Being Lucky • retention?• knowing something or nothing?
Andrew Chen’s Blog
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
Consumer Market or Niche Market Niche & Consumer High & High ARPU ARPU Niche Consumer Niche & Consumer Low & Low ARPU ARPU Average Revenue Per User
Business Model is a Commodity • EC/flash sales • Dating • Game • Premium subscription
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
Competition • Whatsapp? • Line? • 微信?
Product Re-Position• Don’t compete on features
Nobody buys in
Build Product• Spent 6 Months• Build platform that evolves• Monitor user behaviors
Build Product• 6 months o Android, iPhone, Servers
Build Product• Platform that evolves o Competitive features o Test platform
Build Product• User behaviors o Data analysis
Understand Users?• 台灣網路公司沒有辦法做得大或成功是因為市場 太小?
Data Analysis• Funnel• Actionable metrics• A/B testing• Growth Hacker is the new VP Marketing
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)
Cubie Users• Drawing / have fun o > 50% drawing characters o Text > Drawing > voice > picture• Customization features o others cant see it• People care about privacy o > 5% users change privacy settings o iPhone > android• Instagram o profile• registration funnel o sync is problem
Design?• Iteratively build and test • Ex: Drawing
Tractions• High Growth or High ARPU
Entrepreneurs as MVP• The dirty secret behind the incubator boom
Exceptional Outcome• How sheep-like behavior breeds innovation in Silicon Valley
Exceptional Outcome• Sad to hear … o Business model is everything o Ads is not profitable o In Taiwan, you can’t …
Take Away• Consumer internet• Understand users• Be data-driven• Be exceptional