Maximizing Growth: Tips from Alex Schultz (How to Start a Startup 2014)
This article is a summary of a YouTube video "Growth with Alex Schultz (How to Start a Startup 2014: Lecture 6)" by Y Combinator
TLDR Retention and user engagement are crucial for growth in internet marketing, and companies should focus on optimizing their product market fit, identifying their North Star, and achieving viral growth through user invites and retention.
Retention is key for growth in internet marketing, analyze your retention curve to determine product market fit and focus on getting it right.
A physicist used dimensional reasoning to determine the power of the US atomic bomb, while calculating the energy of an atomic bomb requires determining the dimensions involved in the problem.
Having a clear North Star is crucial for growth, as demonstrated by Airbnb benchmarking against hotel chains and eBay's focus on gross merchandise volume.
Identify and connect users to the magic moment of your product quickly, optimize notifications for the marginal user, and focus on getting new users connected to at least 10 friends to improve growth.
Facebook's growth tactics included finding a niche market, internationalization, and focusing on getting users to add 10 friends in 14 days.
Viral growth is driven by high conversion rates, not high frequency or payload, and can be achieved by removing friction and avoiding creative exhaustion in online marketing.
Focus on user invites and retention to achieve virality and a high K factor for your product.
Email is less popular among young people, so it's important to avoid spam and ensure delivery for success with email, SMS, and push notifications.