Grasshopper Lessons Learned

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We have done a lot of cool things at Grasshopper, made a huge pricing mistake with Chargify, and shut down Spreadable (a website growing and making money) - here is what we learned from all those experiences!

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Grasshopper Lessons Learned

  1. 1. I’m Jonathan Kay Hi. @JonathanCkay
  2. 2. Lessons Learned #Success #Failure @JonathanCKay | #StartupRiot | @Grasshopper
  3. 3. The Entrepreneurs Phone System
  4. 4. 8+ years in the business @JonathanCKay | #StartupRiot | @Grasshopper
  5. 5. 50 employees @JonathanCKay | #StartupRiot | @Grasshopper
  6. 6. 100,000+ entrepreneurs served @JonathanCKay | #StartupRiot | @Grasshopper
  7. 7. $15+ million revenue @JonathanCKay | #StartupRiot | @Grasshopper
  8. 8. 2003 2010 Who we are TODAY:
  9. 9. Sell Experiences not features @JonathanCKay | #StartupRiot | @Grasshopper
  10. 12. Buzz WORKS @JonathanCKay | #StartupRiot | @Grasshopper
  11. 13. Buzz WORKS @JonathanCKay | #StartupRiot | @Grasshopper
  12. 14. WORKS Word of Mouth @JonathanCKay | #StartupRiot | @Grasshopper
  13. 15. Everyone’s Press
  14. 16. Traditional marketing had companies speak to many to reach one. Today we speak to one to reach many. - Andy Sernovitz
  15. 17. Recurring Billing for Badasses
  16. 18. Pricing #FAIL @JonathanCKay | #StartupRiot | @Grasshopper
  17. 19. Original Current
  18. 20. 200+ Comments
  19. 21. Why? 0.9% paying customers Free = high support costs Paying customers needed features Our hypothesis was wrong
  20. 22. What Did We Learn? @JonathanCKay | #StartupRiot | @Grasshopper
  21. 23. Communicate early & often # 1 @JonathanCKay | #StartupRiot | @Grasshopper
  22. 24. # 2 matters Perception
  23. 25. Free Time Too much, you have. A real job, you must find… # 3 @JonathanCKay | #StartupRiot | @Grasshopper
  24. 26. Grandfather Grandfather, grandfather # 4 @JonathanCKay | #StartupRiot | @Grasshopper
  25. 27. VIRTUAL PHONE SYSTEM RECURRING BILLING
  26. 28. VIRTUAL PHONE SYSTEM RECURRING BILLING REFERRAL MARKETING
  27. 29. Its hard to ask Difficult to measure Not easy to build @JonathanCKay | #StartupRiot | @Grasshopper THE PROBLEM
  28. 31. 22% CONVERSION RATE 75% LOWER CPA $100,000
  29. 33. But WHY @JonathanCKay | #StartupRiot | @Grasshopper
  30. 34. Opportunity Cost Product was best sold in a way that is not a core strength at Grasshopper CPA and Customer payback were too high to scale
  31. 35. One Year Over $500,000 May 2010 - April 2011
  32. 36. Lessons LEARNED @JonathanCKay | #StartupRiot | @Grasshopper
  33. 37. What works for you , wont always work for them #1
  34. 38. Don’t be embarrassed # 2 Launch early @JonathanCKay | #StartupRiot | @Grasshopper
  35. 39. # 3 Marketing Launch = Product Launch
  36. 40. One Leader One Vision
  37. 41. Your early team is very important Keep it small product technical # 5
  38. 42. More developers on a product is GOOD
  39. 43. More developers on a product is GOOD More developers can simply lead you down the wrong path FASTER
  40. 44. Fake it till you Make it # 6 @JonathanCKay | #StartupRiot | @Grasshopper
  41. 45. #5 Fake it! <ul><li>Smoke testing </li></ul>
  42. 47. Investment in = Investment in
  43. 48. “ Grasshopper spreadable case study”
  44. 49. <ul><li>Brand Loyalists </li></ul>Word of Mouth Testing Press Releases are Dead Community Partnerships “ New PR” Customer Development
  45. 50. Thank You. <ul><li>I blog ---> http://grasshopper.com </li></ul>I tweet ---> @JonathanCkay [email_address]

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