We found 6 startups that are growing way faster than everyone else.

We figured out their unconventional growth tactics.

This thread walks you through how to repeat them for yourself.

THREAD: How to grow your startup through referrals, and word of mouth.

(Actionable tactics from working with 400+ startups)

Here's the truth: Your startup most likely won't make a video and go viral like Dollar Shave Club.

So instead of trying to "go viral," focus on acquiring customers through fans who already love your product.

There are 3 ways to grow through your current customers:

1. Product-led growth: Your product is built for sharing.

2. Word of mouth: Users proactively recommend your product to friends.

3. Referrals: You create an incentivized reward program.

Let's dive into each 👇

Product-led growth.

It's powerful: You don't have to artificially incentivize users to refer—you simply empower them & get out of their way.

E.g. To pay someone with PayPal, the payment recipient needs to first join PayPal—they're incentivized to sign up to receive their cash.

Product-led growth is possible when ppl use your app to:

• Transact or collaborate w/ others (PayPal, Dropbox, Zoom, Slack). These products are only effective when others use them with you.

• Create content intended to be shared w/ others (Twitter, Instagram, YouTube, Cameo)

THREAD: Read this if you're new to ads. Here's how to make each ad channel work.

E.g. Facebook, Instagram, Google, Snapchat, Pinterest.

(from our experience running ads for 400+ startups)

IMPORTANT. We're growth marketers. We believe that you should test most channels (in time). This is an 80/20 to help you prioritize which you might want to test FIRST based on your business.

2 types of ad targeting:

Behavior: Serves ads to people searching for your product. Better for conversion, but audience size is limited to ppl searching for you.

Profile: Uses social profiles/engagement to serve ads. Conversion is lower, but audience size is less restricted.

Top channels ordered by average cost/click for U.S. audiences (LinkedIn being most expensive)

1. LinkedIn
2. Twitter
3. Instagram
4. Facebook
5. Google Ads
6. Pinterest
7. Snapchat

We'll dive into each (and a few more)

LinkedIn offers uniquely granular company and employee targeting (firmographic targeting)

Clicks are expensive. Most companies won't be able to afford LinkedIn ads.

Good fit: B2B companies earning *thousands* per customer.

Poor fit: anyone earning < $10,000 USD in LTV

THREAD: How to get users to use your app 👇

Most SaaS apps lose 95% of new users within 90 days. That's insane.

They tend to lose those users during onboarding—when a first impression is made.

Here's how to avoid this.

After reading this thread, you'll know how to welcome users into your product in a way that motivates them into being lifelong customers.

Here's the 80/20 on onboarding:

Start by visualizing your user's journey toward experiencing value from your product—this is the reason users sought you out.

Then:

• Identify the obstacles that come up along the way
• Address those obstacles in your onboarding flow

How to identify obstacles:

Some obstacles will be known to you. They're onboarding steps that:

• Require a lot of work
• Are boring

Record these.

Other obstacles are hidden. To find them, observe users using your product:

• For SaaS apps: Record users' in-app activity using Hotjar
• For physical goods: Run a study. Watch customers use your product

User behavior reveals the NONobvious broken paths taken in onboarding

THREAD: How to improve your startup's conversion rate through A/B testing.

We've consolidated learnings from running 1000s of A/B tests for companies like Segment, Microsoft, and Tovala.

A/B testing = the science of testing changes to see if they improve conversion.

This thread covers:

1. Deciding what to A/B test
2. Prioritizing valuable tests
3. Tracking and recording your results

Testing makes or breaks growth.

We've worked with companies that were failing to convert their traffic.

But after three months of landing page A/B testing, they got traction.

The key: They continuously made their messaging more clear and their offer more compelling

Every day of the year, a test should be running—or you're letting traffic go to waste.

A/B testing isn't about striving for perfection with each variant. It's about iteration.

The A/B testing process

1. Decide on and prioritize high-leverage changes
2. Show some % of your visitors the change
3. Run it until you reach a statistically significant sample size
4. Implement changes that improve conversion
5. Log design/results to inform future tests

Here’s how to double conversion on your startup’s homepage.

(From rewriting over 1,000 websites.)

A thread 👇

1/ Your "above the fold" (ATF) section is the part of your site that's immediately visible before scrolling.

When visitors see this, they decide to either keep scrolling or bounce.

In seconds, they attempt to assess:

• What you do.
• Whether you're a fit for them.

2/ If your ATF is confusing or uninteresting, visitors bounce.

This happens because of:

1. Weak messaging: Your product's purpose is unclear, uninteresting, or irrelevant.

2. Weak design: Your design is unprofessional or outdated.

3/ There are 3 things you can change on your ATF.

1. Header
2. Subheader
3. Design

Let's dive into each.

4/ Headers need to:

1. Identify how users get value from your product.

2. Include a hook—to get them to keep reading.

3. Speak directly to your customer personas.

You can't pull the market towards your solution.

Markets move towards desired solutions naturally.

(Like folks lining up for ice cream on a hot summer's day).

Our ability to influence the market is much lower than you think.

It's better to build your product to conform to the direction the market is moving.

Before folks start mentioning Steve Jobs and the iPhone ("Steve built a product we didn't even know we needed!")

Nope.

Steve recognized the market's existing momentum and saw an opportunity.

"Everyone has a cell phone." (momentum)
"But nobody likes it." (opportunity)

Markets move towards solutions on their own; founders can't pull markets over to their solution.

If you're struggling to gain traction, you likely have a problem in your:

- market
- product
- channels

(or all three)

1/ Today I prepared for talking about common mistakes startups make (founding -> growth stages) by writing it in tweet form. I ramble too much when public speaking and hoped it would make the core ideas clearer in my mind and more concise. Think it worked. Here are the tweets

2/ Earliest mistake is picking the wrong co-founders. You have to be value-aligned (don’t have conflicting personal goals) and respect each other. With both of these, any other differences are irrelevant - can be worked out. Without them everything else you do is irrelevant.

3/ If you launch, next mistake is chasing top-line vanity metrics (sign ups) instead of growing the number of users who *really* love you. @paultoo advice - better to have 10 users who depend on you than 100 who a lukewarm. This requires patience and killing your ego.

4/ If you raise a seed round, it’s tempting to ignore retention. With money, there are always ways to grow top-line (buy ads, launch a new location). Strong fundraisers can do this for multiple rounds (though investors are more savvy to this now). Eventually, the bottom falls out

5/ Once you’re growing without churn, you find you have a diverse set of customers and can’t make them all happy -it’s easy to fail trying. Commit to a long term strategy for going public and build for the users who get you there, even if you lose the others. You have to focus.

If folks aren’t already buying what you’re thinking of selling, don’t start that business!

There should be be evidence that folks are already spending money in the space you’re thinking of entering.

Before AirBnB, folks paid money to stay at hotels, B&Bs, cottages, vacation homes, and hostels.

Annually, people spend $570 BILLION on travel accommodation.

Entrepreneurs need to follow the money:

“Where is it already being spent, and how can I get a piece of it?”

Don’t look for “problems that need solving.”

Look for categories where people/businesses are already spending money.

From an entrepreneur’s POV, if folks are willing to spend money on it, it’s a problem worth solving.

Apple has consistently followed this approach.

They didn’t make the first:

- PC
- Laptop
- MP3 player
- Smart phone

They saw the existing demand, and built on it.

1/ I recently read about Adjacent User Theory and, despite it being focused on expanding existing users. thought there were some great takeaways about prospecting.

2/ General concept is that just beyond your existing users are groups of potential users who would better adopt your product if it were positioned differently. As you expand your positioning, you convert under-engaged users.

In outbound sales it's the same.

3/ Too many startups try too hard to guess their exact prospect profile. This is necessary to find their first successful customer profile, but beyond that, identifying new types of prospects should be more formulaic.

4/ Here's how I've done it to identify 12 different successful prospect profiles in a few months:

- Use the 80/20 rule: 20% of the leads you reach out to should fall outside of your current core prospect profile.

5/ Priority should be on profiles with only 1-2 differences from the current core. Perhaps a slightly different pain point, but not dramatically different.

10 reasons why I think now is the greatest time to launch a startup

You should probably consider starting something

Just listen to this:

You can start with the community

I’ve identified ~8000 communities that could be unbundled from Reddit

- They are thriving
- They could make you ~$1m/year of revenue
- You often need $400 max to build MVP to tap that untapped value
- It's fun

Sounds like a dream job to me

People in Silicon Valley don’t have an edge on you

SF held the monopoly on startups for decades. Now, being in SF doesn’t matter for 99% of businesses

Don’t let anyone tell you otherwise

The world is flat and is staying flat

Hell yeah. That feels good to say

You have 10x the amount of funding sources

You used to have to rely on VCs. Not anymore

To name a few:

- Fund via your community
- Fund via NFTs
- Fund via pre-sales
- Fund via tokens
- Fund via accelerators all over the world
- Etc

All of a sudden, you have 10x the options

Niche businesses can be worth billions

People used to laugh at niche. Why “go small” when you could “go big”?

The way to go big right now IS to go small

Large tech companies can’t be everything to everyone