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Customers Love Free Stuff … But That’s Not Your Problem

abovethecrowd.com

Paypal famously offered customers $5 to invite a friend, who would then also get $5 as part of a highly successful viral marketing campaign (they actually started at $20, and then reduced it to $10 and then ended at $5). If somehow Sofi could obtain allocation to these so called “hot IPOs” clearly it would be a powerful marketing tool.

IPO 82
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Business ecology and the four customer currencies

Startup Lessons Learned

In an ecosystem, each participant acts according to its own imperatives, but these selfish actions have an aggregate effect. In a previous post , I covered the three main drivers of growth: Paid, Sticky, and Viral. Let’s look at a viral growth company, like Facebook. A successful startup strives for this latter case.

Customer 156
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The 10 laws of SaaS unveiled at Bessemer CEO Summit

Cracking the Code

2007 was a turning point for the SaaS industry with the successful IPOs of NetSuite, SuccessFactors, DemandTec, Salary.com, Aprimo and Constant Contact. This introduction was also the opportunity to illustrate the amazing growth of our software and saas portfolio in the past years, with aggregated revenues reaching $1.2B Software 2.0:

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Assessing fit with the Wisdom of Crowds

Startup Lessons Learned

In order to get optimal results from a group-based effort, you need three things: diversity, Independence , and an objective method for aggregating results. Aggregate results carefully. Let me briefly summarize the part of the book I find most helpful (leaving a few out, which arent germane to todays topic). Not all crowds are wise.

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Lessons Learned: Validated learning about customers

Startup Lessons Learned

First of all, it means that most aggregate measures of success, like total revenue, are not very useful. Products can find sources of validation with impressive stats along a number of dimensions, such as high engagement, viral coefficient, or long-term retention. This unit of progress is remarkable in several ways.

Customer 167
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Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

Save Asia for post-IPO Single instance, multi-tenant, single datacenter - Have only one version of the code in production. The most innovative B2C companies are lead generation machines, leveraging search engine optimization (SEO), viral marketing, Search Engine Marketing (SEM), email marketing, and other technically-advanced methods.