A Letter to the Editor


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Writing on the web is undergoing a renaissance. What started in the late 90s as mass-market adoption of blogging has given way to high production quality, curated magazines. Despite all the innovation in blogging, there’s one part of the magazine that hasn’t been reinvented: the Letter to the Editor. If you’ve ever read the Economist, you might have breezed past this section. Two pages long and full of small quips and challenges, the Letter to the Editor section has its own culture.

A Letter to the Editor


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




screenshot-nyt.jpg Writing on the web is undergoing a renaissance. What started in the late 90s as mass-market adoption of blogging has given way to high production quality, curated magazines. Despite all the innovation in blogging, there’s one part of the magazine that hasn’t been reinvented: the Letter to the Editor. If you’ve ever read the Economist, you might have breezed past this section. Two pages long and full of small quips and challenges, the Letter to the Editor section has its own culture. Each letter starts with “SIR –”, a relic of the magazine’s roots that I adore. Every major publication has such a section. But the blogging magazines like Svbtle, Medium, LinkedIn and the Magazine lack it. Over the past few weeks, I’ve been asking successful bloggers like Chris Dixon and Andy Chen about the keys to their growth. Among other responses, both highlighted community. But not just any community Continue reading "A Letter to the Editor"

Boiling a Billion Frogs


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Tracing the arc of Facebook’s user sharing model is to identify the biggest case of frog boiling in history. Contrast Facebook’s origins as a dating site limited to students attending a particular college to an exhibitionist’s dream syndicating every detail of a life across of 1000+ friend networks and potentially many more followers. The question for users is: what is the quid pro quo? What value am I gaining in exchange for my data.

Boiling a Billion Frogs


This post is by Tomasz Tunguz from Tomasz Tunguz


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Frog-in-Boiling-Water.jpg Tracing the arc of Facebook’s user sharing model is to identify the biggest case of frog boiling in history. Contrast Facebook’s origins as a dating site limited to students attending a particular college to an exhibitionist’s dream syndicating every detail of a life across of 1000+ friend networks and potentially many more followers. The question for users is: what is the quid pro quo? What value am I gaining in exchange for my data. Is it a fair swap or a bait and switch? What do you think? Message me on twitter with your thoughts In my view, the data-by product created by users is enormously valuable and fuel for innovation. Facebook’s billions in revenue is the most direct proof and the ecosystems built around the data stream are at least as large. Max Levchin’s newest company Affirm, Kaggle, Lending Club, Lyft and others use social signals to build Continue reading "Boiling a Billion Frogs"

The Relationship Between Margins and Acquisition Prices


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Amazon operates its businesses at very close to break-even, zero net margin, to win the greatest share and prevent competition from undercutting them. This is as true for their books business as their infrastructure business, AWS. Bezos has explicitly stated this strategy and it’s the one that has led to Amazon’s massive success in many different lines of business. Over sushi, a friend explained to me that this strategy might also extend to the way the company views acquisitions.

The Relationship Between Margins and Acquisition Prices


This post is by Tomasz Tunguz from Tomasz Tunguz


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iwork-keynote2.jpg Amazon operates its businesses at very close to break-even, zero net margin, to win the greatest share and prevent competition from undercutting them. This is as true for their books business as their infrastructure business, AWS. Bezos has explicitly stated this strategy and it’s the one that has led to Amazon’s massive success in many different lines of business. Over sushi, a friend explained to me that this strategy might also extend to the way the company views acquisitions. If Amazon’s strategy is to run most of their businesses at break-even including acquisitions, then the value of a profitable and fast-growing startup to Amazon is decidedly less than to a another acquirer who will run a business at greater margin if for no other reason than the startup will spin-off less cash under Amazon’s low-margin strategy. Many acquirers will pursue attractive larger, revenue generating startups with an aim to keep Continue reading "The Relationship Between Margins and Acquisition Prices"

Every Damn Day


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“Blades square,” the coach yelled from the Boston Whaler as he increased the speed on his outboard motor, pursuing the eight man boat as we gained speed. I sat in four-seat, right in the middle of the engine room, the place for the taller, heavier rowers. The eight man team reluctantly complied with the coach’s order and rowed across the Long Island Sound, NYAC jerseys on our backs and the muggy, humid early summer morning sun reflecting in the water, practicing for national championships.

Every Damn Day


This post is by Tomasz Tunguz from Tomasz Tunguz


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red oars.jpg “Blades square,” the coach yelled from the Boston Whaler as he increased the speed on his outboard motor, pursuing the eight man boat as we gained speed. I sat in four-seat, right in the middle of the engine room, the place for the taller, heavier rowers. The eight man team reluctantly complied with the coach’s order and rowed across the Long Island Sound, NYAC jerseys on our backs and the muggy, humid early summer morning sun reflecting in the water, practicing for national championships. Most of the time, oarsmen feather their oars - rotating the blades to be parallel to the water as they move through the air, helping the boat run on an even keel. Holding the blades square decreases the margin for error from a few inches to a few quarters of an inch. If anyone in the boat splashes their oar in the water, the delicate balance Continue reading "Every Damn Day"

Matching Marketing Tactics to The Sales Funnel


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Marketing is one of those words without meaning. Or at least a consistent meaning for most people. Recently, I met a very bright marketer who broke down a few of the different marketing disciplines and matched them to a freemium sales funnel. His framework is a stroke of genius. I’ve drawn it below. The Four Disciplines of Funnel Marketing The triangle on the left is a standard freemium customer conversion process.

Matching Marketing Tactics to The Sales Funnel


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




Marketing is one of those words without meaning. Or at least a consistent meaning for most people. Recently, I met a very bright marketer who broke down a few of the different marketing disciplines and matched them to a freemium sales funnel. His framework is a stroke of genius. I’ve drawn it below. MTS2.png

The Four Disciplines of Funnel Marketing

The triangle on the left is a standard freemium customer conversion process. First customers become aware of the product, then they use the free version of the product, then they convert to paid either by themselves or with the aid of an inside sales team, and finally they are retained as customers. The rectangle on the right contains the marketing disciplines used to grow and optimize customer acquisition metrics on the right. The list isn’t meant to be comprehensive but does get the gist across.