEN EVERYONE ELSE FAILED?
  22. 22. SO WHAT IS GROWTH HACKING?
  23. 23. IN 2010, SEAN ELLIS COINED THE TERM “GROWTH HACKER”
  24. 24. A GROWTH HACKER IS A PERSON WHOSE TRUE NORTH IS GROWTH. “ – SEAN ELLIS, Startup Marketing Blog
  25. 25. IN 2012 ANDREW CHEN PUBLISHED THE BLOG POST: 
 
 "GROWTH HACKER IS THE NEW VP MARKETING”
  26. 26. IN IT, HE REVERSE-ENGINEERS AN AIRBNB “POST TO CRAIGSLIST” FEATURE
  27. 27. “ – ANDREW CHEN, andrewchen.co GROWTH HACKERS ARE A HYBRID OF MARKETER AND CODER.
  28. 28. GROWTH HACKING IS A SET OF TACTICS AND BEST PRACTICES FOR DEALING WITH USER GROWTH
  29. 29. How do I get more users? GROWTH HACKING IS A SET OF TACTICS AND BEST PRACTICES FOR DEALING WITH USER GROWTH
  30. 30. How do I get more of my users to be active? How do I reduce churn? How do I increase the lifetime value of a user? How do I measure the effectiveness of new features? What is our AHA moment? How do I get more users? GROWTH HACKING IS A SET OF TACTICS AND BEST PRACTICES FOR DEALING WITH USER GROWTH
  31. 31. Viral Growth
  32. 32. ANALYTICS Landing Page Optimization Copywriting SEO Email Marketing PR Behavioral Economics Referral Advertising Viral Growth
  33. 33. People want to see growth like this
  34. 34. (This was One Month at Y Combinator Demo Day)
  35. 35. But in reality it looks more like this
  36. 36. Growth will be rocky at first
  37. 37. Over time, trends become more apparent
  38. 38. And variability stabilizes in the long-run
  39. 39. THE STARTUP CURVE TechCrunch of Initiation Wearing Off of Novelty Trough of Sorrow Releases of Improvement Crash of Ineptitude Wiggles of False Hope The Promised Land!
  40. 40. #GODEEPER
  41. 41. MOST COMPANIES ONLY TRACK THREE THINGS TRAFFIC USERS REVENUE
  42. 42. ? ? GET TRAFFIC GET USERS PROFIT PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5
  43. 43. THOSE METRICS AREN’T VERY HELPFUL!
  44. 44. (The magic is what happens in between) THOSE METRICS AREN’T VERY HELPFUL!
  45. 45. THE KEY IS TO MAP OUT THE USER LIFECYCLE FOR YOUR PRODUCT
  46. 46. THE LEAN MARKETING FUNNEL SEO PR EMAIL VIRALBLOGS SEM CONTESTS PARTNERSHIPS Referral
  47. 47. SEO PR EMAIL VIRALBLOGS SEM CONTESTS PARTNERSHIPS 1. ACQUISITION Users come to your site from various channels
  48. 48. 2. ACTIVATION Users enjoy their first visit SEO PR EMAIL VIRALBLOGS SEM CONTESTS PARTNERSHIPS
  49. 49. 3. RETENTION Users come back SEO PR EMAIL VIRALBLOGS SEM CONTESTS PARTNERSHIPS
  50. 50. 4. REFERRAL Users like the product enough to refer friends SEO PR EMAIL VIRALBLOGS SEM CONTESTS PARTNERSHIPS Referral
  51. 51. 5. REVENUE Users do something that leads you to make money SEO PR EMAIL VIRALBLOGS SEM CONTESTS PARTNERSHIPS Referral
  52. 52. THE LEAN MARKETING FUNNEL SEO PR EMAIL VIRALBLOGS SEM CONTESTS PARTNERSHIPS Referral
  53. 53. Referral AKA “PIRATE METRICS” A A R R R SEO PR EMAIL VIRALBLOGS SEM CONTESTS PARTNERSHIPS
  54. 54. LET’S SEE IT IN ACTION
  55. 55. YOU HEAR ABOUT QUORA AFTER YOUR FRIEND POSTS A QUESTION FROM QUORA ON TWITTERACQUISITION
  56. 56. AFTER READING THE PAGE YOU DECIDE TO CREATE AN ACCOUNTACQUISITION ACTIVATION
  57. 57. … A FEW DAYS GO BY ACQUISITION ACTIVATION
  58. 58. YOU GET A WEEKLY DIGEST EMAIL WITH QUESTIONS AND LINKS BACK TO THE SITEACQUISITION ACTIVATION RETENTION
  59. 59. ONCE YOU’RE BACK, QUORA ENCOURAGES YOU TO READ RELATED QUESTIONSACQUISITION ACTIVATION RETENTION
  60. 60. AND SHARE INTERESTING QUESTIONS THROUGH TWITTER & FACEBOOKACQUISITION ACTIVATION RETENTION REFERRAL
  61. 61. QUORA DOESN’T CURRENTLY MAKE MONEYACQUISITION ACTIVATION REVENUE RETENTION REFERRAL
  62. 62. EACH STEP OF THE LMF CORRESPONDS TO A USER STATE
  63. 63. To figure out how to move users from one state to the next. GROWTH HACKER’S JOB: CREATES AN ACCOUNT VISITS AGAIN LATER ???
  64. 64. CONVERSION RATE: # OF PEOPLE WHO DO SOMETHING # OF PEOPLE WHO COULD HAVE
  65. 65. YOU NEED TO MEASURE CONVERSIONS AT EACH STEP Acquisition Activation Retention Revenue 1000 100 30 9 10% 30% 30%
  66. 66. IDENTIFYING THE BOTTLENECK At first your numbers will be really bad Acquisition Activation Retention Revenue 1000 10 2 0 1% 18% 0% BOTTLENECK
  67. 67. Acquisition Activation Retention Revenue 1000 100 2 0 10% 18% 0% IDENTIFYING THE BOTTLENECK
  68. 68. GROWTH HACKERS IDENTIFY TACTICS & BEST PRACTICES
  69. 69. MINIMAL LANDING PAGES TO CONVERT BETTER
  70. 70. IDENTIFY COMPANIES THAT FOCUS ON OPTIMIZING AND TRY TO LEARN FROM THEM
  71. 71. NOT EVERY GROWTH HACK WILL WORK FOR YOUR COMPANY
  72. 72. GROWTH HACKERS EXPERIMENT A LOT
  73. 73. HOW DO YOU RUN A PROPER EXPERIMENT?
  74. 74. DIVIDE USERS INTO CONTROL AND TEST GROUPS
  75. 75. DIVIDE USERS INTO CONTROL AND TEST GROUPS
  76. 76. CONTROL TEST
  77. 77. Run your change on the test group and measure the difference between the two groups CONTROL TEST
  78. 78. THIS IS CALLED AN A/B TEST
  79. 79. SUCCESSFUL A/B TESTING
  80. 80. LET’S SEE IT IN ACTION
  81. 81. Original Design #1 ORIGINAL Highrise wanted to test out different homepages to see if they could increase account signups
  82. 82. So they created a “long-form” sales letter page #2 LONG-FORM Long-form Design
  83. 83. SO THEY RAN AN A/B TEST Long-form Design vs. Original Design
  84. 84. CAN YOU GUESS THE RESULTS? Long-form Design vs. Original Design
  85. 85. WINNER! Long-form Design vs. Original Design
  86. 86. THE LONG-FORM DESIGN SAW A 37.5% INCREASE IN ACCOUNT SIGN-UPS
  87. 87. Then they created a personal testimonial page #3 PERSONAL Person Design
  88. 88. AND RAN ANOTHER A/B TEST Person Design vs. Original Design
  89. 89. Person Design vs. Original Design CAN YOU GUESS THE RESULTS?
  90. 90. WINNER! Person Design vs. Original Design
  91. 91. THE PERSON-TESTIMONIAL DESIGN HAD A 102.5% INCREASE IN ACCOUNT SIGN-UPS
  92. 92. BUT THE PERSON DESIGN WAS SHORTER AND HAD MUCH LESS INFORMATION Person Design vs. Long-form Design
  93. 93. So they added more information to the bottom LONG-FORM + PERSON Long-form + Person Design
  94. 94. AND RAN ANOTHER A/B TEST Long-form + Person Design vs. Person Design
  95. 95. Long-form + Person Design vs. Person Design WHAT DO YOU THINK?
  96. 96. Long-form + Person Design vs. Person Design
  97. 97. THE COMBINATION PERFORMED 22.7% WORSE THAN THE ORIGINAL HOMEPAGE
  98. 98. THE COMBINATION PERFORMED 22.7% WORSE THAN THE ORIGINAL HOMEPAGE
  99. 99. BUT THAT’S NOT WHERE THE TESTING ENDS…
  100. 100. From Dave McClure’s Startup Metrics for Pirates
  101. 101. UNBOUNCE AND OPTIMIZELY ARE AMAZING TOOLS FOR EASILY CREATING AND TESTING LANDING PAGES
  102. 102. UNBOUNCE IS GREAT FOR CREATING NEW SITES
  103. 103. OPTIMIZELY IS GREAT IF YOU ALREADY HAVE A SITE
  104. 104. YOU OFTEN NEED TO PERFORM 15-20 TESTS IN ORDER TO FIND 1-2 MAJOR IMPROVEMENTS
  105. 105. NOTABLE GROWTH HACKS
  106. 106. BrandYourself kept their Mashable article trending for 2 days by promoting it on StumbleUpon ACQUISITION
  107. 107. OKCupid has a “tour guide” that interacts with you during the signup process ACTIVATION
  108. 108. Groupon has two different pages for Google vs. Direct traffic ACTIVATION * Footers are good for SEO but reduce conversions
  109. 109. Path texts the app to your phone ACTIVATION
  110. 110. Dropbox sends an email when a user signs up but never installs the software ACTIVATION
  111. 111. Eventbrite sends emails if you’ve been inactive for too long RETENTION
  112. 112. Path has your friends do it instead! RETENTION
  113. 113. Facebook integration makes it really easy to get people to share REFERRAL
  114. 114. Dropbox, LivingSocial, and Appsumo know incentivization works well too REFERRAL
  115. 115. Quora forces people to sign up before they can read answers REFERRAL
  116. 116. GROWTH HACKING RESOURCES
  117. 117. WATCH DAVE MCCLURE’S STARTUP METRICS FOR PIRATES
  118. 118. QUORA HAS A BOARD ON GROWTH HACKING
  119. 119. SEAN ELLIS CREATED A SITE CALLED GROWTHHACKERS.COM
  120. 120. CHECK OUT MY 29 GROWTH HACKING QUICK WINS ON SLIDESHARE
  121. 121. FINALLY Get my FREE Growth Hacking Crash Course Visit http://get.onemonth.com/ growth-hacking-crash-course
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