A quick review on how to develop sustainability for your business. Small walk around the hierarchy of engagement and different monetization strategies.

1. How to sustain your business
Alex Barrera (@abarrera)
alex@press42.com
Photo: Seedlings growing in peat moss pots / Elena Elisseeva ©

2. HELLO MY NAME IS...
http://www.slideshare.net/press42 Alex Barrera (@abarrera)

3. Photo: Gamble / Fernando Carnielli ©
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Making money IS hard

4. Photo: Rey Cascabel/ Antonio Tena ©
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Really HARD

5. Photo: OA6 AtlasV rocket launch by United Launch Alliance / Michael Seeley ©
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Break-Even

6. Photo: Filament LED / Rambling' Geek ©
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Not what you think…

7. Photo: Hot stuff / Pim van Wingerden ©
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Not the MARKET

8. Photo: THE ART OF KENDO BY ALAIN DOUANGMANIVANH / Alain Douangmanivanh ©
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Not even competition

9. Photo: Circles / Bridgette Kistinger ©
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YOURSELF

10. Photo: Sign free/ Marco Guidi ©
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11. Photo: Valley of the moon / Leo Olson ©
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No one will use it!

12. Photo: For sale / Jaromír Chalabala ©
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13. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Sustainable Business Equation
Sales > Costs

14. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
SALES =
P(Value)
Price
where Price > 0
Sustainable Business Equation

15. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
SALES =
P(Value)
Price
where Price > 0
Sustainable Business Equation
P(Value) Probability of value for user

16. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
SALES =
P(Value)
Price
where Price > 0
Sustainable Business Equation
P(value; perception, market size)

17. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
SALES =
P(Value)
Price
where Price > 0
Sustainable Business Equation

18. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
SALES =
P(Value)
Price
where Price > 0
Sustainable Business Equation

19. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
SALES =
P(Value)
Price
where Price > 0
Sustainable Business Equation

20. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
SALES =
P(Value)
Price
where Price > 0
Sustainable Business Equation

21. Photo: Register II / Stanislav Novak ©
http://www.slideshare.net/press42 Alex Barrera (@abarrera)
What’s value?

22. Photo: Pyramid / Balázs Vörös ©
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Hierarchy of Engagement

23. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Source: https://news.greylock.com/the-hierarchy-of-engagement-5803bf4e6cfa#.lpgtwvy5k

24. Photo: Gardener / Jaromír Chalabala©
http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Level I: Growing engaging users

25. Photo: Color circle of pencils with complementary colours / Tonko Oosterink ©
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CORE
ACTION

26. Photo: Color circle of pencils with complementary colours / Tonko Oosterink ©
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?

27. Photo: Tell me a story / Naomi Anselmo ©
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What they keep coming back for

28. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
SNAP
TWEET
PHOTO
VIDEO

29. Photo: A good story / Monica Rooney ©
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Metrics?

30. Photo: Mixed race baby boy eating spaghetti / Gable Denims ©
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Analysis?

31. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
SNAP
TWEET
PHOTO
VIDEO

32. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
P(value; perception, market size)
+ Perception- Perception
+ Market
- Market

33. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
P(value; perception, market size)
+ Perception- Perception
+ Market
- Market

34. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
P(value; perception, market size)
+ Perception- Perception
+ Market
- Market

35. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
P(value; perception, market size)
+ Perception- Perception
+ Market
- Market

36. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
P(value; perception, market size)
+ Perception- Perception
+ Market
- Market

37. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
P(value; perception, market size)
+ Perception- Perception
+ Market
- Market

38. Photo:Chess game / Andromachi Mitropoulou ©
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STRATEGIES

39. Photo:Chess game / Andromachi Mitropoulou ©
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Increase market size

40. Photo: Shifter / Stanislav Novak ©
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Shift something

41. Photo: Two girls (2-3, 4-5) with magnifying glasses in garden / Shestock ©
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Focus on the BEHAVIOUR

42. Photo: Two girls (2-3, 4-5) with magnifying glasses in garden / Shestock ©
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WHY??

43. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
HYPOTHESIS
TESTING

44. Photo:Chess game / Andromachi Mitropoulou ©
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Increase perception

45. Photo: Hunting Namaqua chameleon (Chamaeleo namaquensis) / Andy-Kim Möller ©
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Identify Target

46. Photo: Hotel Resort Laptop / kitchbain ©
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Check content
&
sources

47. Photo: Reading with big friend / wichan sumalee ©
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Craft story

48. Photo: A new life / Marco Dores ©
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Being born isn’t news

49. Photo: Spam filter / Jen Beek ©
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Don’t SPAM

50. Photo: Sunset costanera sur / Miguel César ©
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Start early on

51. Photo: Above the clouds / Alexandre Biau ©
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Not at the end…

52. Photo:Chess game / Andromachi Mitropoulou ©
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Change core action

53. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
HYPOTHESIS
TESTING

54. Photo: Curly flame / Orlando Parrish ©
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Torch it!

55. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Level II: Retaining users

56. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
How to make them stick?

57. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
MAX(Value)

58. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Accruing benefits
(Implicit)

59. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Accruing benefits
(explicit)

60. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Mounting loses

61. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Critical to your job

62. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
WHAT ARE
YOU
DOING?

63. Photo: Seedlings growing in peat moss pots / Elena Elisseeva ©
http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Photo: Filament LED / Rambling' Geek ©
Some ideas…
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64. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
BUILD PROPRIETARY DATA

65. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
PHYSICAL DATA COLLECTION
(Internet of Things)

66. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Crowdsourced data

67. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Get to Give Data

68. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Collect data exhaust
(Metadata & behavioural data)
Source: https://blog.gnip.com/data-visualization/

69. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Enrich common content

70. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
3 minute rule

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3 minute rule
3 minutes before?

72. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
3 minute rule
3 minutes before?
3 minutes after?

73. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
What prompted the action?

74. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
What about after?

75. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Idea ACID test
1. Informs high-value decision
2. Adds significant value to the decision
3. The value can be measured
4. Critical to your job
5. Integrated into you workflow
6. Frequency of the need is high
7. If costs are cut, this wouldn’t be cut

76. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Idea ACID test
1. Informs high-value decision
2. Adds significant value to the decision
3. The value can be measured
4. Critical to your job
5. Integrated into you workflow
6. Frequency of the need is high
7. If costs are cut, this wouldn’t be cut

77. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Idea ACID test
1. Informs high-value decision
2. Adds significant value to the decision
3. The value can be measured
4. Critical to your job
5. Integrated into you workflow
6. Frequency of the need is high
7. If costs are cut, this wouldn’t be cut

78. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Idea ACID test
1. Informs high-value decision
2. Adds significant value to the decision
3. The value can be measured
4. Critical to your job
5. Integrated into you workflow
6. Frequency of the need is high
7. If costs are cut, this wouldn’t be cut

79. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Idea ACID test
1. Informs high-value decision
2. Adds significant value to the decision
3. The value can be measured
4. Critical to your job
5. Integrated into you workflow
6. Frequency of the need is high
7. If costs are cut, this wouldn’t be cut

80. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Idea ACID test
1. Informs high-value decision
2. Adds significant value to the decision
3. The value can be measured
4. Critical to your job
5. Integrated into you workflow
6. Frequency of the need is high
7. If costs are cut, this wouldn’t be cut

81. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Idea ACID test
1. Informs high-value decision
2. Adds significant value to the decision
3. The value can be measured
4. Critical to your job
5. Integrated into you workflow
6. Frequency of the need is high
7. If costs are cut, this wouldn’t be cut

82. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Level III: Self-perpetuating

83. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Feedback loops

84. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Network effects

85. http://www.slideshare.net/press42 Alex Barrera (@abarrera)

86. Photo: Seedlings growing in peat moss pots / Elena Elisseeva ©
http://www.slideshare.net/press42 Alex Barrera (@abarrera)

87. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Cohort analysis (Churn) & reactivation

89. http://www.slideshare.net/press42 Alex Barrera (@abarrera)

90. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
SALES =
P(Value)
Price
where Price > 0
Sustainable Business Equation

91. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
MONETISATION STRATEGIES

92. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Strategy I: Pay per value

93. http://www.slideshare.net/press42 Alex Barrera (@abarrera)

94. http://www.slideshare.net/press42 Alex Barrera (@abarrera)

95. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
CAP FEATURES

96. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
CAP CAPACITY / STORAGE

97. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
CAP SPEED (TIME LIMITS)

98. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
CAP SUPPORT

99. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
CAP EFFORT

100. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
WHAT LIMIT TO SET?

101. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Premium

102. http://www.slideshare.net/press42 Alex Barrera (@abarrera)

103. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
USAGE SUBSCRIPTION
(SaaS)
TRANSACTION

104. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Strategy II: Advertising + affiliated

105. http://www.slideshare.net/press42 Alex Barrera (@abarrera)

106. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Requires BIG scale

107. http://www.slideshare.net/press42 Alex Barrera (@abarrera)

108. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Increase of
Micro Targeting

109. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Strategy III: Data monetisation

110. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Tough to package

111. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Strategy IV: Donations / Pay What You Can

112. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Always fund rising

113. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
StrategyV: White labelling/Licensing

114. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Corporate clients

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Slow sales

116. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Needs great alignment

117. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
StrategyVI: VC money

118. http://www.slideshare.net/press42 Alex Barrera (@abarrera)

119. http://www.slideshare.net/press42 Alex Barrera (@abarrera)

120. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Acquihires

121. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Technology acquisition

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Independence?

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124. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Bootstrapping

125. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Slower

126. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Independence

127. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Fast closing window

128. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Conclusions

129. Photo: Color circle of pencils with complementary colours / Tonko Oosterink ©
http://www.slideshare.net/press42 Alex Barrera (@abarrera)
CORE
ACTION

130. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Work on retaining users

131. Photo: Hunting Namaqua chameleon (Chamaeleo namaquensis) / Andy-Kim Möller ©
http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Maximize your perception

132. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
MONETISATION STRATEGIES

133. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Rinse & repeat

134. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Sometimes
you scrap it

135. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
Pivoting
&
patient

136. http://www.slideshare.net/press42 Alex Barrera (@abarrera)
‫متشکرم‬
Alex Barrera
alex@press42.com