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zero to traction
it’s really hard.
today’s talk:
traction, traction,
traction, traction,
traction, traction
... but how to get it?
first, you need
product/market fit.
then you can optimize
for growth.
0
12.5
25
37.5
50
post Product/Market fitpre P/M fit
traction.
product/market fit
When people who know they want your product
are happy with what you’re offering
... then you’re ready to shift your focus from product to
distribution and “win the market.”
what P/M fit looks like
Consumer products:
Usage 3 out of every 7 days
Organic growth of 100s of signups/day
30% users are active the day after signup
Clear path to 100,000 users
what P/M fit looks like
SaaS products:
5% conversion rate from free-to-paid
3X CPA to LTV ratio
<2% monthly churn rate
Clear path to $100k MRR
if you have that,
just add water.
Email me:
voodoo@gmail.com
Read more:
http://andrewchen.co
what if you don’t have
product/market fit?
then get it done,
before you fail.
Most startups fail before reaching P/M fit.
Usually it takes years, not months, to reach it
product/market fit,
the easy way.
choose your own
difficulty.
(But really, you should take it easy on yourself)
pre-existing product
category
Ideally, many customers who know they want your
product.
They are already looking.They know how to compare
and shop for products like yours.
very large # of
customers “pulling”
Ideally, there’s a huge market of pre-existing “pull” for
your product.Validate with searches, ads, etc.
A big market means there’s often room to segment.
lots of successful
competition
Ideally there’s lots of competition with traction. More
datapoints to figure out what the true MVP looks like.
However, ideally fragmented or incompetent or on a
different platform.
clear axes of
competition
Ideally, it’s very clear how you are trying to substitute
for a pre-existing product. Simpler, but different.
Different: Escaping the Competitive Herd
Blue Ocean Strategy
build for yourself
Ideally, you’re a superuser of your own product
category, so you can understand what competitive
dimensions work.
Easiest short-term
path: Clone something
that already has P/M fit
If the market keeps growing, then new users will come
to you just to try it out.
Lots of problems through.
0
12.5
25
37.5
50
post Product/Market fitpre P/M fit
traction.
More balanced:
Clone 80%,
innovate on 20%
Make sure your innovation is fundamental and can be
experienced in the first 60 seconds in the UX.
Analyze and pick a clear competitive dimension.
common mistakes
metaphors often lead
to “fake” markets
X forY
“Pinterest for business” vs “Pinterest for dogs”
The substitution test
too much “minimum”
in MVP
Competing in existing markets means there’s a baseline.
Build something simpler, and different, but you’ll want to
focus on switching people.
technology in search of
a problem
a bet on new human
behavior
art for artists
very lean startup, but
terrible market and
product choices.
how to scale?
“throwVC money and
MBAs at the problem”
Once it works, then it’s an optimization problem to
figure out how to distribute it cheaply to as many
people as possible.
Usually through paid ads, SEO, or virality.
Paid ads
Get this equation to work:
LTV = 3 * CPA
Viral loops
Get this equation to work:
# invites/user * invite acceptance > 1
SEO
Get this equation to work:
% content creation * # created * Google Magic
just add water.
Email me:
voodoo@gmail.com
Read more:
http://andrewchen.co

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