[500DISTRO] Shake, Mix, Stir, KABAM! How One Startup Grew from $0 to $360MM in 4 Years

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[500DISTRO] Shake, Mix, Stir, KABAM! How One Startup Grew from $0 to $360MM in 4 Years

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[500DISTRO] Shake, Mix, Stir, KABAM! How One Startup Grew from $0 to $360MM in 4 Years

  1. 1. $0 TO $360MM IN 4 YEARS FLAT HOLLY LIU, CO-FOUNDER & CHIEF OF STAFF AT KABAM @HollyHLiu
  2. 2. @HollyHLiu
  3. 3. @HollyHLiu
  4. 4. @HollyHLiu
  5. 5. @HollyHLiu $360 MM $180 MM $30 MM $0 2010 2011 2012 20132009 $360 MM
  6. 6. @HollyHLiu
  7. 7. @HollyHLiu
  8. 8. @HollyHLiu
  9. 9. @HollyHLiu Non Scalable Growth Methods • Forum / Group Posting • Contests • Blog Posts • Friends and family
  10. 10. @HollyHLiu Important because… • Product-market fit • Interact directly with customers
  11. 11. @HollyHLiu Nail It. Then Scale It.
  12. 12. @HollyHLiu
  13. 13. @HollyHLiu 5-7% weekly http://www.paulgraham.com/growth.html#f6n
  14. 14. @HollyHLiu Scalable Growth Methods paid acquisition sales SEO virality pipeline + team BUYBUILD PARTNER
  15. 15. @HollyHLiu Why? • Feedback Loops • Easily repeatable – create a playbook • Do once and get massive audience
  16. 16. @HollyHLiu Scalable Growth Methods paid acquisition sales BUY SEO virality BUILD pipeline + team PARTNER
  17. 17. @HollyHLiu Build
  18. 18. @HollyHLiu Focus Areas • Acquisition • Retention • Engagement • Monetization
  19. 19. @HollyHLiu Business Model • Advertising Business Model = Large audience INSTALLS conver sions invites clicks
  20. 20. @HollyHLiu Build
  21. 21. @HollyHLiu Framework • Business Model: Advertising • Focus: Acquisition • Metrics:
  22. 22. @HollyHLiu Metrics • Click-thru’s (link tracking) • Installs • Invites Sent • Conversions • DAU’s (Daily Active Users)
  23. 23. @HollyHLiu Scalable Growth Methods SEO virality BUILD
  24. 24. @HollyHLiu BUY
  25. 25. @HollyHLiu 3 Things • Market Opportunity • Team Capabilities • Passion Points
  26. 26. @HollyHLiu Free-to-play Freemium Microtransaction Business Model
  27. 27. @HollyHLiu
  28. 28. @HollyHLiu Framework • Business Model: Free to Play (freemium) • Focus: Retention and Monetization • Metrics:
  29. 29. @HollyHLiu Metrics • D1 Retention • D7 Retention • ARPU • ARPPU • LTV
  30. 30. @HollyHLiu LTV (Average Order Value) * (Number of Repeat Sales) * (Average Retention Time) $10 * 12 months * 3 years = $360
  31. 31. @HollyHLiu LTV - Starbucks (Simple LTV) * (Custom LTV) * (Traditional LTV) Simple LTV = 52(a) * t Custom LTV = t(52 * s * c * p) Traditional LTV =m(r ÷ (1+i-r)) http://blog.kissmetrics.com/how-to-calculate-lifetime-value/?wide=1
  32. 32. @HollyHLiu Success Cost of Customer Acquisition < Customer Lifetime Value
  33. 33. @HollyHLiu Scalable Growth Methods paid acquisition sales BUY
  34. 34. @HollyHLiu PARTNER
  35. 35. @HollyHLiu content platform
  36. 36. @HollyHLiu Game Plan • Partner – Content – Platform – Applications
  37. 37. @HollyHLiu Content
  38. 38. @HollyHLiu Platform
  39. 39. @HollyHLiu Applications
  40. 40. @HollyHLiu Metrics • Organic Traffic • Tagging • Revenue associated with organics
  41. 41. @HollyHLiu Scalable Growth Methods paid acquisition sales SEO virality pipeline + team BUYBUILD PARTNER
  42. 42. @HollyHLiu

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