Don’t do growth hacking
Small businesses are jealous of startups. They grow fast. They gather millions of customers with growth hacking. Perhaps they don't know…
Small businesses are jealous of startups. They grow fast. They gather millions of customers with growth hacking. Perhaps they don't know, that most growth-hacking startups incur huge losses.
Snapdeal lost INR 4617 crore in FY17.
Paytm had incurred a loss of INR 1600 crore in FY16.
Real businesses should always avoid losses:
Businessman Buffet has a two point rule for real busiensses.
Rule No. 1: Never lose money.
Rule No. 2: Never forget rule No. 1.
What is growth hacking?
Samuel J Scott is a marketer. In his recent article he cuts through the bullshit of growth hacking. He writes that the core of growth hacking is to buy goods at say INR 100, and selling it at INR 75.
Some examples are...
Cash back offers.
Discounts to people to download their applications.
Continuous offers to use the product.
Why does it fail?
Businesses without profits are like a body without blood. There is a long list of international startups and businesses, which are loss making.
We Work
Buffer
Klear
Hubspot
Moz
Outbrain
Taboola
What should small businesses focus on?
Good old marketing works the best for long term goals. Knowing what current and prospective customers want, and delivering to them.
Don't hire growth ninjas, rockstars and social media gurus.
Work with professionals who can build real marketing and communications strategy.
Upgrade yourself or your key employees. Good online courses are available.
Worth your time: His deck on future of TV. It’s not dead.
Update 01: Know how Snapdeal is dying ?
Anrew Chen is a16z investor. He was head of growth at Uber for three years. He explained how paid marketing kills e-commerce.
Step 1: Paid marketing or cashback success is the gateway drug:
Step2: More sales, more profit, more funding
Step3: Diminishing returns
Step 4: And death
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