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WORKSHOP: TRACTION
Agenda
• Intro
• The Bullseye Framework
• Traction Channels
• Next steps
Traction Trumps Everything
“A startup is a company designed to grow
fast. Being newly founded does not in itself
make a company a startup. Nor is it necessary
for a startup to work on technology, or take
venture funding, or have some sort of ‘exit.’
The only essential thing is growth. Everything
else we associate with startups follows from
growth.”
Paul Graham, Y Combinator
#1 Failure Reason
“Poor distribution— not product— is the
number one cause of failure. If you can get
even a single distribution channel to work, you
have great business. If you try for several but
don’t nail one, you’re finished. So it’s worth
thinking really hard about finding the single
best distribution channel.”
Peter Thiel, PayPal Founder / FB Early Investor
Traction Channels
Traction Channels
=
Distribution Channels
=
Customer Acquisition Channels
THE BULLSEYE FRAMEWORK
The Bullseye Framework
A framework to help you find your channel in a
five-step process:
1. Brainstorm
2. Rank
3. Prioritize
4. Test
5. Focus
WHY WE DO THIS!
Overcoming Your Biases
Why spend time and money on a channel you know little about, or
you think is irrelevant to your business?
This bias may be preventing you from getting traction.
• Get a competitive advantage by acquiring customers in ways
your competition isn’t.
• There are three reasons why founders ignore potentially
profitable traction channels:
• Out of sight, out of mind. (Speaking Engagements)
• Negative View (You hate Talking over phone)
• Bias against schlep – ( BizDev and TradeShows look time
consuming)
Be honest with yourself:
which traction channels are you currently biased for or against?
10
EXERCISE
TRACTION CHANNELS
Traction Channel 1
VIRAL MARKETING: of growing your user base by
encouraging your users to refer other users.
Traction Channel 2
Public Relations (PR): the art of getting your name out
there via traditional media outlets like newspapers,
magazines and TV.
Traction Channel 3
Unconventional PR: doing something exceptional (like
publicity stunts) to draw media attention.
Traction Channel 4
Search Engine Marketing (SEM): allows companies to
advertise to consumers searching on Google and other
search engines
Traction Channel 5
Display Ads: Text and Banner Ads on popular ad networks
and social medias like reddit, YouTube, Facebook, Twitter to
target customers
Traction Channel 6
Offline Ads: TV spots, radio commercials, billboards,
infomercials, newspaper and magazine ads, as well as flyers
and other local advertisements,
Traction Channel 7
Search Engine Optimization (SEO): is the process of making
sure your website shows up for key search results.
Traction Channel 8
Email Marketing: one of the best ways to convert prospects
while retaining and monetizing existing ones.
Traction Channel 9
Content Marketing: Creating and publishing content on
your blog and other mediums to attract customers.
Traction Channel 10
Engineering as Marketing: Using engineering resources to
acquire customers is an underutilized way to get traction.
e.g Tools, widgets, toolbars, etc
Traction Channel 11
Targeting Blogs: Targeting related blogs to write about your
amazing product.
Traction Channel 12
Business development (BD): the process of creating
strategic relationships that benefit both your startup and
your partner.
Traction Channel 13
Sales: creating processes to directly exchange product for
money.
Traction Channel 14
Affiliate Programs: rewarding one or more affiliates for
bringing customers to your product
Traction Channel 15
Existing Platforms: Focusing your growth efforts on a mega-
platform like an App Store and getting some of their
millions users to use your product.
Traction Channel 16
Trade Shows: A chance for companies in specific industries
to show off their latest products.
Traction Channel 17
Offline Events: Sponsoring or running offline events – from
small meetups to large conferences.
Traction Channel 18
Speaking Engagement: Speaking at events to promote
yourself and the product associated with your startup
Traction Channel 19
Community Building: Forming passionate communities
around their products.
NEXT STEPS
STEP 1: BRAINSTORM
• Brainstorm at least two ideas for
each traction channel. Don’t leave
any out.
• Have in mind what worked/ did not
work for similar businesses
STEP 1: BRAINSTORM
• How could you quickly test this channel?
• How promising is this idea (1– 5)?
• How expensive is it to acquire customers
through this channel (1-5)?
• How many customers can you expect to
acquire through this channel?
• What is the timeframe needed to run
tests?
STEP 2: RANK
Rank each traction channel:
• A (Inner Circle): which traction channels seem
most promising right now?
• B (Potential): which traction channels seem like
they could possibly work?
• C (Long-shot): which traction channels seem like
long-shots?
STEP 3: PRIORITIZE
Now identify your inner circle: the three
traction channels that seem most promising.
If you already have three channels in Column A,
you’re done! If you have more than three, then you
need to get rid of some and vice-versa.
It is often the case that there are a few truly exciting
and promising channels that emerge from ranking,
but not a lot.
STEP 4: TEST
The goal of this step is to find out which of
the traction channel in your inner circle is
worth focusing on.
STEP 4: TEST
Questions:
• Roughly how much will it cost to acquire customers
through this channel?
• How many customers do you think are available
through this channel?
• Are the customers that you are getting through this
channel the ones that you want right now?
STEP 4: TEST
Make that decision based on results from a series of
relatively cheap tests.
When testing, you are replacing your educated
guesses with real answers.
When testing, you are not trying to get a lot of
traction with a channel just yet.
Your main consideration at this point is speed to get
data and prove out your assumptions.
STEP 5: FOCUS
At any stage in a startup’s lifecycle, one traction
channel dominates in terms of customer acquisition.
As you dive deeper into it, you will uncover effective
tactics and do everything you can to scale them until
they are no longer effective due to saturation or
rising costs.
REPEAT THE PROCESS when required
If, unfortunately, no channel
seems promising after testing,
the whole process should be
repeated.

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Workshop Traction

  • 2. Agenda • Intro • The Bullseye Framework • Traction Channels • Next steps
  • 3. Traction Trumps Everything “A startup is a company designed to grow fast. Being newly founded does not in itself make a company a startup. Nor is it necessary for a startup to work on technology, or take venture funding, or have some sort of ‘exit.’ The only essential thing is growth. Everything else we associate with startups follows from growth.” Paul Graham, Y Combinator
  • 4. #1 Failure Reason “Poor distribution— not product— is the number one cause of failure. If you can get even a single distribution channel to work, you have great business. If you try for several but don’t nail one, you’re finished. So it’s worth thinking really hard about finding the single best distribution channel.” Peter Thiel, PayPal Founder / FB Early Investor
  • 5. Traction Channels Traction Channels = Distribution Channels = Customer Acquisition Channels
  • 7. The Bullseye Framework A framework to help you find your channel in a five-step process: 1. Brainstorm 2. Rank 3. Prioritize 4. Test 5. Focus
  • 8. WHY WE DO THIS!
  • 9. Overcoming Your Biases Why spend time and money on a channel you know little about, or you think is irrelevant to your business? This bias may be preventing you from getting traction. • Get a competitive advantage by acquiring customers in ways your competition isn’t. • There are three reasons why founders ignore potentially profitable traction channels: • Out of sight, out of mind. (Speaking Engagements) • Negative View (You hate Talking over phone) • Bias against schlep – ( BizDev and TradeShows look time consuming) Be honest with yourself: which traction channels are you currently biased for or against?
  • 12. Traction Channel 1 VIRAL MARKETING: of growing your user base by encouraging your users to refer other users.
  • 13. Traction Channel 2 Public Relations (PR): the art of getting your name out there via traditional media outlets like newspapers, magazines and TV.
  • 14. Traction Channel 3 Unconventional PR: doing something exceptional (like publicity stunts) to draw media attention.
  • 15. Traction Channel 4 Search Engine Marketing (SEM): allows companies to advertise to consumers searching on Google and other search engines
  • 16. Traction Channel 5 Display Ads: Text and Banner Ads on popular ad networks and social medias like reddit, YouTube, Facebook, Twitter to target customers
  • 17. Traction Channel 6 Offline Ads: TV spots, radio commercials, billboards, infomercials, newspaper and magazine ads, as well as flyers and other local advertisements,
  • 18. Traction Channel 7 Search Engine Optimization (SEO): is the process of making sure your website shows up for key search results.
  • 19. Traction Channel 8 Email Marketing: one of the best ways to convert prospects while retaining and monetizing existing ones.
  • 20. Traction Channel 9 Content Marketing: Creating and publishing content on your blog and other mediums to attract customers.
  • 21. Traction Channel 10 Engineering as Marketing: Using engineering resources to acquire customers is an underutilized way to get traction. e.g Tools, widgets, toolbars, etc
  • 22. Traction Channel 11 Targeting Blogs: Targeting related blogs to write about your amazing product.
  • 23. Traction Channel 12 Business development (BD): the process of creating strategic relationships that benefit both your startup and your partner.
  • 24. Traction Channel 13 Sales: creating processes to directly exchange product for money.
  • 25. Traction Channel 14 Affiliate Programs: rewarding one or more affiliates for bringing customers to your product
  • 26. Traction Channel 15 Existing Platforms: Focusing your growth efforts on a mega- platform like an App Store and getting some of their millions users to use your product.
  • 27. Traction Channel 16 Trade Shows: A chance for companies in specific industries to show off their latest products.
  • 28. Traction Channel 17 Offline Events: Sponsoring or running offline events – from small meetups to large conferences.
  • 29. Traction Channel 18 Speaking Engagement: Speaking at events to promote yourself and the product associated with your startup
  • 30. Traction Channel 19 Community Building: Forming passionate communities around their products.
  • 32. STEP 1: BRAINSTORM • Brainstorm at least two ideas for each traction channel. Don’t leave any out. • Have in mind what worked/ did not work for similar businesses
  • 33. STEP 1: BRAINSTORM • How could you quickly test this channel? • How promising is this idea (1– 5)? • How expensive is it to acquire customers through this channel (1-5)? • How many customers can you expect to acquire through this channel? • What is the timeframe needed to run tests?
  • 34. STEP 2: RANK Rank each traction channel: • A (Inner Circle): which traction channels seem most promising right now? • B (Potential): which traction channels seem like they could possibly work? • C (Long-shot): which traction channels seem like long-shots?
  • 35. STEP 3: PRIORITIZE Now identify your inner circle: the three traction channels that seem most promising. If you already have three channels in Column A, you’re done! If you have more than three, then you need to get rid of some and vice-versa. It is often the case that there are a few truly exciting and promising channels that emerge from ranking, but not a lot.
  • 36. STEP 4: TEST The goal of this step is to find out which of the traction channel in your inner circle is worth focusing on.
  • 37. STEP 4: TEST Questions: • Roughly how much will it cost to acquire customers through this channel? • How many customers do you think are available through this channel? • Are the customers that you are getting through this channel the ones that you want right now?
  • 38. STEP 4: TEST Make that decision based on results from a series of relatively cheap tests. When testing, you are replacing your educated guesses with real answers. When testing, you are not trying to get a lot of traction with a channel just yet. Your main consideration at this point is speed to get data and prove out your assumptions.
  • 39. STEP 5: FOCUS At any stage in a startup’s lifecycle, one traction channel dominates in terms of customer acquisition. As you dive deeper into it, you will uncover effective tactics and do everything you can to scale them until they are no longer effective due to saturation or rising costs.
  • 40. REPEAT THE PROCESS when required If, unfortunately, no channel seems promising after testing, the whole process should be repeated.

Editor's Notes

  1. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  2. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  3. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  4. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  5. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  6. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  7. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  8. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  9. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  10. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  11. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  12. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  13. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  14. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  15. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  16. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  17. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  18. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  19. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  20. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  21. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  22. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  23. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  24. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  25. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  26. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  27. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  28. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  29. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  30. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  31. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  32. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  33. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes
  34. Brief overview on the topic of lean startup, then we will move to one essential feature and framework, It is hands on so after a short introduction you will create something Change your place Take notes