According to Bill Gurley, Madhavan Ramanujam is “to monetization strategy what Bob Marley is to reggae music.”
Madhavan insists that most companies go wrong because they leave setting a price for their product until after the product has been developed and built. Then they wonder why no-one wants their product, find it too expensive or end up making a loss because they’ve under-priced.
The smart approach he says is to talk to customers first, find out what they value most, set a price accordingly and then build what they want, value and will pay for. Nothing more, nothing less.
In this excellent article Madhavan explains “why pricing is so paramount from the get-go and the four ways companies often trip up when trying to monetize. He also shares the three guidelines that startups should follow in order to properly design and price their products.”
Measuring Customer Success
Customer success is about helping customers derive as much value from the product as possible. This article argues that driving success for your customers results in success for you. Who’d have thought it! Three ways to measure: 1) Churn – 3 types, 2) Expansion revenue, 3) Customer satisfaction – 2 types. And benchmarks for each. EXCELLENT
You Don’t Need A Masterplan
Bryce Roberts reminds us that not every everything has to be a billion dollar idea that changes the world. He goes on to point out in fact that most startups that have ended up billion dollar companies did not start out with that as the goal. “Starting something in the hopes of making an extra $1,000 a month is every bit as worthy as trying to colonize Mars. Start small and give your ambitions room to grow.” HERE. HERE.
47 Facebook Ad Tips
Having trouble getting your Facebook ads to work? Check out these tips from Karola Karlson at KlientBoost. I’ve spotted several I’m going to put into practise very soon. NICE
A classic rant from DHH from last year. “Nobody these days is content to merely put their dent in the universe. No, they have to fucking own the universe. It’s not enough to be in the market, they have to dominate it. It’s not enough to serve customers, they have to capture them.” And, “The web is the greatest entrepreneurial platform ever invented. Lowest barriers of entry, greatest human reach ever. Examine and interrogate your motivations, reject the money if you dare, and startup something useful. A dent in the universe is plenty. Curb your ambition. Live happily ever after.” TOO DAMN RIGHT
Customers Trump Investors
As private market funding slows, generating income from customers rather than investors is becoming mandatory. The good news is that positive cashflow brings control over one’s own destiny as a founder. SOLID
Funding absolutely make sense. Sometimes. Ash Rust talks through some tactics to instil a sense of FOMO (fear of missing out) in your target investors. NICE
Majority World Report 2016
UK entrepreneur and investor, Saul Klein has a slide deck on the role of tech & entrepreneurship in a post-Brexit Trump world. GREAT
Banking Becomes Tech
All this talk of APIs by non-techies makes me laugh. Seriously it’s not new. An Application Programming Interface is how some software can interact with some other software. Period. Still, the extent to which this is happening between banks and third-parties is changing fundamentally. Where a bank begins and ends will no longer be clear. This will enable huge new opportunities for consumers, fintechs and banks. GOOD
Machine Intelligence Players
Shivon Zilis and James Cham have been tracking and categorising startups in AI for two years. They lay out their findings in this article. GREAT
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