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Performance & Growth

13 Tricks for Landing Your First Thousand Customers

Getting the first 1,000 customers will not guarantee your success, but it will you give you a chance to get some real-world feedback – and maybe even pay some bills at the same time.

Jeff Foster

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Getting the first 1,000 customers will not guarantee your success, but it will you give you a chance to get some real-world feedback – and maybe even pay some bills at the same time!

As a startup, your biggest challenge is to get customers on board and getting the first 1,000 always takes the most work. You’re still learning what works while building up repeatable processes that scale.

Getting the first 1,000 customers will not guarantee your success, but it will you give you a chance to get some real-world feedback – and maybe even pay some bills at the same time!

Related: How to Calculate the Lifetime Value of A Customer

Here are a few tips on how to reach this goal:

Set up a waiting list

A waiting list is a great way to build early buzz as people always want to be first in line for a new product. This works extremely well for online services and mobile apps, particularly if you offer incentives for people to sign up, such as a free account for three months.

Mobile apps_mailbox

Look at the masterly work of Mailbox, which managed to build up a huge waiting list of over 800,000 people.

Their secret? They used a clever user interface to tell people how many others were in front of them and how many were behind them in the line to use the app. This addictive interface gave people a hit of dopamine each time they checked the app and saw they were closer to the front.

Use your personal network

Traditional word of mouth is still powerful way to get new customers on board. Tell your family, friends and colleagues about your product and ask them to spread the word.

Don’t be shy – there’s nothing wrong with asking for a favour. If you have a consumer-focused product, there is no easier or quicker way to get your first 30 customers than just asking people you know!

Target online publications

Just like bloggers, online publications can help you reach a huge new audience. Pick one or two relevant publications that make sense for your business. Spend time selling them on your product and offer them something unique, such as exclusive coverage of your product launch.

A great tip is to follow journalists on Twitter for a while and get a sense of the type of content they write. Then you’ll find clever ways to connect your product to a theme that interests them. Attentiv did exactly this, and got a great launch story in Fast Company.

Get bloggers on your side

Bloggers and other online influencers have huge audiences. Even better, their readers trust them.

Reach out to bloggers on sites such as mine Tomoson and ask them to review your product. You can drive huge numbers of new prospects this way.

Online reviews can often keep on driving sales for years into the future, as people track them down in search results. Even small blogs can often drive hundreds of sales over time, particularly when the review is thoughtful and well written.

Related: Get Your Customers to Buy More Stuff

Build suspense

Suspense is an excellent way to build excitement before you launch. Create a drip feed of information about your upcoming product. This will make people curious and want to know more – particularly if you reveal the details a little bit at a time.

The more you give away, the less interesting it becomes. Try to get people excited, but without giving so much context that people are bored and move on.

Work with early adopters

Your first customers are the most important. They bought your product for a reason, so you can learn a huge amount from them. Create a personal relationship with them and listen to what they say.

You’ll get great insights you can use, and they’ll tell other people about your product. Early adopters usually have smart opinions about products and have a good sense of the market, so always be sure to pay careful attention to them.

Create high-quality content

Content marketing is a great way of acquiring new customers. By creating genuinely useful content and giving it away for free, you can drive visitors to your site and also establish yourself as a thought leader. If you have the budget, hire a good writer.

Buffer CEO Leo Widrich managed to get 100,000 customers just from writing guest posts on other people’s sites. Those same articles will still be delivering hundreds, maybe thousands, of new customers each month – with no additional effort.

Offer a free product option

Many successful online startups use a “freemium” model to get users on board. This lets people try your product with no risk, which can encourage them to sign up for the paid service or product. However, make sure you strike a balance. Don’t cripple your free option, but keep enough back to make people want to upgrade.

Dropbox is one example of a product that gets this right, giving you enough free storage to get you invested in its ecosystem and invite your friends to join and collaborate. Before you know it, your Dropbox is full and you’re handing over your card details.

Incentivise customers to sell your product

Customers can be your best salespeople – they already know the value of your product. Give them a reason to get other people to sign up, and you can drive impressive growth.

You can even make this work with a “freemium” model: offer a free upgrade to your paid service for three months as an incentive.

Related: Bonding With Your Customers

Speak at conferences

It may seem a bit old school but speaking at conferences is an excellent way of getting exposure and customers for your new startup. Become an expert on your subject, and then contact event organisers and offer to speak. Just make sure to get in touch early, as conference agendas are usually locked down six to 12 months before the event.

Neil Patel spoke at 239 conferences and discovered that the best strategy is to avoid speaking to your peers and speak to potential customers instead.

If you’re an SEO, for example, don’t go to an SEO conference where everyone is already an expert in what you do. Instead, go to a gambling event and show them how to get new customers. In the case of Neil, this led to a $100,000-a-month contract.

Online advertising

Online advertising can be an effective way of driving traffic to your startup’s website. It doesn’t have to be expensive – $1,000 with Google AdWords can go a long way.

If you don’t have experience with this, then hire a pro: keyword selection and ongoing optimisation are incredibly important.

Test, test and test again

Once you do start to drive significant traffic to your website, then it’s time to focus on converting visitors into customers. Many different factors can affect your conversion rates – ranging from website design to pricing. Try out different things and see which ones work best. For example, you can use Google Analytics Content Experiments to try out different landing pages.

Affiliate marketing

Affiliate marketing is where you get other websites to promote your products in return for a commission on sales. This typically works best for information products, such as online courses, because you can offer affiliates high commissions without any product cost. There are sites that make this easy – such as Rakuten Affiliate Network, Commission Junction or ClickBank.

This article was originally posted here on Entrepreneur.com.

Jeff Foster is co-founder and CEO at Tomoson, the influencer marketplace. The platform allows bloggers and social media influencers to get paid for posting sponsored content, and lets businesses connect with targeted, niche audiences.

Performance & Growth

Why You Should Do Things That Won’t Scale In Your Early Start-Up Days

Unless you want to be a small-business owner with a lifestyle business, you’re probably looking for an idea that scales – something that allows you to 10x your customers and profits in record time – but how do you accomplish this? Here’s some counterintuitive advice.

GG van Rooyen

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In the early days of Airbnb, when the site had just a handful of hosts in its website, the founders of the company did something surprising: They offered to have the accommodation hosts were offering professionally photographed for free. As they didn’t have the money to actually pay professional photographers, they did this themselves. They showed up, introduced themselves and took some pictures.

In the world of Silicon Valley, this seemed absurd. Silicon Valley is all about scaling. You want an idea that’s easy to expand exponentially. For instance, the marginal cost of adding a single user to Facebook or Dropbox is small, which makes these companies extremely scalable.

Service businesses, meanwhile, are typically not very scalable, since they are limited by the time and energy you can physically put in. Every new client brings more complexity and demands more time and resources.

Related: Has Your Business Stopped Growing? Here’s How To Turn Things Around

With their free photography, the Airbnb founders had turned an Internet start-up into a service business. There was no way you could scale this kind of behaviour, so, according to the dominant Silicon Valley philosophy, this was not worth doing. If this was what was required to sign up people on Airbnb, it could never be a success.

The manual approach

So, why did the founders do it? Because Paul Graham at the famous Silicon Valley incubator Y Combinator suggested that they do it.

Y Combinator has funded many, many successful start-ups (including Airbnb and Dropbox), and one of its most common pieces of advice to new start-ups is to do things that don’t scale. Recruiting users manually is not a failure or proof that your concept won’t scale. Most of the time, it’s simply a necessity.

“The most common unscalable thing founders have to do at the start is to recruit users manually. Nearly all start-ups have to. You can’t wait for users to come to you. You have to go out and get them,” says Graham.

“This can’t be how the big, famous start-ups got started, they think. The mistake they make is to underestimate the power of compound growth. We encourage every start-up to measure their progress by a weekly growth rate. If you have 100 users, you need to get ten more next week to grow 10% a week. And while 110 may not seem much better than 100, if you keep growing at 10% a week you’ll be surprised how big the numbers get. After a year, you’ll have 14 000 users, and after two years you’ll have two million.”

Surprise and delight

Another reason, according to Graham, why the manual approach is important, is because it allows you to really know and understand your customers. By visiting all those Airbnb hosts, the founders quickly learnt what they loved and hated about the service.

Related: SME Leaders: How You Can Manage Growth

By doing things that don’t scale, you get a much greater understanding of your customer, which comes in handy once you’re ready to flip the switch and grow quickly.

“You should take extraordinary measures not just to acquire users, but also to make them happy. Your first users should feel that signing up with you was one of the best choices they ever made. And you in turn should be racking your brains to think of new ways to delight them,” says Graham.

Lighting the fire

The only opportunity you’ll ever have to thoroughly engage with all your customers on a personal level is when your business is still small. That’s why it’s important to do things that don’t scale early on. It creates the foundation for successful scaling.

“Sometimes the right unscalable trick is to focus on a deliberately narrow market. It’s like keeping a fire contained at first to get it really hot before adding more logs. It’s always worth asking if there’s a subset of the market in which you can get a critical mass of users quickly,” says Graham.

“Most start-ups that use the contained fire strategy do it unconsciously. They build something for themselves and their friends, who happen to be the early adopters, and only realise later that they could offer it to a broader market.”

You can read Graham’s entire blog post, Do Things That Don’t Scale, on his blog www.paulgraham.com.

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Performance & Growth

3 Ways To Promote Business Growth In A Troubled Economy

If you’re running a small business, here are three things you can do to survive and thrive in this tough economic climate.

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It’s a complicated time for South African business owners. According to Xero’s State of SA Small Business 2017 report, 62% have seen a reduction in consumer demand over the past year, and 68% describe economic instability as their most significant challenge. Of course, these problems that entrepreneurs face are not of their making, but they must face them nonetheless.

There is a degree of optimism amongst entrepreneurs which is encouraging: 45% anticipate that business will stay the same over the next year, and 40% expect growth. While this positivity is a good thing, it must be tempered with pragmatism and proactivity.

Related: 3 Strategies To Implement A Culture Of Innovation In Your Business (Without Blowing Billions)

If you’re running a small business, here are three things you can do to survive and thrive in this tough economic climate. 

1Look for cost savings

This is very obvious, but it’s worth repeating. When your business is contending with an ailing economy, it will be forced to make certain choices. Those choices can become more or less difficult depending on how you manage your incomings and outgoings.

Developing the firmest possible handle on your finances is the best defence against external turmoil.

Look for cost savings wherever you might find them. What subscriptions are you still paying for that you no longer need? Which supplier relationships need to be terminated? Are you spending too much on stationery? Aim to eliminate all unnecessary costs: Even if they’re small, they’ll often add up to a larger cumulative saving.

Technology can often help with this process. For instance, cloud accounting software like Xero can take care of financial administration and cash flow related tasks – identifying any areas of discrepancy or waste and ensuring that your resources are being used efficiently. Taking advantage of it is likely prudent. 

2Automate everything

automation

And we mean everything.

Businesses that waste time, waste money. The more energy expended on manual processes and tasks, the less time you have available for vital business or operationally critical processes and tasks. It’s very hard to grow if you’re spending inordinate amounts of your day on repetitive, time-consuming work.

Related: How You Can Profit From Constrained Consumption

When it comes to things like report preparation, data entry, and accounts payable and receivable, it’s worth investigating your automation options. Things like pursuing invoices can now be done with a click of a button and a few strokes of the keyboard. What’s more, they can be handled safely, legally, and efficiently.

Don’t stop there. See what other tasks can also be automated. When you have more time, you have more headspace for the things that really matter to you and your company. 

3Spend wisely

Although it shouldn’t be a rule during trying economic times, it becomes substantially more important during times of unrest. It’s easy to spend money on hires and gadgets in a blind panic, but it’s also dangerous – and can deepen any financial troubles you may have.

Any investment you have, no matter how trivial, should be thoroughly audited for potential profitability. If it won’t help you make money or become more efficient, it shouldn’t be pursued. If there’s a greater than acceptable chance of making losses, save the risk for a time when your business is more profitable.

Related: Has Your Business Stopped Growing? Here’s How To Turn Things Around

Knowing what is and isn’t a sensible investment isn’t always easy. Cloud technology can again be of use here. if you’re considering investing in service desk software, it can generally let you know if the number of resolved queries will result in meaningful cost savings. If you invest in a marketing automation tool, it will let you know if your campaign ROI is likely to exceed the expense.

Navigating the choppy waters of the modern South African economy won’t be easy, but by implementing the above, it will be more than manageable. With financial prudence, process automation, and strategic investment, you can come out the other side even stronger than before.

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Performance & Growth

How You Can Profit From Constrained Consumption

There’s an art to giving new markets access to products that were previously unavailable to them – and growing your business as a result.

Matt Brown

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The ambition to disrupt markets with new innovative products and services is on the rise. This is especially prevalent in Silicon Valley, where entrepreneurs love to talk about disruption  —  though few understand the term.

There is an important distinction between efficient, sustainable and disruptive innovations  —  namely that instead of making products better or more affordable, disruptive innovations give a market access to a product that was previously unavailable to them. Enter constrained consumption.

Constrained Consumption

African consumers are aspirational by nature. The challenge, however, is that the man in the street has to overcome barriers and constraints to achieve their aspirations. If these constraints can be accurately identified by entrepreneurs and brands, they have a huge opportunity to capitalise on them.

Related: Common Mistakes SMEs Make When Looking At Growth Opportunities

The Disruptive Opportunity

When it comes to making a true dent in the world ,  perhaps the biggest opportunity for disruptive innovations lies in emerging markets, where examples of constrained consumption can be found everywhere you look . This represents fertile ground for entrepreneurs and brands to disrupt markets and create monopolies around new innovative products and services.

This opportunity is compounded by the impact of ‘the rising billion’; the estimated three to five billion people who will connect to the Internet for the first time by 2020.

7 Consumer constraints that require innovative solutions that will allow you to access new markets, carve a niche for yourself and grow your business.

Unpacking Constrained Consumption

business-constraints

Below are just a few examples of constrained consumption, and how entrepreneurs and brands can take advantage of them.

1Wealth Constraints

Arguably one of the most common addressable constraints in emerging markets is the wealth constraint. Smartphone adoption in emerging markets is largely constrained by the affordability of smartphone devices. The world’s cheapest Android smartphone (the Freedom 251) by Indian company, Ringing Bells, is a disruptive product that removes this constraint even in remote areas where some consumers earn below $10 a month.

2Access Constraints

There are more people in Africa with access to mobile phones than clean drinking water. The same can be said when it comes to electricity access. In many instances, the ability to charge a mobile phone is restricted, and sometimes non-existent.

The $5 wind-powered phone charger for bicycles, developed by a sixteen year old Danish student, is a disruptive innovation that addresses the access constraint in a simple and DIY fashion.

3Complexity Constraints

If a technology product is complex by nature the technology adoption curve by users is often extended. There are some who argue that the launch of the smartphone has extended the technology adoption curve,  not shortened it.

The reality is that if a complex feature of a smartphone can be transformed into something simpler, and then provided to the constrained users, the technology adoption curve can be shortened or removed. MTN has done this by enabling feature phone users in Africa to access tweets from Twitter via SMS.

4Educational Constraints

South Africa’s population is currently around 55 million people, but, according to 2015 statistics, only 550 127 full-time learners took the National Senior Certificate (NSC). What if this status quo could be disrupted through peer-to-peer video streaming technology, such as Meerkat/Periscope?

By enabling lessons to be streamed to a broader set of remote students, educational barriers could be substantially removed. It could also disrupt the underlying business model, with educational institutions creating an additional revenue stream by charging 25% of the normal tuitional fees to remote students (subscribers).

Related: [PODCAST] Brent Tollman – How To Sell More Using Story Telling And Video

5Health Constraints

The simple act of getting to a medical healthcare professional or doctor is often out of reach for many Africans. The connection of doctors to patients in a remote and digital context can remove this barrier. While the commercial model won’t work in Africa, given its price points, iCouch.me is a Web app that pairs users with healthcare professionals who typically charge between $65 and $90 for 50 minutes of video chat time.

A solution like this would disrupt the entire value chain through partnerships with companies, hospitals, and insurance companies.

6Banking Constraints

The lack of banking infrastructure has seen disruptive mobile banking solutions launch across Africa. Most notable is mPesa in Kenya and EVP Plus in Somalia, but more start-ups are entering financial services with disruptive innovations. Why does this matter?

Access to affordable financial services is linked to increasing economic growth, reducing income disparities, and alleviating poverty. But in most emerging markets, access is limited by high fees, product constraints, and lack of trust. The Barclays Accelerator start-up, GetWala, is on a mission to bring digital banking solutions to emerging markets.

7Funding Constraints

For many start-ups and small businesses in emerging markets, the lack of funding is often a primary barrier to growth. The rise of crowdfunding and social funding has solved the funding dilemma of many start-ups. But the emerging opportunity lies with the traditional institutions and today’s modern disruptive companies. Barclay’s Africa has recently launched its own accelerator and is in the process of opening up its business model to disruptive innovators. Even WeChat Africa has announced its own seed fund for promising mobile start-ups.

Future-proof your business

Disruptive companies that put innovation at the heart of their culture are future-proofing their businesses, and the importance of culture generally increases in proportion to the competition in the market.

Success and profit are largely dependent on the right culture mix. Spotting constrained consumption is just the first step towards realising a disruptive ambition and a pre-cursor to creating a dent in the world as we know it.

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