The Profitable Startup

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Post on 28-Jan-2015




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User growth and feature enhancements are the building blocks towards the early success of a startup, but as a startup becomes a company, it needs to be able to stand on its own. Monetizing a startup can be a harrowing and heart wrenching experience, since many companies put off these integrations until a product is established, leaving them with little choice but to resort to traditional monetization methodologies like advertising, since any model doesn't fit their current product state, but it doesn't have to be that way. Through working with thousands of startups within PayPal innovation programs and beyond, we have seen how early adoption of proper monetization methodologies can provide you with creative solutions for building a financial backing into your startup, without ever having to resort to hard selling your users to help keep you profitable; the same users who built your product to begin with. Exploring these principles, we'll see how essential creative monetization principles are towards building a strong backbone into a startup, helping it survive the trials of feature and user growth.


<ul><li> 1. The Profitable Startup Jonathan LeBlanc (@jcleblanc) Head of Developer Evangelism (North America) PayPal | Developer </li></ul> <p> 2. The Problem A Relentless Focus on User Growth 3. The Digital Revolution 4. Physical Costs Price of Goods Storage Shipping Returns Digital vs. Physical Goods Digital Costs a few bytes 5. The Problems with the Model Chargebacks and fraud Copyright owner concerns Tracking buyers 6. Preventing Fraud: Tracking Buyers Email domain type User browsing &amp; buying habits Manual review Device Fingerprinting IP to billing address location 7. More on Device Fingerprinting Browser characteristic Bits of identifying information 1 in x browsers with same characterists User Agent 12.01 4117.11 Browser Plugin Detail 6.8 111.13 Time Zone 21.6+ 3178409 Screen Size / Color Depth 4.56 23.58 System Fonts 21.6+ 3178409 Cookies Enabled? 0.44 1.35 Limited Supercookie Test 0.98 1.97 8. Mobile as a Primary Citizen 9. Working with the App Stores Any product that can be purchased from the app store needs to be Physical goods are ok Use a WebView Construct a wrapper the handle cross- device requests 10. Working with These Models Responsive, cross-platform HTML5 web applications Reduce the number of screens to checkout Use knowledgeable identity systems 11. Data Reduction with Identity 12. Identity to Remove Complexities 13. Creating with a Crowd 14. Crowdfunding vs. Group Funding Many people funding a single individual to perform an end action Many people funding an end action 15. Why Crowdfunding is so Hard Tracking money to its final source Vetting project owners Time to payment charge Handling chargebacks Very poor history of success 16. Group Funding Decisions Short term vs. long term money holding Direct payment to 1 person or auth /capture model? Who is responsible for chargebacks / refunds? 17. Building on a Data Backbone 18. An Old Addage "If you aren't paying for the product, you are the product" 19. Data Responsibility Personalize, dont abuse Anonymizing the data sources 20. The Problems with the Model Long time until the data becomes profitable Narrow data focus area means limited uses 21. Using our Building Blocks 22. Optimists consider that up to a 30% of ecommerce sales increase is thanks to cross-selling recommended products fikobservatory Personalized Recommendations 23. Changing Action to Intent Traits of the Bored Distraction Repetition Tiredness Reasons for Boredom Lack of interest Readiness 24. Thank You! Jonathan LeBlanc (@jcleblanc) Head of Developer Evangelism (North America) PayPal | Developer </p>