How to Create your Growth Machine

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@Thenextweb Conference
Dec 2nd, San paulo, Brazil

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The Growth Master
• Founder, CEO of DoRevolution and Growth
Mentor at 500Startups Silicon Valley,
Optimized $1B+ in Ads.
• Founder of SearchForce and pioneer to apply
Wall Street Analytics and Quantitative Trading
Techniques to Advertising for Portfolio
Optimization. Raised $10M+ in financing,
developed a Cross-Channel Optimization SaaS
Platform Based and took the company to
profitability.
• MBA in Brand Marketing from Cornell's Johnson
School of Business.

3. twitter @meetsa3mir
DoRevolution Growth Services
• Growth Marketing & Analytics
– Google Adwords
– Facebook Ads
– Mobile Advertising
– Retargeting
– SEO : On-page & Off-page
– Analytics: Google Analytics, Mixpanel,
Kissmetrics
• Growth Training Seminars for CEO’s, CMO’s
and Staff

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Moneyball for Growth

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How to Build a Growth Engine
• Scalable
• Repeatabl
e
• Predictab
le

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BOTS Take Over Social Selling

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Automate Visits to Profiles

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Profile Current & Clear Action

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Be Vanilla or a Gorilla
International Ice Cream Association the Top 10 flavours of ice cream in order are: vanilla,
chocolate, butter pecan, strawberry, neapolitan, chocolate chip, french vanilla and cookies ‘n’ cream.
Vanilla (#1) got approximately 28% of sales and chocolate (#2) got approximately 8% of sales.
The rest got 6% or less.
In this instance, being #1 makes you 350% better off than #2.

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Dave McClure Startup
Ecosystem
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• 1,000 Bootstrap Startups ($0-10K)
• = 1,000 Parents/Garages/Basements @ $0-500/mo food+rent
• 300 Accelerator Startups ($10-100K)
• = 10-20 Accelerators @ $1-5M/yr, 20-50 co’s/yr
• 100 Seed-Stage Startups ($100K-$1M)
• = 5-10 Micro-VC Funds @ $10-30M/yr, 10-20 co’s/yr
• 30 Series A/B Startups ($1-10M)
• = 3-5 Early-Stage Funds @ $25-100M/yr, 5-10 co’s/yr
• 10 Later-Stage Companies ($10-100M)
• = 2-3 Later-Stage Funds @ $50-250M/yr, 3-5 co’s/yr
• 1-3 Mature Company IPOs ($100M+)

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- McKinsey & Company

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- McKinsey & Company

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Growth Trumps all Metrics
• High growth companies return 5X more to
share holders
• Growth predicts long-term success
• SuperGrowers (growth rate >60%) when
reached $100M were 8X more likely to
reach $1B than ones <20% growth rate
• Growth matters more than margin or cost
structure. Increases in revenue growth rates
drive 2X as much market cap gains
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- McKinsey & Company

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Action
Grow Fast
or
Die Slow

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But Growth is Hard
• Law of Vanilla Ice-cream
• Rapid Evolution of Platforms
• Increasing precision brings
complexity
• Speed & Machines
• Lots of Money at Stake

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Platforms 2.0
Search, Social, Mobile,
Video, Messaging
$100M+ Users
~ Dave McClure

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A Zillion Ways to Acquire Users

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Hyper Inflation & Irrational
Bidders

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Efficient Markets

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Easy to Lose Money
It’s Complex.
Know if you
don’t know.

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SEO is not JUST SEO
~ Rand Fishkin, Wizard, Moz

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Unprecedented Complexity

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Action
Reflect on your
current
knowledge and
feel the gap

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Precision Marketing

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Action : A Historical Opportunity
Laser-Like
Precision
Marketing

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The Rise of the Machines

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High-frequency trading factoids

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High-frequency trading factoids

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Hedge fund Spent
$300M
to increase speed by
3 Milliseconds

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Billions at Stake
~ Rand Fishkin, Wizard, Moz

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Google Pays $500M for AI

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~ Rand Fishkin, Wizard, Moz

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Self-Aware Robots

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Elon Going to Mars

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You vs. (Machines +
Geniuses)
Do you
have
DataStars
on your
team?

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Actions
• Grow Fast or Die Slow
• Markets are hyper-competitive and inflated
• Companies are using Artificial Intelligence,
Math and Stats to gain competitive
advantage
• Companies are hiring the best and brightest
minds and paying billions for them. It’s the
TEAM stupid.
• Easy to spend money, hard to make money
• Bottom-line : Pay attention OR you will end
up in the dead pool.

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People
• Key
Qualities
• Quant
Skills

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9 Qualities of World Class Growth
Teams
• Possess Action-Driven Thinking
• Rapid Learners of Dynamically Changing
Marketing Channels and Growth Platforms
• Understand Growth Process
• Are Highly Product-Savvy
• Have a Hustle Mindset
• Possess a Cross-Disciplinary Skillset
• Connect Marketing to Product Development
• Possess Technical Acumen
• Hiring connections

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Platforms
• Data Use / Action Ninjas /
GrowthStack

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Data Storage & Retrieval

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How Big is your Data?

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PUKING

53. Traffic Acquisition twitter @meetsa53mir
Lead & Customer Acquisition
Market Research & User Feedback
Email Marketing
AB / Multivariate Testing
Competitive Research Tools Sales Intelligence

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Your Eyes are ‘Analytics’

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1. ACQUISITION
Homepage /
Landing Page
Product
Features
Website.com
Campaigns,
Contests
Emails &
widgets
Ads, Lead Gen, Biz Dev
Subscriptions, etc
SEO
SEM
Apps &
Widgets
Affiliates
Email
PR Biz
Dev
Campaigns,
Contests
Direct, Tel,
TV
Social
Networks
Blogs
Domains
Emails &
Alerts
System Events &
Time-based Features
Blogs,
Content
~ Dave McClure

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Process
• KPI’s
• Growthaly
tics
• Kaizen

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~ Brian Balfour

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Action
Establish Clear,
Quantifiable
Goals.
Think Attribution
Modeling.

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Customer Lifecycle
• Acquisition: users come to the site from various
channels
• Activation: users enjoy 1st visit: "happy" user experience
• Retention: users come back, visit site multiple times
• Referral: users like product enough to refer others
• RAAeRvReR!nue: users conduct some monetization behavior
~ Dave McClure, 500Startups

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Action
Think
Lifecycle.
Customer
Journeys.

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Framework

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Experiment
• Objective
• Hypothesis
• Design
• Resource Estimation
• Results
• Findings
• Action Items

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Action
You must
Breathe
Continuous
Improvement

69. twitter @meetsa69mir Establish Objectives and Key
Results (OKRs)
• Set your objective based on what’s going to
have the greatest impact on your business
right away
• Establish a timeline for testing
• Set multiple Key Results (KRs) based on
level of difficulty:
KR 1 – 90% chance of success. You did a good job.
KR 2 – 50% chance of success. You did a great job.
KR 3 – 10% chance of success. You hit it out of the park!

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Example -- Growth via Adwords:
Target : Lower their CPA for accredited investor signups
via AdWords without a significant drop in conversion
volume.
1. Focus on Search Network to drive lower CPA
2. Set timeline for 60 days
3. Three Key Results will be attempted:
• KR1 -- (90% change of success): Raise conversion volume by
10% by focusing on strategic bid modifications RLSA audience
lists.
• KR2 – (50% chance of success): Lower CPA by 20% by limiting the
keywords they buy to high performing terms only, and setting
location bid modifications by income-tier.
• KR3 – (10% chance of success): Lower CPA by 20% and raise
conversion volume by 10% by combining these two strategies.

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Action
Run Growth
Teams on
OKR’S.

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It’s the Questions that drive
Change
1. Do you have millisecond
strategy?
2. Have you identified a Growth
Team?
3. Do you run Growth as Risk &
Portfolio Management?

74. twitter @meetsa74mir
Samir Patel
samir@dorevolution.com
President & CEO,
DoRevolution
Growth Mentor
@500Startups
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