The Part They Don’t Tell You About Startup Team Building


This post is by Tomasz Tunguz from Tomasz Tunguz


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At Google, the director of my team repeated a management mantra to us quite often. “Manage yourself out of a job; make yourself redundant”, she would say. “Empower your people and then get out of the way.” Our director was a terrific team builder. Before Google, she founded a startup where she learned to build a company. When she told us her mantra, she was sharing her learnings with us.

Mobile Social Networks: The New Customer Acquisition Powerhouse


This post is by Tomasz Tunguz from Tomasz Tunguz


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There’s a force in mobile app distribution that isn’t talked about much despite its magnitude: mobile social networks. Mobile social nets are becoming the predominant mobile app paid discovery/distribution platforms. How big is this force? Line, the Japanese mobile messenger with more than 200M users is on a $400M run rate, 60% of which is derived from app distribution. Kakao Talk will pay out about $600M to developers this year - which is about 10% of iTunes global developer payout in 2012.

Mobile Social Networks: The New Customer Acquisition Powerhouse


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




mobile-social-networks1-639x420.jpg There’s a force in mobile app distribution that isn’t talked about much despite its magnitude: mobile social networks. Mobile social nets are becoming the predominant mobile app paid discovery/distribution platforms. How big is this force? Line, the Japanese mobile messenger with more than 200M users is on a $400M run rate, 60% of which is derived from app distribution. Kakao Talk will pay out about $600M to developers this year - which is about 10% of iTunes global developer payout in 2012. Remember, Kakao only serves Korea. Facebook’s mobile revenue will reach $2.5B this year driven by mobile CPI ads. In short, these networks are huge user funnels and money-making machines. To achieve this scale, these mobile social networks offer cost-effective customer acquisition by combining two network effects: user data aggregation and ad targeting data learning. In Line, Kakao Talk and Facebook, users sign up, create profiles and Continue reading "Mobile Social Networks: The New Customer Acquisition Powerhouse"

The Part They Don’t Tell You About Startup Team Building


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




usa.cuba.533.jpg At Google, the director of my team repeated a management mantra to us quite often. “Manage yourself out of a job; make yourself redundant”, she would say. “Empower your people and then get out of the way.” Our director was a terrific team builder. Before Google, she founded a startup where she learned to build a company. When she told us her mantra, she was sharing her learnings with us. Company builders sow the seeds of a team, cultivate each teammate, promote a leader from within and then step away after the team has become capable of running itself. They are force multipliers. Where there was nothing, a self-sustaining organization has blossomed. It’s a beautiful thing. But no one talks about what happens after that process is completed. Watching company-building first-hand at a few portfolio companies, I’ve listened to founders and managers explain the challenges of being in this Continue reading "The Part They Don’t Tell You About Startup Team Building"

The Series A Is Overloaded


This post is by Tomasz Tunguz from Tomasz Tunguz


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There’s a concept in computer programming called operator overloading that neatly describes the current Series A investment market. Overloading means using the same code for two very different purposes depending on inputs. For example, a programmer could redefine the + function so that instead of adding two numbers, the function would multiply the numbers if one of the numbers was negative. Overloading can create lots of confusion in programming because the same function name can return very different results.

The Series A Is Overloaded


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




overloading-the-car.jpg There’s a concept in computer programming called operator overloading that neatly describes the current Series A investment market. Overloading means using the same code for two very different purposes depending on inputs. For example, a programmer could redefine the + function so that instead of adding two numbers, the function would multiply the numbers if one of the numbers was negative. Overloading can create lots of confusion in programming because the same function name can return very different results. The Series A market is overloaded. In my book, a Series A is the first round of financing with any single investor committing more than a $1M, typically led by an institutional investor. But everyone has a different definition. A company may define a Series A any way they like or even give it a different name: I’ve seen Series 1 or even Series Cool. But I digress. In the market
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Continue reading "The Series A Is Overloaded"

SaaS Marketing | Maximizing Customer Lifetime Value


This post is by Joel York from Chaotic Flow by Joel York


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saas marketingWhat’s the stronger driver of SaaS company growth: customer acquisition or customer lifetime value? The answer is yes. Rapid, sustainable SaaS growth is equal parts customer acquisition and customer lifetime value. Simply multiply these two numbers and you get your SaaS growth ceiling, the most revenue your SaaS business can ever achieve. Period. The end. If you want to change your future, you have to change one of these numbers. However, most SaaS marketing professionals think their job ends at purchase. In SaaS, the intital purchase is only the first of many. Keeping each and every customer around longer and making the most of the business relationship along the way has as much impact on SaaS company growth as acquiring more customers. Therefore, good SaaS marketing lasts a customer lifetime.

This is the third post in a series that paves the path to sustainable SaaS growth. The first post in this series introduced the three fundamental levers of SaaS growth: customer acquisition, customer lifetime value and viral customer network effects. This installment explores the second lever and provides three proven SaaS marketing strategies to drive SaaS growth by maximizing customer lifetime value.

Two Views of Customer Lifetime Value

There are two sides to every purchase: buyer and seller. Maximizing customer lifetime value isn’t something you do to a customer, it’s something you do for a customer. In SaaS, customer lifetime value is often expressed as average recurring revenue times the average customer lifetime (one divided by percentage churn rate), however, this is only the sellers side of the coin. When thinking about what you can do to maximize customer lifetime value, it is a good habit to think about it from your customer’s point-of-view. For example, reducing churn means giving your customer a reason to stick around, while upselling and cross-selling mean solving more problems, incresing satisfaction, and providing greater ROI. Getting paid is just an end to the means.

SaaS Marketing Strategy #5 | Reduce Churn

There is only one SaaS marketing strategy to reduce churn: Continue reading "SaaS Marketing | Maximizing Customer Lifetime Value"

Analyzing Twitter Ad Performance for the Last 9 Months


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




I’ve been promoting my Twitter account since October 2012 in effort to better understand social media content marketing and to promote that great vanity metric, Twitter follower count. At the outset, I promoted my account and links to blog posts. I prize followers more than one time visits to a blog, because the long term marketing relationship provides many chances to bring someone to my blog. Promoting links sends traffic to a single blog post, but doesn’t convert to followers with a very high rate.

The Sales and Marketing Spend Strategies of Billion Dollar SaaS Companies


This post is by Tomasz Tunguz from Tomasz Tunguz


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How much should your SaaS startup spend on sales and marketing? I’ve written about using unit economics and lead funnel performance to answer this question. Emulating the patterns of successful SaaS companies is another technique. There are about 34 publicly traded SaaS companies that have published their revenue and sales & marketing expenses. Though their revenue growth rates are each unique, the sales and marketing spend patterns are quite similar. The revenue ramps of public SaaS companies follow the familiar exponential growth path.

Analyzing Twitter Ad Performance for the Last 9 Months


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




I’ve been promoting my Twitter account since October 2012 in effort to better understand social media content marketing and to promote that great vanity metric, Twitter follower count. At the outset, I promoted my account and links to blog posts. I prize followers more than one time visits to a blog, because the long term marketing relationship provides many chances to bring someone to my blog. Promoting links sends traffic to a single blog post, but doesn’t convert to followers with a very high rate. I spent $10 per day for 312 days and set my max bid to $2.5 per follower for people in the Bay Area. On average, I spent $9.28 per day to acquire 5.3 followers for an average cost-per-follower (CPF) of $1.73. Below is the detailed data: followers.png New followers are marked in gray and lost followers, those who unfollow me, are marked
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Continue reading "Analyzing Twitter Ad Performance for the Last 9 Months"