[500DISTRO] Shake, Mix, Stir, KABAM! How One Startup Grew from $0 to $360MM in 4 Years
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Transcript of [500DISTRO] Shake, Mix, Stir, KABAM! How One Startup Grew from $0 to $360MM in 4 Years
$0 TO $360MM IN 4 YEARS FLATHOLLY LIU, CO-FOUNDER & CHIEF OF STAFF AT KABAM@HollyHLiu
@HollyHLiu
@HollyHLiu
@HollyHLiu
@HollyHLiu
$360 MM
$180 MM
$30 MM
$0
2010 2011 2012 20132009
$360 MM
@HollyHLiu
@HollyHLiu
@HollyHLiu
@HollyHLiu
Non Scalable Growth Methods
• Forum / Group Posting• Contests• Blog Posts• Friends and family
@HollyHLiu
Important because…
• Product-market fit• Interact directly with customers
@HollyHLiu
Nail It. Then Scale It.
@HollyHLiu
@HollyHLiu
5-7%weekly
http://www.paulgraham.com/growth.html#f6n
@HollyHLiu
Scalable Growth Methods
paid acquisitionsales
SEOvirality
pipeline + team
BUYBUILD PARTNER
@HollyHLiu
Why?
• Feedback Loops• Easily repeatable – create a playbook• Do once and get massive audience
@HollyHLiu
Scalable Growth Methods
paid acquisitionsales
BUY
SEOvirality
BUILD
pipeline + team
PARTNER
@HollyHLiu
Build
@HollyHLiu
Focus Areas
• Acquisition• Retention• Engagement• Monetization
@HollyHLiu
Business Model• Advertising Business Model = Large audience
INSTALLS
conversions
invitesclicks
@HollyHLiu
Build
@HollyHLiu
Framework• Business Model: Advertising• Focus: Acquisition• Metrics:
@HollyHLiu
Metrics• Click-thru’s (link tracking)• Installs• Invites Sent• Conversions• DAU’s (Daily Active Users)
@HollyHLiu
Scalable Growth Methods
SEOvirality
BUILD
@HollyHLiu
BUY
@HollyHLiu
3 Things
• Market Opportunity• Team Capabilities• Passion Points
@HollyHLiu
Free-to-play
Freemium Microtransaction Business Model
@HollyHLiu
@HollyHLiu
Framework• Business Model: Free to Play (freemium)• Focus: Retention and Monetization• Metrics:
@HollyHLiu
Metrics• D1 Retention• D7 Retention• ARPU• ARPPU • LTV
@HollyHLiu
LTV(Average Order Value) * (Number of Repeat
Sales) * (Average Retention Time)
$10 * 12 months * 3 years = $360
@HollyHLiu
LTV - Starbucks(Simple LTV) * (Custom LTV) * (Traditional LTV)
Simple LTV = 52(a) * tCustom LTV = t(52 * s * c * p)Traditional LTV =m(r ÷ (1+i-r))
http://blog.kissmetrics.com/how-to-calculate-lifetime-value/?wide=1
@HollyHLiu
Success
Cost of Customer Acquisition < Customer Lifetime Value
@HollyHLiu
Scalable Growth Methods
paid acquisitionsales
BUY
@HollyHLiu
PARTNER
@HollyHLiu
content
platform
@HollyHLiu
Game Plan
• Partner– Content – Platform– Applications
@HollyHLiu
Content
@HollyHLiu
Platform
@HollyHLiu
Applications
@HollyHLiu
Metrics
• Organic Traffic • Tagging• Revenue associated with organics
@HollyHLiu
Scalable Growth Methods
paid acquisitionsales
SEOvirality
pipeline + team
BUYBUILD PARTNER
@HollyHLiu