Teaching Objectives • Teams should
be showing real progress by now • Do not give up on the lost souls; most will surprise you in the end • Don’t let them slow down the pace of discovery and customer calls • Make sure teams continue to: – – – – Annotate the business model canvas Update their Discovery Narratives on LaunchPad Central Include diagrams of each part of the hypothesis Acknowledge you’ve been reading their posts (and comment whenever you can) • Focus your main critique on their understand of customer relationships
How? • Ask: “What earned
media activities do you plan to do for your startup? What do you hope to achieve?” • Even though they won’t have time to do real demand creation, they need to grasp the concepts of Get/Keep/Grow, CAC, and LTV • Ensure that their diagrams show funnel and real $s for costs • Ask: “Do you know what your customers read, what trade shows they attend, gurus they follow, and where they turn for new product information?
Common Student Errors • To
most, marketing is an even bigger mystery than sales • Let them know that the funnel is their “magic decoder ring” to marketing • Students often to not understand the difference between customer “acquisition” and customer “activation” for web/mobile startups • Online marketing is important, even if the product and sales channels are physical
Take Away from Udacity Lecture
• Students (and their mentors) should understand: – Revenue model = the strategy the company uses to generate cash from each customer segment • Direct Sales, Licensing, Subscription – Within the revenue model, how do I price the product? • Pricing is a TACTIC • Revenue Model is the STRATEGY – This is not about the income statement, balance sheet and cash flow. Those are operating details that are derived AFTER a proven revenue Model and pricing.
Mentors should emphasize: • •
• • Types of revenue streams Revenue Models Pricing Tactics When appropriate, also: – Physical vs. Web-Mobile Revenue Models – Multi-sided Market Revenue Models