Before we get started, I want to tell you one quote from a guy name Adam Nash.
Here it comes:
“Growth is important, and most great companies take it seriously.” – Adam Nash
For example, let’s take an example of Facebook. You know what their internal metric when they first started out was? How many more users were they adding per day? And they weren’t just looking at it as a pure number.
So if they had a thousand users in the first day, and the second day they had another thousand users, and then the third day they had another new thosand users, that’s slowing growth.
You’re not gonna increase your revenue, your traffic, your sales, unless you take growth seriously.
Percantage-wise you’re not growing as fast. So their goal was to a faster percent than the previous day, right?
If you take growth seriously, you can actually do quite well.
But there are three main things you need to know before you start hacking your way into growth.
If you don’t know who your customers are, there is no way you’re going to actually make any money.
It was funny when Neil Patel created KISSmetrics and his co-founder was to say something like:
“Yeah, we’re analytics company, anyone who has an online website is gonna pay us, that is our customers.”
They failed miserably when they did that marketing approach.
Because everyone is not there customers. The local shop on the corner that sells pizzas is not their customer. It’s not useful for them. You got to be much targeted. For them, it was companies that do at least roughly what 7 to 8 Million Euros a year and they’re in E-commerce, Software, Service, or Subscription. You got to get very particular.
How do you reach to your customers?
Do you reach them on Twitter, Facebook, Google whatever it maybe, you got to figure out what channels your customers are actually using. And most importantly, when you’re trying to grow up, you can’t just look at the most popular channels. These channels get crowded very fast.
Now, let me give you an example of this.
You guys all know dropbox, right? So when Dropbox first started out, the worh over 10 billion US dollars, that’s a lot of cash.
But when they first started out, did you know they actually try to acquire customers on Google AdWords before they try doing any growth or anything?
What’s the problem with that?
Well their product is all the ninety nine dollars a year. When they were trying acquire customers off of Google, they were spending 233 to 388 dollars. Do those economics work out?
No, not at all – why?
- They’re paying way more than the customers paying them
- Just because the customers paying them $99, doesn’t mean they make a $99. There’s cost for that customer. Their support costs, there’s development costs, there’s cost to host their files, right?
So what a Dropbox do? They relized that paid Ads don’t work for them. But they realized that they can hack their way into growing.
So they did this thing in which they do the distribution hack.
Want more space on Dropbox for free, invite some friends, tweet it out, connected to your Iphone, refer a friend, right?
When they started doing all of these things that actually worked.
Then I myself twitter out to my Twitter followers, it works. It’s kind of silly of me; I should have just paid in $99 because eventually after I did all the tweeting and stuff, I still use up my free space.
It works out for them and it worked out for me. It was a great distribution hack. So, there’s two strategies that I am going to teach you.
Not let’s get started with Integrations:
Are you down with other people’s platform? The more people out there that you can target, right? The bigger your market, that means some else already out there with those customers.
For example, if you’re targeting a very small niche there may not be a lot of other businesses with your exact customer base.
But if you’re going after something broad, someone out there who is not a competitor also has some of your same customers.
For example, KISSmetrics is an analytics. A lot of their customers use Google Analytics, a lot of them use Dropbox, and there are all these other tools their customers use. And instead of just saying, hey let’s do AdWords to go and get them let’s do Facebook Ads. Why not actually partnered with some of these other channels?
So if you look at Shopify, they’ve over 30K plus businesses paying for Shopify. Sale sources over a hundred thousand businesses. These businesses may not seem like a lot of businesses but Sell Sources customers spend a lot of money, right?
I think 40 plus 50 billion dollars – that’s a lot of coins.
Box over a hundred and twenty thousand businesses, 37signals over a hundred and fifty, Yammer has over 200,000, Constant contact has over 400,000, Github has over 1.9 Million, MailChimp has over 2 Million, Google Apps over 3 Million, Freshbooks has over 4.5 Million, Google Analytics over 30 Million businesses are using it (That’s a lot), Evernote is being used by over 30 Million folks, and last but not least, Dropbox over 50 Million peoples are on Dropbox.
So what does this tell you? If you leverage their user base you can actually grow. So how do you actually do these integrations?
- These integrations have to make your product better and the other person’s product better.
For example Evernote has a lot of users. Neil Patel sells analytics; does it make sense for him to integrate with Evernote (a place where you just take notes)?
What do you think Yes or No?
The reason it doesn’t is someone who’s on Evernote is just making like to do list. Oh, I need to do this or I need to buy groceries or I need to go to the mall today, I need a go put some more petrol in my car, right?
They’re selling to be to be but integration with Google Analytics makes sense.
Because if they’re using Google Analytics they can say Hey, Google Analytics will show you or shows who came to your website and Kissmetrics tells you what happened, right?
In which we can actually give them more data on top of Google Analytics that benefits them and it benefits Kissmetrics too.
Because more people get more of their Google Analytics plus it allows us to get their user base in which why market to our own user to random people online when they cannot eat an ideal customer, right?
So that’s an example of integration that benefits both parties.
You also want to discover what is valuable and you can do this by asking people. Ask from your users, ask your customers. What other services or other products whether tools do you use, what other websites do you go on? This will help you identify what solutions you should potentially integrate with.
Because you don’t want to just integrate with the business because you think it’s the right fit, you want your customers to tell you, “Hey, this is the right fit, this is what I use”. You should integrate with these guys.
That way you’re not wasting your time, right?
So you want to make sure that your only integrating with tools, services, products, applications, websites that your users feel that be very beneficial and have been a win-win.
Once you do that you need to make your partner pages awesome. You can just integrate with Dropbox, Shopify whatever it maybe and expect people to just come on board and sign up.
It doesn’t work that way. So when you integrate what you need to do is a few things:
- Create partner page, letting people know that they can integrate with Shopify or whatever it maybe in your product, right?
- Most these big companies that have a lot of users have very popular Facebook fan pages, so what you want to do is you can create Facebook campaigns, targeting their users, so people who like Dropbox, you can show them Ads and you can actually show them as to integrate with your product
And once you start getting traction three you need to head up the companies are integrating with and try to get them to promote this integration to their user base and you’ll be shocked they actually want to promote it.
Why? Because the more integration their users do the longer they’ll end up sticking around and paying them so it’s a win-win situation.
You know what the one thing I bet that everyone uses more than anything else – Emails, right?
You can see website like Internet Outages, this website is just started and has been serious on Work Emails.
The World revolves around especially the working world. Everyone has to have an Email account. Whether it’s a Gmail, Hotmail or at Microsoft, you know your company that you work for, whatever it maybe. Everyone has Emails.
If you can figure out how to tap it, you can actually get a big customer base quickly. This is how people like Facebook and Twitter growth (even currently), Linkedin example right?
A lot of them all grow through Emails.
So for example, Box says “Hey the more Emails you put in of your colleagues, the more free space will give you”
It’s enticing them to invite their friends. Facebook knows that within the first seven days, I believe your need is either 10 or 30 friends (I believe the number could be 30).
They know if you’ve 10 or 30 friends within the first seven days, you’re very likely to keep using Facebook forever. So they push really hard on getting you to put in your Email and inviting friends.
Now the thing with Emails is you got to optimize on boarding. It’s actually not that difficult to get people to put in their Emails and just say, “Hey, sign up, invite some friends”. But if the on boarding isn’t good, then their friends aren’t going to use a product.
So good onboarding, for example, is you Sign up for Facebook and you say alright cool now that you’ve signed up, let’s connect with your friends. Putting your Email so we can see which of your friends already on Facebook. If none of them are like, alright invite your Friends to Facebook and then after you do that then they say all right let’s create your profile, add an image, add your info, add your bio, add your birth date et cetera. But you got to optimize on boarding and continually tweak and test it. Without doing that what you’ll find is you’ll get a big drop off from Emails. It’s all about the on boarding, it’s very easy to get people to invite and the cool part about the Email addresses to is when you’re doing this whole process, you don’t even have to ask people for the name and email anymore.
So, just answer me: Do you have a Facebook, Twitter, and Gmail account? I am fairly certain your answer is yes.
You don’t have to ask peoples for their name, email or password. What you do is just you say “Hey sign up through Twitter/Facebook etc”, because then they just click a button. Your conversion rate will go up by roughly 30 plus percent which is huge.
And then you can tap into all their contacts etc really quickly – so that’s a quick trick. Then when you’re doing the onboarding, you gotta let them know who they should follow. This actually helps the whole process. It creates that circle, right?
If you don’t have that circle, there’s going to be a drop-off. You got to get them keep connecting and inviting etc. It’s a never-ending game.
Dropbox is a great example of this in which they try to get you to invite more peoples, more people you invite, more storage you get, that’s why they utilized it.
You got to measure the number of people in every company or every person has in their contact list. This will help you determine what the potential you can actually go for because if your average user has 200 Peoples in their contact lists and they’re only inviting 10 of their friends to use your service, your product, whatever it maybe, that means you’re not doing a good job with the invitation for the onboarding because you may be able to get 40 of them to invite, right – Instead of them inviting only 10 peoples.
You also need to figure out the engaging interactions in which when someone signs up, there’s things that they do within the first five, six, seven days that makes them that you want to use your product your service and invite more people.
If you can figure out what these actions are, you get more people to stick around for a lot longer.