What are key strategies to acquire first 100K users with zero marketing budget?

What are key strategies to acquire first 100K users with zero marketing budget?

514marketing-budget

 

Sangeet Paul Choudary

By Sangeet Paul Choudary

Acquiring the first 100K users is an art. The strategies you apply on products with network effects (e.g. Facebook, Twitter, YouTube) are different from the strategies for product without network effects (e.g. Kayak, Fab). There’s only so much that can be included here so I’ll be linking to more detailed articles for further information.

If you’d like to read about this in detail, I’ve written an entire book on this: Platform Scale: How an emerging business model helps startups build large empires with minimum investment, which has been a #1 Amazon bestseller for several weeks since its launch. (Or get the first three chapters free at Main Page)

1) Create tools of self-expression which are really easy to use: No matter what your platform does, users should be able to create something there which they would want to spread. A user may not want to spread the word about your platform but would definitely want to spread the word about what she created on it. E.g. YouTube grows everytime a video goes viral because users personally invest in marketing it. This is marketing that scales with adoption and super-effective. Kickstarter and Change.org allow users to spread their cause to the whole world. Users are vested in marketing it. Forget gamification, forget viral design… there is no bigger incentive for users than the ability to spread their creations, beliefs and causes in a manner that wasn’t possible before.  (More athttp://platformed.info/hacking-y…)

2) Target a micro-market: Facebook’s early  users were at Harvard, Yelp’s early  users were the tech-savvy crowd of San Francisco, Quora and LinkedIn’s early  users were the VCs and startups of Silicon Valley. Find a micro-market which contains your early adopters. (More on how to do that at http://platformed.info/facebook-…)

3) Be the first to get onto a new user acquisition platform: There is a window when a new channel launches when users are still gullible enough to be harvested. Yelp did it with SEO, Zynga did it with Facebook. The same tactics don’t work when both the users and the channel get more sophisticated later on. A detailed analysis of this cycle at: False positives and the cycle of free user acquisition platforms

4) Steal: There are a lot of niche classifieds and ecommerce sites that compete with Craigslist. Quite a few of them started off by posting listings on Craigslist and directing the traffic to their site.  This article lays out a detailed process of how to succeed with that: http://platformed.info/yelp-crai…

5) Widgets: Be shareable and embeddable: Facebook sharing was great but users have, over time, become desensitized to what gets shared on Facebook. Instead, ensure that what gets created on your platform can get shared where your savvy users want to share it, namely on blogs and niche forums. YouTube got traction because MySpace users (musicians) needed a way to share videos and YouTube offered them a solution.  (More on this at http://platformed.info/destinati…)

6) Fake it till you make it: When users come initially to your platform and there’s nothing there, they see little value in using it. Platform usage requires investment; you set up a profile, you browse around… it takes time. Users won’t invest if they don’t see activity. Well, if there isn’t any activity, create some. Reddit did it. Paypal did it. A lot of marketplaces do it. Once you create some activity, more users start coming over. (More tactics on this athttp://platformed.info/seeding-y…)

7)  Piggyback on an existing network: Piggyback on a thriving network as long as your platform is contextual and complementary to that network.
StumbleUpon benefited a lot from being one of the first plug-ins on the Firefox browser. It was a natural complement to a browser which is essentially used to find information. It was one level of abstraction above Google’s “I’m feeling Lucky” if i could put it that way.
     Source: http://platformed.info/how-paypa…

8) Seed the community on standalone mode: Essentially, a user should be able to derive value out of the product even when other users aren’t on it.
A product that has standalone value irrespective of the network is more likely to get traction among at least one set of users.
Source:  http://platformed.info/seeding-p…

9) Design your product to align growth and engagement: E.g. when I post this answer on Quora, it allows me to broadcast it to my network. Posting the ansewr helps with engagement, the simultaneous broadcast helps grow Quora. A specific hack discussed in detail at http://platformed.info/growth-en…

10) Provide a service for producers that enables them to interact with their consumers: This is so obvious, it’s often ignored. Your producers already have consumers. There, that’s the solution to getting in more users for free. Loyalty startups like Shopkick also do something similar. Get the producers, get their consumers on the network, cross-promote other producers to these consumers. Rinse. Repeat.
Source: http://platformed.info/how-to-us…

11) Content marketing is amazing free marketing: Blog away like the guys at Buffer and Mint, and not about your product, just anything that your target market would want and that would make them want to explore the product.

12) SEO at scale: Ensure that whenever users create content, the permalinks are search-engine friendly. This is a great way to get users to market your product. Quora does this amazingly. Check the URL above. More at http://platformed.info/permalink…

13) If you’re building for user-generated content, ensure that users create good content and are appropriately motivated: Usually, only about 1-10% of your community actively contribute content. To keep creating value, you need to ensure you cater to their motivations. A primer on motivations: http://platformed.info/creative-…

14) Create organic virality, a product that spreads every time it’s used:
SurveyMonkey, EventBrite, MailChimp, and the original HotMail, are products that just have to be spread to be used. But even if your product doesn’t fall in this category, you can create features that show this property.
http://platformed.info/viral-loo…

For organic virality, ensure that there is a non-monetary incentive for users to spread the word. A guide to non-monetary incentives: http://platformed.info/incentive…

15) Focus on superconnectors: Remember, Branchout gained rapid adoption the day Michael Arrington downloaded the app. He had a large following on Facebook.

16) Build an invite list before you join: Nothing is as good as having a Launchrock-powered user base raring to hit your product on day 1. Here are the various ways you can build a market before you build a product: http://platformed.info/mint-stac…

17) Demonstrate immediate value for all users: Often marketplaces never have value when users visit in early days.. Groupon solved this by doing 2 things very well:

    • Solving for the buyer: Focusing on a specific transaction and attracting buyers to a current and live transaction rather than a (dead) marketplace with a potential for future transaction
    • Solving for the seller: Allowing the seller to back out if a minimum number of buyers were not achieved

     Source: http://platformed.info/groupon-c…

18) Make the two-sided network one-sided: Target a specific group which has both the consumers and producers of your service and where the lines between them blur. Even if they are two distinct types of users, the members of this group fulfill both requirements, or at least some of them do. This is important because the WOM required to spread the word among the producers simultaneously spreads the word among the consumers  as well since they’re part of the same group.
This is what worked for Etsy. People who make crafts typically like to buy from other craftspeople. This really helped them target exactly one group and spark transactions within that successfully before branching out.
Source: http://platformed.info/two-sided…

19) Provide access to new production infrastructure that the user would use even if the network was a ghost town: When Youtube started off, users didn’t care if there was a network of potential users, early users were happy enough to have a facility to host a video easily and embed it on their sites.
Source: http://platformed.info/how-to-us…

20) Be exclusive but be smart about it: Try starting with an invite-only beta. However, this is not a one size fits all as what worked for gmail didn’t work for google wave. More on how to make this work at http://platformed.info/exclusive…

21) Don’t try to change behavior for both consumers and producers: Consider the strategy of NFC players vs. Square.  NFC is trying to change behaviors at both ends by making the user pay with his mobile phone and making the merchant accept payments on a new terminal. In addition to the logistical challenge of proliferating terminals and getting NFC chips out, the chicken and egg problem becomes more difficult to crack as there is a barrier to usage for both parties. Square, on the other hand, introduces new behavior for SMBs (accept payments using your phone) but the consumer behavior remains the same (pay using the credit card). This was one of the reasons Square disrupted retail payments when everyone was expecting NFC to.
Source: http://platformed.info/payments-…

22) Get a marquee player or seed your own content: An extension to the above point, sometimes, signing up a top-notch producer can help draw consumers in, especially if you serve as an exclusive channel for that producer. Once consumers come in, other producers can be signed on and the network grows.
Source: http://platformed.info/apple-iph…

23) Remove barriers to product usage: Also known as “Build a great product”. Create a product that makes something that people want to do, but currently can’t do, extremely accessible to them. There are 5 different ways of doing this, explained in detail at How To Build A Great Product By Removing Barriers To Usage

24) Convert consumers to creators: Converting consumers to creators creates a nice feedback loop and keeps building value on the product. Here’s one of the ways of doing that: http://platformed.info/stack-ove…

Finally, since this answer is on Quora, here’s a quick look at the various growth hacks that Quora used to gain users for free: Growth Hacks of Q&A Startups

Apologies for the many different links. There was no way I could have put everything on this subject within this space. Also, I don’t know the specifics of exactly what you are doing or I could offer pointed feedback. But I hope this is helpful.

[Quora]

March 14, 2016 / by / in , , , ,

Leave a Reply

Show Buttons
Hide Buttons

IMPORTANT MESSAGE: Scooblrinc.com is a website owned and operated by Scooblr, Inc. By accessing this website and any pages thereof, you agree to be bound by the Terms of Use and Privacy Policy, as amended from time to time. Scooblr, Inc. does not verify or assure that information provided by any company offering services is accurate or complete or that the valuation is appropriate. Neither Scooblr nor any of its directors, officers, employees, representatives, affiliates or agents shall have any liability whatsoever arising, for any error or incompleteness of fact or opinion in, or lack of care in the preparation or publication, of the materials posted on this website. Scooblr does not give advice, provide analysis or recommendations regarding any offering, service posted on the website. The information on this website does not constitute an offer of, or the solicitation of an offer to buy or subscribe for, any services to any person in any jurisdiction to whom or in which such offer or solicitation is unlawful.