107 karma · joined October 8, 2012
I agree with your first piece on attraction - I equate this to creating demand. Your examples from the physical world are really good. There are analogs to the digital world that go above and beyond - but content, distribution, and community are key.
The part I disagree with is that everything below the line is sales. The line between marketing and sales is much more blurry these days due to digital. Lots of "self serve". The pitch, the narrative, the capturing of the demand (i.e. maybe this would be the design of the physical store in the physical world) happens in marketing land and there's strong partnership.
Really interesting that you put sales into COGS. If it works for you, that's great! :) I'd encourage thinking about it in CAC (cost of acquiring a customer) and then using Payback (how quickly you pay the CAC back) as a measure of health.
What do you think marketing does that's above and beyond growing revenue faster? :)
I'm here to learn new perspectives.
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As startup leaders grow their business, they need to understand the core drivers of growth. Based on my experience at several startups, I've summarized the top six metrics that help you deeply understand the revenue, cost, and efficiency of your business.
All the book recommendations in the thread are solid.
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(Dropbox employee here)
Step 1 -- The first thing to do is to build some social proof. I hope you already have a few customers. Request them to be references for your product and feature them and their feedback on your front page
Step 2 -- Ask your customers about who else in their network they think could benefit from such a product and reach out to them.
Step 3 -- As you sign on more customers, repeat Step 1 + 2
Step 4 -- Figure out if there is a pattern in your customers and try to truly understand the market they exist in.
Step 5 -- Once you understand the market, try to figure out which channels through which you can best reach that market (e.g. google ads, billboards, tv ads, partners, etc.). Of course, word of mouth is the best bet, but there are often other really lucrative channels too.
Iterate. This is just the beginning!
This article has some stats - http://fortune.com/2012/11/27/welcome-to-the-age-of-the-free...
Hope this helps.
We think that all college education and beyond should happen in this format!
Internet, at its root, is a communication medium. Things like facebook, google+, pinterest, snapchat, etc. are part of a VERY natural evolution of this medium.
Being part of the chaos doesnt mean you cant see order amidst it. That's where great entrepreneurs come from. They dont go away from all society and magically, one day, reappear with a brilliant idea. They are in the middle of the chaos, figuring out what works, why it works and how to make it work even better...