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MARKETING 101FOR STARTUPS
About Me Sean Percival Partner, 500 Startups Run the Mountain View Accelerator Based in Silicon Valley On Twitter @Percival Previously Founder Vice President Marketing, Myspace Janitor
Most people suck at marketing.
General Pro Tips You’ll might need to try 10 things to get 1 thing that works 98% of visitors don’t convert so how do you bring them back? Marketing at it’s core is about moving emotions and feelings like Desire Greed Nostalgia FOMO Etc etc Knowing your stuff with regard to marketing (or at least acting like you do) is key to fundraising Never say “We did all this with no marketing!” or “We are totally going to go viral!”
Marketing Hiring Tips In the early days, the founders need to do everything. Sorry not sorry! Post Seed/Series A, make your first senior marketing hire At any time bring in a jr analyst and/or media buyer Avoid the early CMO trap Consider performance based comp
Reasons Your MarketingHire Will Not Be Successful
They don’t have the budgetthey need to be successful. Expectations Actual Budget
Actual Budget Your CTO is kind of a jerk and doesn’t really care about marketing Or there’s no developer resources available for marketing needs.
Measurable and sustainablegrowth is not encouraged. "Yes, the planet got destroyed. But for a beautiful moment in time we created a lot of value for shareholders."
CAC/ACQ/CPA = Customer acquisition cost, acquisition, cost per acquisition CPL = Cost per lead LTV = Life Time Value LTV net ACQ = Life Time Value net acquisition costs Funnel = A series of pages/events a user must navigate CPC = Cost Per Click CPM = Cost Per 1000 Impressions CTR = Click through rate IO = Advertiser Insertion Order Churn Rate = Loss of users from one cohort to the next Earned Media = Free(ish) organic traffic usually driven from social SEM = Search Engine Marketing (paid) SEO = Search Engine Optimization (Freeish) SERP = Search Engine results page Above the fold = Viewable to the user without having to scroll Back Links = Links from external websites into yours White Hat/Grey Hat/Black Hat = Legit/Somewhat shady/Way shady Pagerank = How Google determines authority and rankings of websites in search Edgerank = Facebook’s version of page rank Open rate = The rate at which an email campaign emails are opened
Talking To InvestorsAbout Marketing
Investor Pro Tips Really know your numbers Never use ranges with your metrics If you don’t have the data, get it Talk about cohorts and how they are improving over time Sell your momentum
Acquisition Sources We have tested XX sources and know what works.We’re ready to XX our user acquisition efforts. Top Performing Channels: Email Facebook (Paid) Refer-A-Friend Worst Performing or Non-Scalable Channels: Daily Deals Adwords Grandma’s Bingo Team Recent Month’s Acquisition Sources
Final Pitt falls to avoid Doing too much discounting Acquiring bad customers/users High overhead low yield partnerships Pricey PR engagements