10. Hypothesis
• Consumer Market
o Why I doubted Facebook could build a billion
dollar business, and what I learned from being
horribly wrong
• Business model is a commodity
o Why it’s smart for consumer startups to grow first
and make money later
• Product re-position
o Don’t compete on features
11. Consumer Market or Niche Market
Niche & Consumer
High & High
ARPU ARPU
Niche Consumer
Niche & Consumer
Low & Low
ARPU ARPU
Average Revenue Per User
13. Business Model is a Commodity
• EC/flash sales
• Dating
• Game
• Premium subscription
14. Consumer Internet
• “In a world where you can grow a
userbase of 1 billion in a few years,
displaying remnant ads and getting a
$0.25 CPM will do. Or just throw some
freemium model on it, and monetize
1% of them.” ~ Andrew Chen
25. Actionable Metrics vs Vanity Metrics
• Vanity metrics
o Page views
o Downloads
• Actionable metrics
o Benchmark -> Improve
o Usage
o Funnel
• Benefit-driven metrics
o By product, messages send out, invitations, …
(Cubie)
27. Cubie Users
• Drawing / have fun
o > 50% drawing characters
o Text > Drawing > voice > picture
• Customization features
o others can't see it
• People care about privacy
o > 5% users change privacy settings
o iPhone > android
• Instagram
o profile
• registration funnel
o sync is problem