Consumer investment fatigue


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Many of the promising marketing and media innovations of the past six years, daily deals, subscription ecommerce, social gaming and social media, have been struggling. This trend is plain to see from IPO performance and negative press cycles. I’ve been asked a few times whether there is consumer investment fatigue as a result. Fatigue is too strong a characterization. It would be foolish for any investor to write off consumer investing as a category because of the massive opportunity consumer internet companies offer. The fastest growing and often the largest Internet businesses are consumer businesses: Google, Amazon, Facebook, Instagram, Pinterest, to name a few. Instead, investors are faced with a choice between two strategies. Option 1: pursue a contrarian growth strategy investing in a few consumer Internet companies at similar prices to the previous several years. Implicitly, these investment are bets that new, more lucrative and sustainable revenue streams or Continue reading "Consumer investment fatigue"

Simplicity. Quality. Inspiration.


This post is by Tomasz Tunguz from Tomasz Tunguz


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Two weeks ago, James Reinhart, founder and CEO of ThredUp, led his company through a branding exercise. The team spent an afternoon comparing and contrasting the brand attributes of Starbucks and Peets, Whole Foods and Safeway and a few other competitive pairs. The team quickly distilled each company’s brand into one word. Long ago, each of these brand selected the value that would define their brand. Every decision since that point had been made with that value in mind.

Simplicity. Quality. Inspiration.


This post is by Tomasz Tunguz from Tomasz Tunguz


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Two weeks ago, James Reinhart, founder and CEO of ThredUp, led his company through a branding exercise. The team spent an afternoon comparing and contrasting the brand attributes of Starbucks and Peets, Whole Foods and Safeway and a few other competitive pairs. The team quickly distilled each company’s brand into one word. Long ago, each of these brand selected the value that would define their brand. Every decision since that point had been made with that value in mind. Netflix: freedom. Apple: simplicity. Starbucks: quality. Nike: inspiration. Google: focus on the user. Zappos: service Screen Shot 2012-08-26 at 8.36.15 PM.png Defining a business’s one core value, it’s brand identity, is essential to its success. This core value originates within the company, is reinforced through culture and ultimately permeates the organization through product decisions, marketing copy and customer interaction. Toward the end of the afternoon, James asked the company to perform the brand attribute analysis for Continue reading "Simplicity. Quality. Inspiration."

Radio Ga Ga


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Must content distribution platforms be reinvented every few years? Left to its own devices, the mob will augment, accessorize, spam, degrade and noisify whatever they have access to, until it loses beauty and function and becomes something else. Seth Godin Given the noise and misinformation disseminated on Twitter both during the election and the Sandy disaster, I’ve been wondering how Godin’s thoughts apply to new information networks: blogs and feeds.

Radio Ga Ga


This post is by Tomasz Tunguz from Tomasz Tunguz


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Must content distribution platforms be reinvented every few years?
Left to its own devices, the mob will augment, accessorize, spam, degrade and noisify whatever they have access to, until it loses beauty and function and becomes something else.
Seth Godin
Given the noise and misinformation disseminated on Twitter both during the election and the Sandy disaster, I’ve been wondering how Godin’s thoughts apply to new information networks: blogs and feeds.

Sifting the feed in search of the truth

There is an undeniable early movement toward editorially curated publishing. The Twitter founders have launched the most visible response. Medium, a low volume, high quality content site is a direct (and opposite) reaction to the high volume, noisy Twitter feed.

Content proliferation is governed by its half-life

In addition to volume reduction, Medium axes another dimension: time. Medium places no dates on its posts. Instead, Medium uses a voting system
dolmen_fm_radio.jpg
Continue reading "Radio Ga Ga"

On negotiation


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We negotiate every day in almost every conversation and exchange, whether it’s rescheduling a flight, asking for a product return or responding to a term sheet. I’ve been reading Getting More, a book by Stuart Diamond, who trains the military, Google and many others on negotiation. Everyone should read it. This book is set apart because it recognizes the nature of relationships, emotion and human nature, forgoing concepts like ZOPA and BATNA.

On negotiation


This post is by Tomasz Tunguz from Tomasz Tunguz


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We negotiate every day in almost every conversation and exchange, whether it’s rescheduling a flight, asking for a product return or responding to a term sheet. I’ve been reading Getting More, a book by Stuart Diamond, who trains the military, Google and many others on negotiation. Everyone should read it. This book is set apart because it recognizes the nature of relationships, emotion and human nature, forgoing concepts like ZOPA and BATNA. Instead, the book focuses on simple, tangible tactics: Write your goals down - Focus on achieving those goals and don’t get bogged down by any tangents.
Practice ahead of time - We practice all the time in sports but rarely in business.
Little wins - Negotiation is about small concessions. No one succeeds by asking for the moon.
Understand the other side - Walk a mile in the other person’s shoes to understand what’s important. So you Continue reading "On negotiation"

How much is a social media click worth?


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How much is a social media click worth compared to a email click or a search click for an eCommerce site? Monetate, makers of optimization software for eCommerce landing pages released data answering this question Channel Conversion Rates AOV CPC Relative Worth Email 4.25% 90.4 $1.000 Search 2.49% 82.72 $0.536 Social 0.59% 64.19 $0.0986 Key: Conversion rates = conversion to order from click; AOV = average order value in $; Relative worth = indexed measure of click value based.

How much is a social media click worth?


This post is by Tomasz Tunguz from Tomasz Tunguz


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How much is a social media click worth compared to a email click or a search click for an eCommerce site? Monetate, makers of optimization software for eCommerce landing pages released data answering this question
Channel Conversion Rates AOV CPC Relative Worth
Email 4.25% 90.4 $1.000
Search 2.49% 82.72 $0.536
Social 0.59% 64.19 $0.0986
Key: Conversion rates = conversion to order from click; AOV = average order value in $; Relative worth = indexed measure of click value based. Today, an email click is worth about 10x as much as a social media click and about twice as much as a search click. NB: These figures don’t take into account email acquisition costs or SEO costs or social media presence costs which might skew the results more favorably in search and social media. Nevertheless, there is tremendous opportunity for startups to Continue reading "How much is a social media click worth?"

The most important question a startup can ask


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At the center of every startup is a secret. A secret is not an unknown. Rather, it’s something just not widely believed to be achievable or feasible. In other words, it’s an insight. Exploiting that secret should be the aim of every entrepreneur. Leveraging the secret means disruption and ultimately success. The genesis of every secret is the word why. “Why are things done this way? Why can’t we do better?