Signup Quotes

What we had wasn’t so unique. People who were not on the same destiny signup sheet could still fall in love. We were prime examples. But what Noah and I had was so much more than love. It was attachment. A deep bond of trust and attraction that grew so slowly over time

Keep your own list, or get an account with an email newsletter company like MailChimp and put a little sign-up widget on every page of your website.

At this point in my life, I often fear it’s too late, as if there were a sign-up deadline for intimacy and friends and family and I just kept missing it.

Of the most successful startups, nearly everyone has a clearly identifiable marketing flywheel that brought awareness and traffic from the right audiences and helped those people convert to a sale or a signup at the right time.

I was so mad that because I am a woman it had fallen into my lap to organize the party, and also do everything else that created our children's lives: to buy clothes and make summer plans and babysitter arrangements and school deliverables and sports sign-ups and health forms...I'd never signed up for this role. All of my duties were assumed, no negotiation or divvying up of responsibilities, no questions asked.

The other question to ask is, if a user wants to reactivate, how hard is it? At Uber, we had a staggering statistic where several million users were failing their password recovery per week—how do you make this much easier, and treat reactivation with the same seriousness as the sign-up process? While reactivation is typically not a concern for new products—they should focus on new users, since their count of lapsed users won’t be large—for products that have hit Escape Velocity, there will be a pool of many millions of users to draw upon. Reengaging them can become as big a growth lever as acquiring new users.

We want to allow millions of small businesses to accept credit cards for the first time, so we have to make it easy to sign up. We need easy sign-up, so we have to design simple software and eliminate paper contracts. We have millions of people signing up, so we have to keep our customer service costs down. We need to keep customer service costs down, so we have to have simple pricing, and net settlements, and no hidden fees, and no paper contracts. We need to have a low price, so we have to save money on advertising, so we have to have an amazing product, and hardware so cool that people talk about it, and a product that they can explain without our help.

Let’s say experiment A is testing a small change, such as the color of the sign-up button. As results start coming in, it becomes clear that the increase in the number of new visitors signing up is very small—garnering just 5 percent more sign-ups than the original button color. Besides the obvious assumption that changing the color of the sign-up button may not be the key factor holding back new users from signing up, it’s also an indication that you’ll have to let the experiment run quite a long time in order to have enough data to make a solid conclusion. As you can see from the chart above, to reach statistically significant results for this test, you’d need a whopping 72,300 visitors per variant—or, in other words, you’d have to wait 72 days to get conclusive results. As Johns put it in an interview with First Round Review, “That’s a lifetime when you’re a start-up!” In a case like this what a start-up really ought to do is abandon the experiment quickly and move on to a next, potentially higher-impact, one.

#ExplosiveGrowthTip 7: A few fanatical customer advocates are worth more than hundreds or even thousands of casual signups. Fanatical users will supply word-of-mouth growth, while providing the necessary feedback to iterate on the product. Do you have at least twenty fanatical users or a plan to get them?

guiding users through a process quickly and easily is good for business, because the fewer people who get frustrated or confused, the more sales or sign-ups are completed. The problem, though, is that making interactions feel smooth and simple sounds nice, but it starts to fail as soon as you’re asking users for messy, complicated information. And as you’ll see in this chapter, all kinds of everyday questions can be messy and complicated—often in ways designers haven’t predicted. NAMING THE PROBLEM Sara Ann Marie Wachter-Boettcher. That’s how my birth certificate reads: five names, one hyphen, and a whole lot of consonant clusters (thanks, Mom and Dad!). I was used to it being misspelled. I was used to it being pronounced all sorts of ways. I was even used to everyone who looks at my driver’s license commenting that it takes up two whole lines. But I didn’t expect my name to cause me so many problems online. As it turns out, tons of services haven’t thought much about the wide range of names out there. So, on Twitter I forgo spaces to fit my professional name in: SaraWachterBoettcher. On online bill pay, they’ve truncated it for me: Sara Wachter-Boettch. In my airline’s online check-in system, hyphens straight up don’t exist. The list goes on. It’s irritating. It takes some extra time (do I enter a space between my last names, or just squish them together?). I see more error messages than I’d like. But it’s still a minor inconvenience, compared to what other people experience.

Unfortunately too much emphasis is still placed on two things: the aesthetics of the website and how to best drive traffic to it. Very little emphasis is placed on the actual visitors to the website and how well it engages and converts them for key goals like purchase or signup—in a nutshell, how well optimized the website is.

I’m just wondering if there’s some sort of spanking sign-up sheet being passed around.” Eliza took a testing sip of her drink and made a pleased sound at the taste. “I think it’s more of a conversation system.” “Your hand, my ass…let’s do this. That type of thing?” “Compelling, Caroline. I actually have goose bumps.” They traded smirks.

How am I supposed to pass this makeup if I’m studying with people who are as dumb as I am? I need you, Wellsy.” Wellsy? Is that a nickname? And how on earth does he know that my last name is Wells? I never told—argh. Damn sign-up sheet.

Dropbox, the cloud storage company mentioned previously that Sean Ellis was from, cleverly implemented a double-sided incentivized referral program. When you referred a friend, not only did you get more free storage, but your friend got free storage as well (this is called an “in-kind” referral program). Dropbox prominently displayed their novel referral program on their site and made it easy for people to share Dropbox with their friends by integrating with all the popular social media platforms. The program immediately increased the sign-up rate by an incredible 60 percent and, given how cheap storage servers are, cost the company a fraction of what they were paying to acquire clients through channels such as Google ads. One key takeaway is, when practicable, offer in-kind referrals that benefit both parties. Although Sean Ellis coined the term “growth hacking,” the Dropbox growth hack noted above was actually conceived by Drew Houston, Dropbox’s founder and CEO, who was inspired by PayPal’s referral program that he recalled from when he was in high school. PayPal gave you ten dollars for every friend you referred, and your friend received ten dollars for signing up as well. It was literally free money. PayPal’s viral marketing campaign was conceived by none other than Elon Musk (now billionaire, founder of SpaceX, and cofounder of Tesla Motors). PayPal’s growth hack enabled the company to double their user base every ten days and to become a success story that the media raved about. One key takeaway is that a creative and compelling referral program can not only fuel growth but also generate press.

That night we circulated sign-up sheets for a 24/7 prayer vigil.

Here are four examples of Lead Magnets I use: A checklist that can be used to properly perform something I explained in a video. A template for determining, say, a business’s profit margin. An advanced guide that goes further into the details of a subject of one of my videos. A unique book that provides substantial value but is offered for free. For me, it is 11 Side Hustle Ideas to Make $500/Day from Your Phone. The appropriate opt-in incentive depends on your content. Here are other types of examples: A DIY carpenter could offer plans to make a corner table. A marketing YouTuber could offer scripts of what to say on sales phone calls. A landscaping expert might offer recommendations for which kinds of grass to use around the United States. YouTuber Nick True at Mapped Out Money, who makes video tutorials that teach the best practices for using the personal budgeting software YNAB, found that he gets the highest sign-up rates when he offers a checklist that relates to the video. His followers really like having a resource that they can use to put his advice into practice. Jess Dante of Love and London runs a YouTube channel helping viewers plan their trips to London by suggesting lesser-known restaurants and stores to visit. Her superstar opt-in incentive is a free London 101 Guide with everything a first-time visitor needs to know. It’s been downloaded more than 45,000 times. Where you make your call to action will also have an impact on your success building your email list. You can make your call to action in a variety of places or ways inside your videos. One of the best ways is to give a short, relevant tease of the bonus or resource you’re offering within the YouTube video and tell people where they can learn more. CHALLENGE Create a Lead Magnet. It’s time to create your first Lead Magnet using the process we’ve just outlined above. You can use your piece of content from the previous chapter as a base or start something new. Don’t spend more than two hours on the first iteration. If you want to turn it into a big thing later on, great. But start SMALL. Go to MillionDollarWeekend.com to get Lead Magnet templates! (See what I did there?)

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The next day I ask Mr. Frank about extra help, and he points disinterestedly to the student tutoring sign-up sheet tacked to the bulletin board.

Yonomi   Yonomi rules are called "routines". I really like the user interface on the Yonomi app. As Yonomi is dedicated to automation on smart devices, they propose some specific services. When you signup, you can launch a discovery of your devices. It is way easier than checking each device available on the Yonomi platform to see if there is one you own. One of the other advantages of Yonomi was the ability to have several actions linked to one trigger but IFTTT recently did an update to propose the same features. Yonomi will have a simpler way to trigger routines than IFTTT. Because they have an Alexa skill, they let you use queries such as "Alexa, turn on [routines name]" or "Alexa, turn off [routines name]" which feels more natural than the trigger keyword from IFTTT.

Tip #2: Set Clear Expectations Beyond having the right message at the right time, this first one-on-one touchpoint can shape your customers expectations for how they’ll be treated overall – including expectations about the type of content they’ll receive and how frequently they’ll receive it. Forrester found 77 percent of consumers say they should be able to decide how, when, and where marketers communicate with them, yet according to Experian, 60 percent of marketers do not give customers the option to communicate their preferences. The sign-up confirmation

But a deeper transition affected people of color in this dazed context. Before course selections and extra-curricular sign-up sheets, before bags could even be unpacked in rooms, black students had to situate themselves within their own race. The process was complicated, conflicting, usually silent, highly fraught, and wholly invisible to their white classmates. Most of whom had never actively had to consider the role of race in their lives.

In 2009, the Twitter homepage attempted to boost motivation. But by 2012, Twitter had discovered that no matter how much users knew about the service, driving them to open an account and start following people resulted in much higher engagement. Recently, Twitter’s homepage has been modified slightly to encourage downloading of the company’s mobile apps (figure 17). The simplicity of the large sign-in or sign-up triggers on the 2012 version remain, but Twitter now knows that driving users to install the app on their phones leads to the highest rates of repeat engagement.

The miracle isn’t that I finished. The miracle is that I had the courage to start. —JOHN “THE PENGUIN” BINGHAM

The industrial world of pipelines relies heavily on push. Consumers are accessed through specific marketing and communication channels that the business owns or pays for. In a world of scarcity, options were limited, and getting heard often sufficed to get marketers and their messages in front of consumers. In this environment, the traditional advertising and public relations industries focused almost solely on awareness creation—the classic technique for “pushing” a product or service into the consciousness of a potential customer. This model of marketing breaks down in the networked world, where access to marketing and communication channels is democratized—as illustrated, for example, by the viral global popularity of YouTube videos such as PSY’s “Gangnam Style” and Rebecca Black’s “Friday.” In this world of abundance—where both products and the messages about them are virtually unlimited—people are more distracted, as an endless array of competing options is only a click or a swipe away. Thus, creating awareness alone doesn’t drive adoption and usage, and pushing goods and services toward customers is no longer the key to success. Instead, those goods and services must be designed to be so attractive that they naturally pull customers into their orbit. Furthermore, for a platform business, user commitment and active usage, not sign-ups or acquisitions, are the true indicators of customer adoption. That’s why platforms must attract users by structuring incentives for participation—preferably incentives that are organically connected to the interactions made possible by the platform. Traditionally, the marketing function was divorced from the product. In network businesses, marketing needs to be baked into the platform.

Create tabs with e-mail opt-in sign-up boxes. Go into Facebook and create another application tab that says “sign up to get special offers.” A

The Republicans want to frighten the voters into believing that the Democrats will sell out Israel and the United States. Selling this phony message is tremendously important to them as they get ready for the 2016 election. Domestically, their arguments against the Democrats are vanishing. Obamacare is increasingly popular as signups become more efficient. The deficit—the Holy Grail for Republicans—is shrinking. Unemployment is declining. All they can do is complain that Obama and the Democrats are surrendering to Islam.

Jason Billingsley recommends testing an individualized send schedule equal to the signup time of the unique user. So, if a user signs up at 9 a.m., schedule to send her updates at 9 a.m. “Most email tools aren’t set up for such a tactic, but it’s a highly valuable test that could yield significant results,” he says.

Creating Key User Segments The beauty with segmentation is that it can be used for more than email targeting. You can use your segmentation for tracking and reporting, to recruit candidates for interviews, and for quality assurance. If your segmentation doesn’t get you the right users, you want to find out as quickly as possible. Before starting to write emails, you’ll want to create key user segments. Those could be: people who haven’t signed up for your product (if the required data is available); people who signed up today; people who signed up in the last seven days; people who signed up in the last seven days, but didn’t engage, or didn’t activate; people who signed up in the last 30, 60 or 90 days and activated; inactive users; users whose trial is about to end or just ended and that you would eventually like to convert; paid subscribers in their first month; paid subscribers retained for two months or more; subscribers on annual plans; users who you think would be willing to refer your product to others; subscribers who cancelled; subscribers who cancelled more than once; or signups per specific acquisition channel. Don’t go too far, but do try to test real segments with real data. Let them run a few weeks. Do users flow through the way you’d expect them to? Go through random profiles in each of these segments and compare with the data from your database. Are those the users you’d expect to find in each of these segments? Any issues? You want to uncover issues with the implementation or your segmentation as early as possible. It’s easier if you do this—and much less costly in terms of mistakes—before you start sending emails than after. Make sure you can track users across different segments and that your segments truly are mutually exclusive when they need to be. Identify issues, adjust, and refine. This step will save your team a lot of headaches later on. As you test your segments, make them available to the rest of your team. Your colleagues can also help point out issues. At this point, if there aren’t any major issues, your setup is complete. Let’s get started sending some emails!

Prioritizing Your Email Roadmap Chances are you’ll need a Hail Mary. And a Net Promoter Score survey email. And a newsletter. And… And… And… If you are getting started with your email program, the list of emails you’ll need will probably be very long. Do you need to do everything at once? Definitely not. In fact, it’s best to start your program by aligning with business priorities and getting results before thinking about expanding. What areas are most troublesome in your business right now? What metric are you expected to move with email? Is it: Engagement? Retention? Conversion? Revenue? Signups? If none of those stick out above the rest, start from the top. Welcome and onboarding emails set the tone for product usage. Better onboarding and value communication lead to reductions in churn and disengagement down the road. Welcome and onboarding emails are also sent to most, if not all, of your users, thus they have a greater potential to influence user behaviors. At Highlights, for example, we set up a welcome email, five onboarding emails, and an upsell email the week before we launched the product. The goal was to maximize the number of people in a position to convert. It also allowed us to start getting some data to optimize performance. In general, you’ll want to prioritize emails that: send a lot (large volume of sends); send consistently (every day, or every week at least); and have the potential to have a big impact on a key business goal. In the beginning especially, you want to make sure that you have a clear goal or metric to monitor with the aim of evaluating performance with user data. Start implementing a first sequence, test, gather data, and move on to the next sequence.

LOW: Sales Effort Sales effort is a measure of the length of your sales cycle and includes the number of touch points required to make the sale. Where CAC measures the amount of money you’re spending to get a new customer, sales effort measures the time and energy you’re spending. The best way to track sales effort is to look at both the average number of days from someone scheduling their first demo to closing and the number of calls it takes to close a deal. Your ability to keep sales effort low depends greatly on your industry and customer base. If you’re doing enterprise sales, your sales cycle will be long and require more effort than if you’re targeting solopreneurs and other small businesses with a single decision-maker. A three- or four-month sales cycle is reasonable in enterprise sales—and worth it because the ACV might be $50,000. If you’re spending that much time for $5,000 contracts, though, that’s rough. No matter what your sales process looks like, you want your sales effort to be as low as possible. Here are some ways to lower this number. Self-Serve Sign-up and Onboarding. Many inexpensive products can get away with low price points because they have a low-touch or no-touch sales process. They have a self-serve sign-up and onboarding process, which requires almost no sales effort. The higher your ARPA, the less likely they are to become customers without some sales effort. But finding places to offer self-service along the journey can reduce the amount of hand-holding your team has to do while making the process speedier for your customer. One-Call Close. Self-service isn’t going to work in a lot of spaces, but you can try to get to a point where the decision is made by a single person. You can do this by targeting a founder, a developer, or a single manager. You can also streamline the back-and-forth of providing more sales materials, getting on second calls, waiting for input from the committee—and on and on. Educate your customers as much as you can ahead of time so they have the information they need and develop checklists to gather the information you need to close the deal quickly.

How Should I Structure My Pricing? Pricing is the biggest lever in SaaS, and almost no one gets it right out of the gate. Fortunately, you don’t need a PhD to structure your pricing well. Like most things in SaaS, finding the right pricing structure is one part theory, one part experimentation, and one part founder intuition. I wish I could tell you a single “correct” structure, but it varies based on your customer base, the value provided, and the competitive landscape. Most founders price their product too low or create confusing tiers that don’t align with the value a customer receives from the product. On the low end, if you have a product aimed at consumers, you can get away with charging $10 to $15 a month. The problem is at that price point, you’re going to be dealing with high churn, and you won’t have much budget to acquire customers. That can be brutal, but if you have a no-touch sign-up process with a product that sells itself, you can get away with it. Castos’s podcasting software and Snappa’s quick graphic design software are good examples of products that do well with a low average revenue per account (ARPA). You’ll have more breathing room (and less churn) if you aim for an ARPA of $50 a month or more. In niche markets—or where a demo is required or sales cycles are longer—aim higher (e.g., $250 a month and up). If you have a high-touch sales process that involves multiple calls, you need to charge enough to justify the cost of selling it. For example, $1,000 a month and up is a reasonable place to start. If you’re making true enterprise sales that require multiple demos and a procurement process, aim for $30,000 a year and up (into six figures). One of the best signals to guide your pricing is other SaaS tools, and I don’t just mean competition. Any SaaS tool a company in your space might replace you with, a complementary tool or a tool similar to yours in a different vertical can offer guidance, but make sure you don’t just compare features; compare how it’s sold. As mentioned above, the sales process has tremendous influence over how a product should be priced. There are so many SaaS tools out now that a survey of competitive and adjacent tools can give you a mental map of the range of prices you can charge. No matter where your business sits, one thing is true: “If no one’s complaining about your price, you’re probably priced too low.

So, you’re not available to tutor then?” He drew his brows together slightly as if confused by my response. It wasn’t like I was speaking in tongues here, guy. I needed a tutor, he was on the sign-up sheet for tutors. Where was the confusion?

New users were asked to import their email contacts to invite more people. After each connection request, users were shown screens of even more suggestions. New users who appeared in other people’s contacts—even if they skipped importing it themselves—had suggested connections right after sign-up.

Sign-ups for Faire are Saturday at 10. Can I count on you to help out as usual? Of course, I texted back immediately. Wouldn’t miss it! Thank you. You’re great at recruiting the adults. I know.I couldn’t hide my smirk as I tapped out my reply. I got Emily on board a couple years ago, after all. I’d been the one to shove a clipboard in her hands and gently break it to her that if her niece Caitlin wanted to be in the cast, then Emily had to be too. The rule was barely enforced, but to my surprise Emily hadn’t dropped out, as most well-meaning parents did.  She’d been dedicated, and after some initial clashes of personality with Simon, she’d become pretty dedicated to him too. You did, Simon texted back. There was a pause as he kept typing. Been meaning to thank you for that. I grinned at my phone. Simon was not an effusive guy; for him that was practically a squee. See you Saturday morning. I’ll be there an hour early.

This experience isn’t so different for software businesses. Two excitable cofounders work on an app, submit it to Product Hunt, and see thousands of sign-ups on the first day. A few months later, no one is using it, and they’re on to a new project. Rinse and repeat. But businesses are not something you engage with once, talk to your friends about, and then forget as you move on to the next thing. Your business should have customers for life, not just for a Friday night. That’s because the real story of starting and then growing a business isn’t really that thrilling most days. Between start and success, it can be a slog. It can take years. And it often isn’t nearly as glamorous as you expect. But you will have many small victories, and over time they will build into a sense of satisfaction and pride that comes from not giving up.

Learn All About The Benefits of Conversion Rate Optimization for Websites? A conversion rate tells the percentage of the users who finished the desired action, the desired action can be the completion of any web form, sign up, or purchase of any products, etc. The process in which a website and its content are enhanced to generate conversion is known as Conversion Rate Optimization (CRO). This process helps a business to increase the number of high leads, increase income, decrease the purchasing cost, gain valuable customers, and most importantly, provide business growth. conversion-rate-optimization A website can obtain many benefits from the Conversion Rate Optimization Strategies. We have discussed some of these benefits below. 1. Homepage A homepage does not only play the role of making the first impression on the website visitors. But it also is a great opportunity to attract more visitors and take them further into your website. This can easily be done by adding links to your product's information on the homepage, for instance, having a free sign-up option or adding a small chatbox on the homepage to ask questions from the website visitors during their browsing time. These strategies can be considered as Effective Conversion Optimization Strategies that you can use for your website. 2. Landing Pages The landing pages play a great role in obtaining visitors to your website. These pages guide the visitors to purchase products or services from you. For example, a page is describing a product and also has a link to the webpage where you can purchase the product. So, CRO strategies help increase your website conversions and business sales. 3. Blog A blog can be a big opportunity for the conversion of a website. Apart from publishing useful content about your industry, you can also add your product page links in the blogs. This process can invite blog visitors to learn more about your business and products also guide them to make a purchase on your website. With this approach, you can generate leads through your website blogs. Moreover, blogs can play an important role in describing your business. Conclusion The conversion rate optimization strategies are helpful for online businesses. It assists the companies in attracting customers to their websites. CRO is a great way to increase your business lead generation and success. You can get help from the Conversion Rate Optimization Services Providers. They will inform you about different strategies that you can follow to improve your website lead generation.

The Spotlight Framework 1. User Experience Issues ​● ​ How do I ...? ​● ​ What happens when ...? ​● ​ I tried to … 2. Product Marketing Issues ​● ​ Can you/I ...? ​● ​ How do you compare to ...? ​● ​ How are you different than ...? ​● ​ Why should I use you for/to ...? 3. Positioning Issues ​● ​ I'm probably not your target customer … ​● ​ I'm sure I'm wrong but I thought ... Using this framework, we can see that a question like “How do I integrate this with Trello?” fits into the user experience category. Because clearly the customer already knows that the integration is possible. It’s not a discoverability thing. They’re not asking if it’s possible, they know that it’s possible, they expect that it’s possible, but they just don’t know how to get it done. In contrast, customers could be asking, “Hey, can you guys integrate with Trello?” or “Can I integrate this part of your app with Trello?” Once again, the important part to focus on here is not the Trello part, it’s the “Can you ...?” or “Can I ...?” And what that tells you is that you have some level of product marketing issue. Because if you can integrate with Trello, the fact they’re asking you that and that they don’t know means that they weren’t educated properly along some part of the sign-up or getting-started path. (It could’ve been a features page on the website where it wasn’t clear, or it could be that you need to do a better job of calling it out inside of the product.) So that’s how I think about user experience issues vs. product marketing issues. But there’s also a third category in my framework: Positioning. Positioning issues are when someone gives you feedback, and they’re usually trying to be nice, and they’ll say something like, “I’m probably not your target customer, but ...” Now, if you know that person is your target customer, there’s probably something wrong in your positioning that’s leading them to believe they’re not a good fit.

Finding the Competitive Levers When there’s a battle between two networks, there are competitive levers that shift users from one into the other—what are they? The best place to focus in the rideshare market was the hard side of the network: drivers. More drivers meant that prices would be lower, attracting valuable high-frequency riders that often comparison shop for fares. Attract more riders, and it more efficiently fills the time of drivers, and vice versa. There was a double benefit to moving drivers from a competitor’s network to yours—it would push their network into surging prices while yours would lower in price. Uber’s competitive levers would combine financial incentives—paying up for more sign-ups, more hours—with product improvements to improve Acquisition, Engagement, and Economic forces. Drawing in more drivers through product improvements is straightforward—the better the experience of picking up riders and routing the car to their destination, the more the app would be used. Building a better product is one of the classic levers in the tech industry, but Uber focused much of its effort on targeted bonuses for drivers. Why bonuses? Because for drivers, that was their primary motivation for using the app, and improving their earnings would make them sticky. But these bonuses weren’t just any bonuses—they were targeted at quickly flipping over the most valuable drivers in the networks of Uber’s rivals, targeting so-called dual apping drivers that were active on multiple networks. They were given large, special bonuses that compelled them to stick to Uber, and every hour they drove was an hour that the other networks couldn’t utilize. There was a sophisticated effort to tag drivers as dual appers. Some of these efforts were just manual—Uber employees who took trips would just ask if the drivers drove for other services, and they could mark them manually in a special UI within the app. There were also behavioral signals when drivers were running two apps—they would often pause their Uber session for a few minutes while they drove for another company, then unpause it. On Android, there were direct APIs that could tell if someone was running Uber and Lyft at the same time. Eventually a large number of these signals were fed into a machine learning model where each driver would receive a score based on how likely they were to be a dual apper. It didn’t have to be perfect, just good enough to aid the targeting.

But this can also be part of the fun. At Beautystack, we built a simple chatbot form collector for our sign-up process. I absolutely hate filling out forms online, so I wanted to use tech to create a better service where my clients didn’t have to suffer in the same way.

To make these loops actionable for product teams, you can break them down into more granular steps, and A/B test them. For example, Uber’s viral loop for drivers involved a referral program that was exposed during the onboarding process. There were a dozen or so screens on the app that a driver moved through during the sign-up process—entering their phone number creating a password, uploading their driver’s license, etc. Each of these steps could be optimized so that more users would pass through. Then, drivers would be presented with an explanation on how to refer their friends, and what type of bonus they’d get for doing so. This could be improved as well—should the message offer $100 to sign up, or $300? If you invite five people should you get a bonus? Should an invite mention the name of the inviter, or just focus on Uber, as an app? On the sign-up page, should you ask for a driver’s email or their phone number, or both? A product team can brainstorm hundreds of these ideas and systematically try them, measuring for conversion rates and the number of invites sent. Optimizing each of these steps with A/B tests might only boost each step’s conversion by 5 percent here or 10 percent there, but it’s a compounding effect. Hundreds of A/B tests later, the millions of dollars you might be spending on acquiring customers is made substantially more efficient.

Measuring the Acquisition Network Effect To increase the Acquisition Effect, you have to be able to directly measure it. The good news is that viral growth can be rolled up into one number. Here’s how you calculate it: Let’s say you’ve built a new productivity tool for sharing notes, and after it launches, 1,000 users download the new app. A percentage of these users invite their colleagues and friends, and over the next month, 500 users download and sign up—what happens next? Well, those 500 users then invite their friends, and get 250 to sign up, who create another 125 sign-ups, and so on. Pay attention to the ratios between each set of users—1000 to 500 to 250. This ratio is often called the viral factor, and in this case can be calculated at 0.5, because each cohort of users generates 0.5 of the next cohort. In this example, things are looking good—starting with 1,000 users with a viral factor of 0.5 leads to a total of 2,000 users by the end of the amplification—meaning an amplification rate of 2x. A higher ratio is better, since it means each cohort is more efficiently bringing on the next batch of users.

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Furthermore, for a platform business, user commitment and active usage, not sign-ups or acquisitions, are the true indicators of customer adoption. That’s why platforms must attract users by structuring incentives for participation—preferably incentives that are organically connected to the interactions made possible by the platform. Traditionally, the marketing function was divorced from the product. In network businesses, marketing needs to be baked into the platform.

PayPal’s big challenge was to get new customers. They tried advertising. It was too expensive. They tried BD [business development] deals with big banks. Bureaucratic hilarity ensued. … the PayPal team reached an important conclusion: BD didn’t work. They needed organic, viral growth. They needed to give people money. So that’s what they did. New customers got $10 for signing up, and existing ones got $10 for referrals. Growth went exponential, and PayPal wound up paying $20 for each new customer. It felt like things were working and not working at the same time; 7 to 10 percent daily growth and 100 million users was good. No revenues and an exponentially growing cost structure were not. Things felt a little unstable. PayPal needed buzz so it could raise more capital and continue on. (Ultimately, this worked out. That does not mean it’s the best way to run a company. Indeed, it probably isn’t.)2 Thiel’s account captures both the desperation of those early days and the almost random experimentation the company resorted to in an effort to get PayPal off the ground. But in the end, the strategy worked. PayPal dramatically increased its base of consumers by incentivizing new sign-ups. Most important, the PayPal team realized that getting users to sign up wasn’t enough; they needed them to try the payment service, recognize its value to them, and become regular users. In other words, user commitment was more important than user acquisition. So PayPal designed the incentives to tip new customers into the ranks of active users. Not only did the incentive payments make joining PayPal feel riskless and attractive, they also virtually guaranteed that new users would start participating in transactions—if only to spend the $10 they’d been gifted in their accounts. PayPal’s explosive growth triggered a number of positive feedback loops. Once users experienced the convenience of PayPal, they often insisted on paying by this method when shopping online, thereby encouraging sellers to sign up. New users spread the word further, recommending PayPal to their friends. Sellers, in turn, began displaying PayPal logos on their product pages to inform buyers that they were prepared to honor this method of online payment. The sight of those logos informed more buyers of PayPal’s existence and encouraged them to sign up. PayPal also introduced a referral fee for sellers, incentivizing them to bring in still more sellers and buyers. Through these feedback loops, the PayPal network went to work on its own behalf—it served the needs of users (buyers and sellers) while spurring its own growth.

for a platform business, user commitment and active usage, not sign-ups or acquisitions, are the true indicators of customer adoption. That’s why platforms must attract users by structuring incentives for participation—preferably incentives that are organically connected to the interactions made possible by the platform. Traditionally, the marketing function was divorced from the product. In network businesses, marketing needs to be baked into the platform.

The permission slip outlined our agenda for the day: aquarium, lunch, planetarium, museum. The trip was in eight weeks, just before Thanksgiving break. Mr. Ted went over every detail piece by piece, but no one was really listening. Everyone was blabbing about how lucky we were that we didn’t get stuck with a boring trip to the state capitol. I was busy thinking about the Dog Log and tearing the chaperone sign-up portion from the bottom of the paper so I could get rid of it.

To make matters worse, those especially intimidated by the complexity of the sign-up process are often the neediest. In Delhi, widows and divorced women living in poverty are entitled to a monthly pension of Rs 1,500 (or $85 PPP, adjusting for the cost of living), a substantial amount for these women, but take-up is low: a World Bank survey found that two-thirds of eligible women were not enrolled in the program.4 One reason may be the application process, which involves a complex set of rules most people would not understand or be able to navigate.

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It must be fully recognized that the murderous SS men and women were not drafted or forced into the SS service. They were full-fledged volunteers. In fact, every Axis-country citizen was eligible to sign-up for the SS — so long as he/she was certified as being trustworthy by known Nazis. The legitimate DP groups were deeply distressed that the vast majority of SS personnel successfully

Evernote’s CEO Phil Libin shared some revealing insights about how the company turns non-paying users into revenue generating ones.[xxiii] In 2011, Libin published a chart now known as the “smile graph.” With the percentage of sign-ups represented on the Y-axis and time spent on the service on the X-axis, the chart showed that, although usage plummeted at first, it rocketed upward as people formed a habit of using the service. The resulting down and up curve gave the chart its emblematic smile shape (and Evernote’s CEO a matching grin). In addition, as usage increased over time, so did customers’ willingness to pay. Libin noted that after the first month, only 0.5 percent of users paid for the service; however, this rate gradually increased. By month 33, 11 percent of users had started paying. At month 42, a remarkable 26 percent of customers were paying for something they had previously used for free.

the “smile graph.” With the percentage of sign-ups represented on the y-axis and time spent on the service on the x-axis, the chart showed that, although usage plummeted at first, it rocketed upward as people formed a habit of using the service. The resulting down-and-up curve gave the chart its emblematic smile shape