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Biz barcelona 061511 Presentation Transcript

  • 1. Six Ways to Fail at a Startup
    Steve Blank
    www.steveblank.com
    Twitter: @sgblank
  • 2. Six Ways to Fail at a StartupAnd How to Get it Right
    Steve Blank
    www.steveblank.com
    Twitter: @sgblank
  • 3. This Talk is Based On
    Business Model Generation
    Four Steps to the Epiphany
    Lean Startup
  • 4. I Have a Vision
  • 5. I Know What Needs to Be Done
  • 6. Lets Start A Company!
  • 7. Six Ways to Fail
  • 8. #1I Know Who The Customer Is
  • 9. #2I Know Exactly the Product They Need
  • 10. #3I Know the Problem They Have
  • 11. #4We Can Fix It After We Ship It All
  • 12. #5
    All I Need to Do is Execute the Plan
  • 13. #6
    Let’s Use Large Company Tools
  • 14. Product Introduction Model
    Concept/Seed Round
    Product Dev.
    Alpha/Beta Test
    Launch/
    1st Ship
  • 15. Product Introduction Model
    The Leading Cause of Startup Death
    Concept/Seed Round
    Product Dev.
    Alpha/Beta Test
    Launch/
    1st Ship
  • 16. Product Introduction Model:Two Implicit Assumptions
    Customer Problem: known
    Concept/Seed Round
    Product Dev.
    Alpha/Beta Test
    Launch/
    1st Ship
    Product Features: known
  • 17. Tradition – Hire Marketing
    Concept/Seed Round
    Product Dev.
    Alpha/Beta Test
    Launch/
    1st Ship
    - Create Demand
    - Launch Event
    - “Branding”
    - Hire PR Agency
    - Early Buzz
    • Create Marcom
    Materials
    - Create Positioning
    Marketing
  • 18. Tradition – Hire Sales
    Concept/Seed Round
    Product Dev.
    Alpha/Beta Test
    Launch/
    1st Ship
    - Create Demand
    - Launch Event
    - “Branding”
    - Hire PR Agency
    - Early Buzz
    • Create Marcom
    Materials
    - Create Positioning
    Marketing
    • Build Sales Organization
    • 19. Hire Sales VP
    • 20. Hire 1st Sales Staff
    Sales
  • 21. Tradition – Hire Bus Development
    Concept
    Product Dev.
    Alpha/Beta Test
    Launch/
    1st Ship
    - Create Demand
    - Launch Event
    - “Branding”
    - Hire PR Agency
    - Early Buzz
    • Create Marcom
    Materials
    - Create Positioning
    Marketing
    • Build Sales Channel / Distribution
    • 22. Hire Sales VP
    • 23. Pick distribution Channel
    Sales
    Business
    Development
    • Hire First Bus Dev
    • 24. Do deals for FCS
  • Tradition – Hire Engineering
    Concept
    Product Dev.
    Alpha/Beta Test
    Launch/
    1st Ship
    - Create Demand
    - Launch Event
    - “Branding”
    - Hire PR Agency
    - Early Buzz
    • Create Marcom
    Materials
    - Create Positioning
    Marketing
    • Build Sales Channel / Distribution
    • 25. Hire Sales VP
    • 26. Pick distribution Channel
    Sales
    Business
    Development
    • Hire First Bus Dev
    • 27. Do deals for FCS
    Engineering
    • Write MRD
    • 28. Waterfall
    • 29. Q/A
    • 30. Tech Pubs
  • Startups Are Not Smaller Versions of Large Companies
  • 31. A Startup is a temporary organization
  • 32. A Startup is a temporary organization designed to search
  • 33. A Startup is a temporary organization designed to search for a repeatable and scalable business model
  • 34. Startups need their own tools, different from those used in existing companies
  • 35. Startups need their own tools, different from those used in existing companies
  • 36. Startups Are Not Smaller Versions of Large Companies
    Large Companies Execute Known Business Models
  • 37. Startups Are Not Smaller Versions of Large Companies
    Startups Search for Unknown Business Models
  • 38. So Search for a Business Model
  • 39. The Business Model:
    Any company can be described in 9 building blocks
  • 40. CUSTOMER SEGMENTS
    which customers and users are you serving?
    which jobs do they really want to get done?
  • 41. VALUE PROPOSITIONS
    what are you offering them? what is that
    getting done for them? do they care?
  • 42. CHANNELS
    how does each customer segment want to be reached? through which interaction points?
  • 43. CUSTOMER RELATIONSHIPS
    what relationships are you establishing with each segment? personal? automated? acquisitive? retentive?
  • 44. REVENUE STREAMS
    what are customers really willing to pay for? how?
    are you generating transactional or recurring revenues?
  • 45. KEY RESOURCES
    which resources underpin your business model? which assets are essential?
  • 46. KEY ACTIVITIES
    which activities do you need to perform well in your business model? what is crucial?
    37
  • 47. KEY PARTNERS
    which partners and suppliers leverage your model?
    who do you need to rely on?
  • 48. COST STRUCTURE
    what is the resulting cost structure?
    which key elements drive your costs?
  • 49. value proposition
    customer relationships
    key activities
    customer segments
    key partners
    cost structure
    revenue streams
    key
    resources
    channels
    40
    images by JAM
  • 50. sketch out your business model
  • 51. But,Realize They’re Hypotheses
  • 52. But,Realize They’re HypothesesGuesses
  • 53. 9 Guesses
    Guess
    Guess
    Guess
    Guess
    Guess
    Guess
    Guess
    Guess
    Guess
  • 54. How Do Startups Search For A Business Model?
  • 55. There are no facts inside your building
  • 56. There are no facts inside your building
    So Get Outside
  • 57. Customer Development = process to searchBusiness Model Canvas is the ScorecardAgile Engineering is How We Build Startups
  • 58. Customer Development =process to searchBusiness Model Canvas =the ScorecardAgile Engineering is How We Build Startups
    • Farming conventions.
    • 59. Demo, demo, and demo!!
    • 60. Proximity is paramount
    • 61. Technology Design
    • 62. Marketing
    • 63. Demo and customer feedback
    • 64. Research Labs
    • 65. Equipment Manufacturers
    • 66. Distribution Network
    • 67. Service Providers
    • 68. Cost Reduction
    • 69. Remove labor force pains
    • 70. Eliminate bio-waste hazards
    • 71. Organic Farmers
    • 72. Weeding Service Providers
    • 73. Conventional Farmers
    • 74. IP – Patents
    • 75. Video Classifier Files
    • 76. Robust Technology
    • 77. Dealers
    • 78. Direct Service
    • 79. Indirect Service
    • 80. … then Dealers
    • 81. Asset Sale
    • 82. Direct Service with equipment rental
    • 83. … then Asset Sale
    Value-Driven
  • 84. Customer Development is the process used to searchBusiness Model Canvas is the ScorecardAgile Development is How We Build Startups
  • 85. Customer Development
    The founders
    ^
    Get Out of the Building
  • 86. Customer DevelopmentThe Search For the Business Model
    Company
    Building
    CustomerDiscovery
    CustomerValidation
    Customer Creation
    Pivot
  • 87. Customer Discovery
    CustomerDiscovery
    CustomerValidation
    Company
    Building
    CustomerCreation
    Stop selling, start listening
    Test your hypotheses
    Continuous Discovery
    Done by founders
  • 88. Test Hypotheses:
    • Product
    • 89. Market Type
    • 90. Competition
    Turning Hypotheses to Facts
  • 91. Test Hypotheses:
    • Problem
    • 92. Customer
    • 93. User
    • 94. Payer
  • Test Hypotheses:
    • Channel
  • Test Hypotheses:
    • Demand Creation
    Test Hypotheses:
    • Problem
    • 95. Customer
    • 96. User
    • 97. Payer
    Test Hypotheses:
    • Product
    • 98. Market Type
    • 99. Competitive
    Test Hypotheses:
    • Channel
    • 100. (Customer)
    • 101. (Problem)
    Test Hypotheses:
    • Channel
    Test Hypotheses:
    • Pricing Model / Pricing
    Test Hypotheses:
    • Size of Opportunity/Market
    • 102. Validate Business Model
  • Test Hypotheses:
    • Demand Creation
    Test Hypotheses:
    • Problem
    • 103. Customer
    • 104. User
    • 105. Payer
    Agile Development
    Test Hypotheses:
    • Product
    • 106. Market Type
    • 107. Competitive
    Test Hypotheses:
    • Channel
    • 108. (Customer)
    • 109. (Problem)
    Customer Development Team
    Test Hypotheses:
    • Channel
    Test Hypotheses:
    • Pricing Model / Pricing
    Test Hypotheses:
    • Size of Opportunity/Market
    • 110. Validate Business Model
  • The Minimum Viable Product (MVP)
    • Smallest feature set that gets you the most …orders, learning, feedback, failure…
  • The Pivot
    • The heart of Customer Development
    • 111. Iteration without crisis
    • 112. Fast, agile and opportunistic
  • How Does This Really Work?Lean LaunchPad Class
  • 113. How Does This Really Work?Lean LaunchPad Class
    8 Weeks From an Idea to a Business
  • 114. Pivot ExampleRobotic Weeding
    Talked 75 Customers in 8 Weeks
  • 115. Our initial plan
  • 116. 20 interviews, 6 site visits…We got OUR Boots dirty
    Weeding
    Visited farms in Salinas Valley to better understand problem
    Interviewed:
    • Bolthouse Farms, Large Agri-Industry in Bakersfield
    • 117. White Farms, Large Peanut farmer in Georgia
    • 118. REFCO Farms, large grower in Salinas Valley
    • 119. Rincon Farms, large grower in Salinas Valley
    • 120. Small Organic Corn/Soy grower in Nebraska
    • 121. Heirloom Organics, small owner/operator, Santa Cruz Mts
    • 122. Two small organic farmers at farmers market
    • 123. Ag Services of Salinas, Fertilizer applicator
    Mowing
    Interviewed:
    • Golf: Stanford Golf course
    • 124. Parks: Stanford Grounds Supervisor, head of maintenance and lead operator (has crew of 6)
    • 125. Toro dealer (large mower manufacturer)
    • 126. User of back-yard mowing system
    • 127. Maintenance Services for City of Los Altos
    • 128. Colony Landscaping (Mowing service for stadiums)
  • Business Plan Autonomous Vehicles for Mowing & Weeding
    Dealers sell, installs and supports customer
    Co. trains dealers, supports dealers
    - Innovation
    - Customer Education
    - Dealer training
    Mowing
    - Owners of public or commercially used green spaces (e.g. golf courses)
    - Landscaping service provider
    Weeding
    - Farmers with manual weeding operations
    We reduce operating cost
    - Labor reduction
    - Better utilization of assets (eg mow or weed at nights)
    - Improved performance (less rework, food safety)
    - Dealers (Mowing and Ag)
    - Vehicle OEMs (John Deere, Toro, Jacobsen, etc)
    - Research labs
    - Mowing Dealers
    - Ag Dealers
    Engineers on Autonomous vehicles, GPS, path-planning
    Dealer discount
    COGS seek a 50-60% Gross Margin
    Heavy R&D investment
    Asset sale
    Our revenue stream derives from selling the equipment
  • 129. Autonomous vehiclesWEEDING
    Dealers sell, installs and supports customer
    Co. trains dealers, supports dealers
    - Innovation
    - Customer Education
    - Dealer training
    - Low density vegetable growers
    - High density vegetable growers
    - Thinning operations
    - Conventional vegetables
    We reduce operating cost
    - Labor reduction (100 to 1)
    - Reduced risk of contamination
    - Mitigate labor availability concerns
    - Ag Dealers
    - Ag Service providers
    - Research labs
    - Ag Dealers
    - Ag Service providers
    Engineers on Machine Vision
    Two problems:
    - Identification
    - Elimination
    Dealer discount
    COGS seek a 50-60% Gross Margin
    Heavy R&D investment
    Asset sale
    Our revenue stream derives from selling the equipment
  • 130. 1 Week – 1 CarrotBot
    Confidential
  • 131. The Business Plan Canvas Updated
    • Technology Design
    • 132. Marketing
    • 133. Demo and customer feedback
    • 134. Farming conventions.
    • 135. Demo, demo, and demo!!
    • 136. Proximity is paramount
    • 137. Organic Farmers
    • 138. Weeding Service Providers
    • 139. Conventional Farmers
    • 140. Cost Reduction
    • 141. Remove labor force pains
    • 142. Eliminate bio-waste hazards
    • 143. Research Labs
    • 144. Equipment Manufacturers
    • 145. Distribution Network
    • 146. Service Providers
    • 147. IP – Patents
    • 148. Video Classifier Files
    • 149. Robust Technology
    • 150. Dealers
    • 151. Direct Service
    • 152. Indirect Service
    • 153. … then Dealers
    • 154. Asset Sale
    • 155. Direct Service with equipment rental
    • 156. … then Asset Sale
    Value-Driven
  • 157. The Business Plan Canvas Updated
    • Technology Design
    • 158. Marketing
    • 159. Demo and customer feedback
    • 160. Farming conventions.
    • 161. Demo, demo, and demo!!
    • 162. Proximity is paramount
    • 163. Mid/Large Organic Farmers
    • 164. Agricultural corporations
    • 165. Weeding Service Providers
    • 166. Mid/Large Conventional Farmers
    • 167. Cost Reduction
    • 168. Remove labor force pains
    • 169. Eliminate bio-waste hazards
    • 170. Research Labs
    • 171. Equipment Manufacturers
    • 172. Distribution Network
    • 173. Service Providers
    • 174. IP – Patents
    • 175. Video Classifier Files
    • 176. Robust Technology
    • 177. Direct Service
    • 178. Indirect Service
    • 179. … then Dealers
    • 180. Direct Service with equipment rental
    • 181. ($1,500/d; 120d/yr )
    • 182. Low density: $1,500/d
    • 183. High density: $6,000/d
    Value-Driven
  • 184. World Ag Expo interviews:the need is real and wide spread
    10+ interviews at show
    Everyone confirmed the need
    Robocrop, UK based, crude competitor sells for $171 K
    Revenue Stream
    Mid to small growers prefer a service
    Large growers prefer to buy, but OK with service until technology is proven
    Charging for labor cost saved is OK, as we provide other benefits (food safety, labor availability)
  • 185. The Business Plan Canvas Updated
    • Technology Design
    • 186. Marketing
    • 187. Demo and customer feedback
    • 188. Farming conventions.
    • 189. Demo, demo, and demo!!
    • 190. Proximity is paramount
    • 191. Mid/Large Organic Farmers
    • 192. Agricultural corporations
    • 193. Weeding Service Providers
    • 194. Mid/Large Conventional Farmers
    • 195. Research Labs
    • 196. Equipment Manufacturer
    • 197. Distribution Network
    • 198. Service Providers
    • 199. 2 or 3 Key Farms
    • 200. Cost Reduction
    • 201. Remove labor force pains
    • 202. Eliminate bio-waste hazards
    • 203. IP – Patents
    • 204. Video Classifier Files
    • 205. Robust Technology
    • 206. Direct Service
    • 207. Indirect Service
    • 208. … then Dealers
    • 209. Direct Service with equipment rental
    • 210. Low density: $1,500/d
    • 211. High density: $6,000/d
    Value-Driven
    • R&D
    • 212. Bill of Materials
    • 213. Training & Service
    • 214. Sales
  • Autonomous weeding - Final
    Direct
    - Provide high quality service at competitive price
    - Innovation
    - Customer Education
    - Dealer training
    - Low density vegetable growers
    - High density vegetable growers
    - Thinning operations
    - Conventional vegetables
    We reduce operating cost
    - Labor reduction (100 to 1)
    - Reduced risk of contamination
    - Mitigate labor availability concerns
    - Ag Service providers
    - Research Institutes (eg UC Davis, Laser Zentrum Hannover)
    - 3-4 key farms
    Direct
    - Alliance with service providers
    - Eventually sell through dealers
    Engineers on Machine Vision
    Two problems:
    - Identification
    - Elimination
    Costs for service provision
    COGS seek a 50-60% Gross Margin
    Heavy R&D investment
    Service provision
    - Charge by the acre with modifier according to weed density
    - Eventually move to asset sale
  • 215. Thanks
    www.steveblank.com
  • 216. I Write a Blog
    www.steveblank.com
  • 217. Personal Libraries
  • 218. Insight: No more bookshelves
    eBooks+150% YoY ‘10
    Printed Books
    -20% YoY ‘10
  • 219. Version 1.0: Personal Libraries
  • 220. Original Idea: Personal Digital Libraries
    Import, organize and share thousands of digital papers
  • 221. something-something-something.com
    Original idea
    Invincible Business Model: Version 1.0
    SHORT TERMResearchers
    Lawyers
    Scientists
    LONG TERMAvid book readers
    Professionals
    FB/TW posts from users you know
    Company blog, FB, TW, support forums
    Import, organize and share thousands of papers
    Targeted marketing
    Product development
    Constant iteration & testing
    Libraries, Universities, Research Centers
    Bloggers and media targeting customer segment
    Academic Database providers
    Affiliate program
    SEO/SEM/SM
    IE/FF/Chrome App Stores
    Developers
    Marketers
    Affiliate program fees
    Licensing
    Subscription fees
    Ad revenue
    AWS Infrastructure
    SEM
    Eng & Marketing OpEx
  • 222. Here’s What We Did
    Version 1.0: Personal Libraries
  • 223. Got out of the building
  • 224. Got out of the building
    • 100+ Interviews
    Professors, Litigators, IP lawyers, Post-docs, PhD researchers, Engineering Students, Law Students…
  • 225. Got out of the building
    • 100+ Interviews
    • 226. Extensive Surveys
  • Got out of the building
    • 100+ Interviews
    • 227. Extensive Surveys
    • 228. 33,000+ Adwords
  • Got out of the building
    • 100+ Interviews
    • 229. Extensive Surveys
    • 230. 33,000+ Adwords
    • 231. Compete Review
  • Got out of the building
    • 100+ Interviews
    • 232. Extensive Surveys
    • 233. 33,000+ Adwords
    • 234. Compete Review
    • 235. Market Sizing
  • Got out of the building
    • 100+ Interviews
    • 236. Extensive Surveys
    • 237. 33,000+ Adwords
    • 238. Compete Review
    • 239. Market Sizing
    • 240. 50 bloggers
  • Got out of the building
    • 100+ Interviews
    • 241. Extensive Surveys
    • 242. 33,000+ Adwords
    • 243. Compete Review
    • 244. Market Sizing
    • 245. 50 bloggers
    • 246. 6 Social Networks
  • Got out of the building
    • 100+ Interviews
    • 247. Extensive Surveys
    • 248. 33,000+ Adwords
    • 249. Compete Review
    • 250. Market Sizing
    • 251. 50 bloggers
    • 252. 6 Social Networks
    • 253. Usability Tests
  • Got out of the building
    • 100+ Interviews
    • 254. Extensive Surveys
    • 255. 33,000+ Adwords
    • 256. Compete Review
    • 257. Market Sizing
    • 258. 50 bloggers
    • 259. 6 Social Networks
    • 260. Usability Tests
    • 261. Rapid Iteration
  • Here’s What We Found
    Version 1.0: Personal Libraries
  • 262. Here's what we found: Version 1.0
    A great business if we had more users…
    GOOD
    • Subscriptions Rock
  • Here's what we found: Version 1.0
    Shorter pages raise conversions 80%
    GOOD
    • Subscriptions Rock
    • 263. Pipelines Optimize
  • Here's what we found: Version 1.0
    Sites will feature your service
    GOOD
    • Subscriptions Rock
    • 264. Pipelines Optimize
    • 265. The Web Listens
  • Here's what we found: Version 1.0
    GOOD
    • Subscriptions Rock
    • 266. Pipelines Optimize
    • 267. The Web Listens
    BAD
    • Academics = Cheap
    Teaching team saw pattern in our data
  • 268. Run away from this customer as fast as possible.
  • 269. Run away from this customer as fast as possible.
    They don’t want to spend money and will incur infinite support and infinite cost.
  • 270. Here's what we found: Version 1.0
    Working for peanuts, and hitting wild product success leads to economic failure
    GOOD
    • Subscriptions Rock
    • 271. Pipelines Optimize
    • 272. The Web Listens
    BAD
    • Academics = Cheap
    • 273. Negative Margins
  • Here's what we found: Version 1.0
    GOOD
    • Subscriptions Rock
    • 274. Pipelines Optimize
    • 275. The Web Listens
    BAD
    • Academics = Cheap
    • 276. Negative Margins
    • 277. ECM = Boring
    No adjacent pivots worked for the team
  • 278. Version 2.0: Trusted Advice
  • 279. something-something-something.com
    Original idea
    Invincible Business Model: Version 2.0
    Upwardly mobile young professionals making $2-10K of discretionary online purchases a year (excluding travel)
    FB/TW posts from users you know
    Company blog, FB, TW accounts
    Discover online goods recommended by friends at the lowest possible price from trusted vendors
    Developing trusted advice and advisors
    Web marketing
    Affiliate partnerships
    Constant iteration & testing
    Bloggers and Media targeting customer segment
    Retail marketing partners
    IE/FF/Chrome teams
    Affiliate Program Providers
    Affiliate program
    SEO/SEM/SM
    IE/FF/Chrome App Stores
    Developers
    Marketers
    Content Library
    Install base
    Readership base
    Affiliate program fees
    Licensing
    Subscription fees
    Ad revenue
    AWS Infrastructure
    SEM
    Eng & Marketing OpEx
  • 280. New Hypotheses
  • 281. Here’s What We Did
    Version 2.0: Trusted Advice
  • 282. Got out of the building, again
    • 40+ Interviews
  • Got out of the building, again
    • 40+ Interviews
    • 283. Extensive Surveys
  • Got out of the building, again
    • 40+ Interviews
    • 284. Extensive Surveys
    • 285. Landing Page Tests
    Landing pages tested on affluent, career aged professionals, approximately 70/30 male/female, N=800+
  • 286. Got out of the building, again
    • 40+ Interviews
    • 287. Extensive Surveys
    • 288. Landing Page Tests
    • 289. Market Research
  • Got out of the building, again
    • 40+ Interviews
    • 290. Extensive Surveys
    • 291. Landing Page Tests
    • 292. Market Research
    • 293. Compete Research
  • Got out of the building, again
    • 40+ Interviews
    • 294. Extensive Surveys
    • 295. Landing Page Tests
    • 296. Market Research
    • 297. Compete Research
    • 298. Revenue Analysis
  • Got out of the building, again
    • 40+ Interviews
    • 299. Extensive Surveys
    • 300. Landing Page Tests
    • 301. Market Research
    • 302. Compete Research
    • 303. Revenue Analysis
    • 304. Two Prototypes
    Insidely.com
    wantio.com
  • 305. Got out of the building, again
    • 40+ Interviews
    • 306. Extensive Surveys
    • 307. Landing Page Tests
    • 308. Market Research
    • 309. Compete Research
    • 310. Revenue Analysis
    • 311. Two Prototypes
    • 312. Refined Personas
  • Customer Segment: Professional-class consumers shopping frequently online
    Pat the Professional
    Upwardly mobile professional (some Grad Students)
    Salary: $40,000 – 150,000/year
    Finance, Consulting, PR, Marketing
    Follows fashion/technology trends
    Spends $1-15K on discretionary items online
    Purchased online in last 30 days
    Demographics
    • Male/female, aged 18-35
    • 313. Minimum bachelors from expensive school
    Traits:
    • Ideas from blogs & shopping websites
    • 314. Values celebrity trends & friends’ opinions
    • 315. Wants high ticket items at lowest price
    • 316. Event-driven shopper—new release or sale
    Motivation
    • Craves new products
    • 317. Hates tedious work
    • 318. Identifies as influencer among friends
    • 319. Fears being cheated online
    Behavior
    • Spends 5 hour+ monthly hearing about products
    • 320. Shares online and in person about products he loves
    Budget
    • $2-10K+/year in discretionary online purchases
    “The XXX is awesome, I really want one. I know I just bought the YYY, but it’s probably time to upgrade.”
    ~5.9M “Pat the Professionals” in US
    Drawn from top 1/3 of 17.8M frequent online shoppers
    17.8M based on 40.2M Professionals (2008 Census) * 0.762 US Internet Penetration (Nielsen 2010Q1) * 0.58 consumers shopping online in last month (Nielsen 2010Q1)
    Online Recommendation Market Opportunity (conservative strawman #s)
    Assuming 10% share, 5% affiliate fees
    Top Shoppers (~$7B/year spend): ~ $35M/year
    Professional-class frequent shoppers (~$1.8B/year): ~ $9M/year
    Other Professional-class shoppers ($0.7B/year): ~3.5M/year
    Source: US Bureau of Labor Statistics
  • 321. Version 2.0: Trusted Advice
    Top ~6M US Influentials (~$9B/year)
  • 322. something-something-something.com
    Original idea
    Invincible Business Model: Version 2.0
    Upwardly mobile young professionals making $2-10K of discretionary online purchases a year (excluding travel)
    FB/TW posts from users you know
    Company blog, FB, TW accounts
    Discover online goods recommended by friends at the lowest possible price from trusted vendors
    Developing trusted advice and advisors
    Web marketing
    Affiliate partnerships
    Constant iteration & testing
    Bloggers and Media targeting customer segment
    Retail marketing partners
    IE/FF/Chrome teams
    Affiliate Program Providers
    Affiliate program
    SEO/SEM/SM
    IE/FF/Chrome App Stores
    Developers
    Marketers
    Content Library
    Install base
    Readership base
    Affiliate program fees
    Licensing
    Subscription fees
    Ad revenue
    AWS Infrastructure
    SEM
    Eng & Marketing OpEx
  • 323. Here’s What We Found
    Version 2: Trusted Advice
  • 324. Findings on "Trusted Advice"
    GOOD
    • Fast Interest
    Insidely.com
    Trusted advice site for
    Silicon Valley/Stanford MBAs
    Launched 2/15
    425 visitors by 2/28
  • 325. Findings on "Trusted Advice"
    Ranked #6 by Google for “Stanford Admissions Books”
    GOOD
    • Fast Interest
  • Findings on "Trusted Advice"
    GOOD
    • Fast Interest
    • 326. High Conversion
    43% clickthrough
    on Top Admissions Books for Stanford MBAs article
    Compare to 0.5% clickthrough on ads
    ~100x difference
  • 327. Findings on "Trusted Advice"
    Positive results on “Trusted Advice” Shopping Add-in testing
    GOOD
    • Fast Interest
    • 328. High Conversion
    • 329. Needs Addressed
    See videos at http://factnote.com/c/e245
  • 330. Findings on "Trusted Advice"
    Positive results on “Trusted Advice” Shopping Add-in testing
    GOOD
    • Fast Interest
    • 331. High Conversion
    • 332. Needs Addressed
    Super easy to install and use.
    I really did enjoy it! 
    Great idea! I will keep the extension installed because I do think this is practical!
    I could see myself using this regularly
  • 333. Findings on "Trusted Advice"
    Some negative results on “Trusted Advice” Shopping Add-in testing
    GOOD
    • Fast Interest
    • 334. High Conversion
    • 335. Needs Addressed
    BAD
    • Missing Features
    See videos at http://factnote.com/c/e245
  • 336. Findings on "Trusted Advice"
    Some negative results on “Trusted Advice” Shopping Add-in testing
    GOOD
    • Fast Interest
    • 337. High Conversion
    • 338. Needs Addressed
    BAD
    • Missing Features
    I was a little frustrated when it didn’t find the item I was looking for
    I can find more thorough price comparisons elsewhere…
    I usually don’t shop in Chrome, so that’s an inconvenience.
  • 339. Findings on "Trusted Advice"
    MBA Exchange spams us out of Google
    GOOD
    • Fast Interest
    • 340. High Conversion
    • 341. Needs Addressed
    BAD
    • Missing Features
    • 342. SEO Battle
  • Here’s Where We Ended Up
    Version 2.1: Trusted Advice
  • 343. The adventure continuesTrusted Advice 2.0
    Protection against SEO-spammers
    Next Experiments:
    • Trusted Lead Gen
    • 344. Trusted Advice website powered by Shopping Add-in
  • something-something-something.com
    Original idea
    Invincible Business Model: Version 3.0
    PAT THE PROFESSIONALUpwardly mobile young professionals making $2-10K of discretionary online purchases a year (excluding travel)
    FB/TW posts from users you know
    Company blog, FB, TW accounts
    TRUSTED ADVICE Discover online goods recommended by friends at the lowest possible price from trusted vendors
    Foil advertorial spammers polluting the Interweb with toxic pseudo-content
    Developing trusted advice and advisors
    Web marketing
    Affiliate partnerships
    Constant iteration & testing
    Bloggers and Media targeting customer segment
    Retail marketing partners
    IE/FF/Chrome teams
    Affiliate Program Providers
    Affiliate program
    SEO/SEM/SM
    IE/FF/Chrome App Stores
    Developers
    Marketers
    Content Library
    Install base
    Readership base
    Affiliate program fees
    Licensing
    Subscription fees
    Ad revenue
    AWS Infrastructure
    SEM
    Eng & Marketing OpEx
  • 345. What We Learned
    • Potential for disruption abounds
  • What We Learned
    • Potential for disruption abounds
    • 346. Life is short, focus on big markets
  • What We Learned
    • Potential for disruption abounds
    • 347. Life is short, focus on big markets
    • 348. All we need is to be relentless
  • Thanks
    www.steveblank.com
  • 349. I Write a Blog
    www.steveblank.com
  • 350. Carpe Diem
    www.steveblank.com