I don’t know a ton of important people. But as a founder of a venture-backed startup with some amazing investors and advisors, I do know a few.
With Nivi and Naval preaching the gospel of social proof (can I get an “amen”?!) and with fundraising posts and articles espousing the importance of introductions, it’s no surprise that about once a week someone asks me to introduce them to someone else. It’s especially common around Y Combinator Demo Day, where YC groups shift from pure product mania to fundraising mode. I’m pretty sure that YC tells new crops of startups to ask for introductions from the funded companies from previous sessions.
What does surprise me is how people ask for these introductions. Here’s pretty much how they usually read:
“Hey Tony. I’m [insert name] from [company name]. We’re starting our fundraising effort and I was wondering if you’d introduce me to [insert RescueTime investor/advisor].”
I usually will make the introduction, but the person asking for it is certainly not making the most of the opportunity (and asking me to spend my social capital by doing so). So after making a mess of these introductions in varied ways, here is my suggested checklist for making an introduction (it’s pretty much my reply when I get a request like the one above):
All that said, if you’ve got a great investment opportunity (with a launched product and some happy users), don’t be shy about dropping me a line if I can help (with introductions or advice).
(post scriptum: If you are in the market for introductions, you should check out VentureHacks’ StartupList!)
My startup (RescueTime) has enjoyed some pretty ridiculously good PR (online, print, and video). It’s not a surprise that the most common questions that we get from other founders are about PR. How do you get press and the blogosphere talking about your product?
When you research this topic, you’ll see lots of technical and how-to articles that talk about how to build relationships with writers, how to use services like PRweb, how to format a press release, and more. In a lot of ways, this reminds me of SEO (search engine optimization). Research SEO and you’ll find a bunch of articles about page markup, link sculpting, meta descriptions, and all sorts of other mechanical processes. But what you won’t find much of is information that teaches you how to write great content and how to build your startup and features (from the ground up) with “linkworthiness” in mind.
Just like fabulous content solves 75% of your SEO problems, fabulous storytelling solves 75% of your PR problems.
I think there’s a lot of built-in contempt for PR and marketing among entrepreneurs (especially hacker-flavored entrepreneurs). We’ve all been in companies with fat communications budgets wasted by blow-hard marketeers, so many of us have dismissed the profession altogether. We’re so entranced by the concept that just building something people want will win the day. I remember cheering the first time I read the quote, “marketing is a tax you pay for being unremarkable“. I remember reading a statement on Hacker News that said, “my code speaks for itself“. Two years ago, I would’ve said, “Right on, brother! Preach it!”
But my mindset has shifted about 180 degrees over the past few years. I now believe that how you say something is at least as important as what you’ve built. The A/B testing and design/copywriting iteration that we’ve done over the past year (which has, over time, resulted in a 400% increase in conversion rate on our site) really has driven home this belief. What’s A/B testing if not a bunch of microscopic marketing/PR tests?
What you need to send to reporters and bloggers
If you’re reaching out to reporters and bloggers, you put yourself in the shoes of that person. They are looking to write a headline that causes readers to buy a magazine/paper or click on a link. They are looking to write a story to support that headline that causes readers to consume that content and (ideally) find the content so provocative (note that “provocative” can be VERY different from “valuable”) that they send the link to their friends and relatives, post it to Twitter, and write a supportive (or critical) write-up on their blog.
If you can truly empathize with a writer, you fairly quickly realize why your new social bookmarking app, web annotation service, or small business accounting app isn’t particularly newsworthy. You aren’t click-bait. You aren’t link bait. You aren’t going to sell a paper.
Which is why your most important problem from a PR point of view is this: How can you make your uninteresting (to a broad audience) company interesting?
The good news is that it’s quite do-able. If at all possible, read Made to Stick by the Brothers’ Heath. If you can’t read it, read this summary. If you can’t do that, just try to craft a story that succeeds in as many of these areas as possible:
(notice how low “useful” is on the list? That’s not an accident. You have to be REALLY useful to be worth talking about.)
A boring company with good storytelling skills can do some amazing things on this front. Off hand, I can name a company that sells shoes online that did pretty well on the PR front, a personal finance app that a lot of people talked about, and a creator of small-business project management software that people can’t stop linking to. If you want to see smaller/earlier successes, check out Balsamiq or UntitledStartup (both are doing some clever things out of the gates).
So if you tell your product’s story at a party (which you should, over and over!), watch the listeners eyes. Do they glaze over? Or do they light up? Do they laugh? Do they argue with you? Do they ask questions? If a you’ve never had a listener at a party say, “wait a minute– John over there would LOVE to hear about this… Let me grab him!”, then you probably aren’t ready to work on the mechanics of outbound PR. If at the end of your story, the listener doesn’t often say, “Can you tell me that URL one more time?” as they reach for their smartphone, then you need to keep working on your story. Because charging forward on outbound PR with a shitty story is pretty much the equivelant of working on your SEO mechanics when you know you have crappy content. Your’e ignoring the most important part in favor of the least.
Post Scriptum – On the Value of PR
Having enjoyed pretty great PR success, I wanted to throw out a final thought. Like a lot of accelerants (marketing and funding being two other examples), PR can be like throwing gasoline onto a fire. Or it can be like throwing gasoline on a pile of wet wood. It can be especially exciting if your business is enjoying growth already. But PR (and, more broadly, your startup) is a marathon, not a sprint. The first couple times you get a PR hit, you’ll quite likely be flummoxed by the fact that your traffic and usage doesn’t really change that much as a result. TechCrunch might get you 5-10k uniques. Being in the print version of the New York Times might get you a few thousand uniques. PR is not going to result in a viral/word-of-mouth explosion, but it’ll speed things up nicely if you’ve already got one happening.
As Andrew Chen says in one of his many fabulous posts (why bloggers and press don’t matter for user acquisition), if you’re going to spent time on marketing and PR, spend it on things that will pay ongoing dividends rather than 1-time dividends. Andrew was talking about stuff like viral loops and SEO, but in my opinion he missed the most important marketing “gift that keeps on giving” – crafting and tweaking a story that makes you worth talking about.
When I decided to take a weekend and focus on my blog I realized one big thing:
Most blogs are crappy products. And most of my favorite bloggers (the ones that espouse taking design, marketing, testing, and iteration have largely blown off the designs of their blogs To be clear, I think the quality of the blog is almost entirely measured by the quality of the content and not the theme. But blog success is a function of content quality and the ability to turn readers into people who retweet, comment, subscribe, or follow.
Success (whether it’s a blog or a product) is looks a lot like this:
Quality of Product * Success of Marketing * Conversion of visitors = Success
Certainly, outstanding bloggers (or outstanding products) can win on just quality of product. Some of my favorite bloggers (let’s single out Paul Graham (though I think he’d call himself an essayist), Dave McClure, Andrew Chen, and Eric Reis) have blog formulas that look like this:
(great writing = 10) * (great word of mouth marketing = 7) * (no clear call to action, no testing = 1) = 70 (pretty darn successful at expanding their influence)
(Note: McClure might get a -1 for too many font colors!
)
My hats off to all of ‘em. They are better (and more prolific) writers than I. But we all know that a little A/B testing can go a long way. We’ve seen that a quick/dirty redesign of an already effective looking page can pump conversion by more than 20%. Hell, we’ve seen that a few iterations of Twitter language (leading to “you should follow me on Twitter”) can boost clickthru by 173%. Could a weekend’s (largely outsource-able) work double a visitor’s chance to become a follower/subscriber, comment, or even read a second post? If you’re starting point is a stock blog theme, I think so.
Here’s what I think you should do on a blog to maximize the 3rd part of the forumula above (and, to a lesser degree, the second part):
Now maybe you could argue that a blog shouldn’t be treated this way. Maybe we’re all blogging to express our feelings, hone our writing skills, and be part of the conversation. That’s fine if that’s true. But look at the degree to which blogging has been instrumental in the careers of folks like the ones I’ve mentioned (as well as Fred Wilson, who says much of his deal flow is because of his blog) and it’s pretty hard to argue against trying to make your blog an effective funnel. Hell, at least spend a few hours and pluck the low-hanging fruit.
At the end of the day, every web site is a funnel and most blogs are pretty damn leaky. Take a weekend and plug some holes.
In the past two months I’ve been on two different panels with other entrepreneurs. The first was at WTIA in Bellevue, WA (“Cashing in on Web Services“)– the other panelists were very clearly what I’d call “business entrepreneurs”. All of them had relatively successful funded startups, but not a one of them had probably written a line of code, moved a pixel, wrangled a server, or written a line of copy in months or years (some probably never had).
In contrast, the most recent panel I was on (at the O’Reilly Web 2.0 Summit) was with what I’d call “builder entprepreneurs”… All startups with great traction, some funded, but all of the founders were directly engaged with the creation of the product. They designed, coded, played sysadmin, and played all sorts of other production roles for their startups.
The contrast was startling, and it made me think hard about my earlier contention that the “business guy” doesn’t really have a useful role to play in the very earliest stages of a software startup. The first panel had a pile of examples of business guys leading startups to some significant (sometimes dramatic) success.
At one of the other panels at the Web 2.0 conference, Dave McClure (master of 500 hats and 473 font colors– and one of the smartest guys in the game) summed up the life-cycle of a startup in a great way. “There’s the product development phase, the market development phase, and the revenue development– or revenue optimization– phase.” Rings true to me.
So with this in mind, let’s track the value of a “product entrepreneur” over the early life of a company:

Now let’s track the value of a “business entrepreneur” over the early life of a company:

(note: I’m talking about one person’s ability to make a major impact with a startup– I’m not saying that either person is useless at any stage of the startup… And, of course, exceptions abound)
As I’ve said before, the business guy often doesn’t have a lot to do in the early stage of product development– especially if the builders are building something that they actually want themselves. If you’re a bunch of hackers building a simple photo sharing, you don’t need a business guy telling you what the market wants. Of course, if you’re a bunch of hackers building business time management software, you might well need that. Your mileage may vary.
But what I haven’t said before (and what I’m coming to learn) is that the product entrepreneurs have an increasingly marginal role as a startup evolves and becomes more successful. In fact, I’d argue that they are in a rude awakening– they either need to evolve into business entrepreneurs (as Gates and Jobs did, for example– both shrewd business guys) or hire people to play that role (a la Eric Schmidt at Google). Building an asset is the first (and most important) challenge. But finding the customer for that asset and maximizing the revenue/profit is also a challenge (and one that many builders are ill-suited to handle).
It feels like product entrepreneurs are oftentimes “cowboys”. Flying by the seat of their pants, they rally a small team to build a product that people want. It’s no surprise that this is really freakin’ hard and requires a mythical combination of brute force time and effort, insight, customer empathy, and a huge pile of luck. Saddling the product team with a biz guy who chases big customers and locks in the product direction too early can be deadly, as the Wizard points out:
This is one reason I hate to see very early stage companies sign a big customer before the product is baked. You are encumbered by product commitments and customer support before you truly know what the market wanted. You have to be passionate about a customer and the product when you should be laser focused on the product. The customer’s needs and your goals vis a vis the market may diverge. In an effort to show progress, however, the marquee customer is attractive in the belief it will help attract investment (and this may indeed be true). In a previous life before FeedBurner, my founders and I made the mistake of signing a big name customer to a paid monthly contract before we really knew what the product’s place in the market should be. Won’t ever do that again.
The product development phase of company needs product development people and precious little else.
But as the market development phase sets in, builder entrepreneurs are oftentimes increasingly obsolete. It’s no longer time to hurl features willy nilly at your users– you’ve already built something that they like. No you need to measure the hell out of it and turn it into something that they love. You need to iterate on it and turn it into something that confuses 4% of your new users instead of 7%. It means finding a way to tune your viral loop and conquer your SEO enemies to increase the organic flow to your product. And you need to start expoloring the market to figure out who they hell is going to pay for all of this. That means crafted adwords campaigns. That means cold calling. That means price experimentation. That means exploring the world of direct ad sales. Well, it can mean all sorts of things, depending on whether you are a free web service, a freemium product, a pure b2b play or some combination thereof.
But you are firmly out of the world of building products and drifting into the world of iterating a product and exploring a market. And, likely, you’re in the world of sales, marketing, and instrumenting the hell out of your app/site.
As Papa PG says, if you look at the leaders of successful tech companies you see more CS degrees than you see MBAs. That makes sense– geeks are critical to conquer the first (and most important) problem of a startup… Building a badass product. But if you look at these same tech companies, you see CS geeks who’ve actually set aside their geeky roots (though maybe not their geeky instincts) and become very very shrewd business guys. And you also see inferior products kicking the crap out of superior products through better sales/marketing/and distribution.
So to all of you builders out there… Beware! When you reach a challenge in the evolution of your business, the most natural thing in the world is to frame it as a product problem. “If we just build this new feature/product, we’ll be off to the races and we’ll never have to do any of that business crap!”. Keep your eyes peeled for the time when you have to personally evolve and start tackling business problems, or step out of the way and let someone else do it for you.
Christian Anderson (a former colleague at Jobster) had an interesting (and well-researched) post on his blog called “How to Pitch Robert Scoble — HINT: No Direct Tweets“… , which led to a discussion on FriendFeed (with Robert himself weighing in) that was pretty interesting.
I had a contribution bouncing around in my head but held off responding until I read an absolutely fabulous quote from one of my favorite books on marketing:
““No one ever got anywhere by lavishing calls on Oprah. The only time I’ve succeeded in my career with Oprah was [when] Oprah called us.”
— Barry Krause, in Made to Stick
This advice can be generalized to getting PR, blog coverage, angel and VC interest, and more… And can be summed up in one tight little phrase: “Be worth talking about.”
So how do you get to be worth talking about? Redirect every bit of outgoing energy you’re spending on getting noticed to being worthy of notice. Near as I can tell, this isn’t just a matter of building something great… It seems to be some arcane combination of:
I’ll finish with a great quote from Seth Godin on “grand openings“:
“The best time to promote something is after it has raving fans, after you’ve discovered that it works, after it has a groundswell of support, [ed: and after you've figured out how to effectively talk about it]. And more important, the best way to promote something is consistently and persistently and for a long time. Save the bunting for Flag Day.”
I can’t help but think that the startup world is a bit drunk on the concept of viral distribution. Distribution is a huge problem for startups, so I suppose that I can’t blame them.
First of all, I want to point out that I think viral distribution freakin’ rocks. It’s amazing. It’s awe-inspiring. If you can build virality into your app, do it– and do it early. What I’m focusing on in this post is when a startup is presented with a choice of “viral or value”. Either in the very earliest days when deciding what idea/problem/space to pursue (“We really love this idea, but this OTHER idea has soooo much inherent virality!”), or when making choices about features and initiatives in your startup (“THIS would make our users happy, but THIS would really bring in the new eyeballs!”). While we all like to go on about all of the hats we wear as entrepreneurs, it’s damn hard to be maniacal about making your users happy AND be investing time and energy in distribution.
So, as I watch myself continue to back-burner features at RescueTime that have viral/SEO potential, it occurs to me that it’s probably worth running through my thoughts on WHY. Thus this blog post. You can run through my thoughts with me.
“It’s easier to build a great business on top of an existing viral engine than it is to build virality into an existing business”
This was said to me by a hacker who was working with a team on a “stealth viral business”. At the time, I found myself nodding. You can’t throw a rock in Silicon Valley (or Seattle) without hitting a startup that has tried to staple on a viral loop to their application or service. “I know!” Manager X says. “Let’s add a tell-a-friend bucket to our app. And we need to widgetize it. Oh, and we should probably make a funny video about it! Then we’ll explode!” It turns out that viral loops are HARD.
But, as I think about it, I can name something that’s a LOT harder, and that’s building a product that people really want. In fact, I can fairly readily name off a long list of Facebook Apps and widget companies that have, with fairly minimal effort, built apps that are viral. I can’t as easily name off companies that have created great products that people love over a long weekend of coding. Products are HARD. Virality is, comparatively, much easier.
Another point to illustrate this– Top Facebook Apps are hemmoraging active users (some have lost 30-40% from peak). Presumably, these app creators are alarmed. I can imagine small teams huddled over a table frantically running through how they can make their apps more fun, more useful, more real. Here is an army of smart and well-financed people who are trying to add a great product onto an existing viral loop. I don’t think many of them are having a lot of success.
Virality Isn’t New
It’s important to note that virality isn’t new, especially if you argue that word-of-mouth is the same thing. For the purposes of this post, I’m talking about the type of virality that Andrew Chen (who is one of my absolute favorite bloggers) defines as:
“I tend to think of Viral Marketing that include both systematic and unsystematic ways that your current customers acquire new customers… In some of these cases, the virality has been “built-in” to the system – for example, but chain letters explicitly promise you something in return for sending on a letter, as do Multi-Level Marketing systems like Tupperware. These incentives and systematic design are originated with the intent to propagate a viral process.”
In the standard word-of-mouth model, you have:
1. User tries product.
2. User loves product.
3. User evangelizes product to everyone they know.
4. Some subset of those preached to (greater than 1) tries the product.
5. Rinse, repeat.
Think Google, Apple, Microsoft (in the early days), etc.
In the viral-focused model you have:
1. User tries the product.
2. As part of trying the product, they (sometimes unwittingly) tell everyone they know about the product.
3. Some subset of those victims tries the product.
4. Rinse, repeat.
Think Facebook Apps, chain letters, tupperware parties, Geocities, and Hotmail. Or, let’s roll back to another web investment mini-craze– the SEO/Vertical Search business. Any SEO/user-generated content business is inherently viral. User creates account. Some subset of new users create a page of content. Content gets indexed by search engines. The new page brings in some traffic. Eventually, that user-created page converts a visitors to a content creator. Rinse, repeat.
Paul Graham (“ah, yes– the obligatory PG quote”) talks about the concept of getting upwind of revenue:
“In Patrick O’Brian’s novels, his captains always try to get upwind of their opponents. If you’re upwind, you decide when and if to engage the other ship. Craigslist is effectively upwind of enormous revenues. They’d face some challenges if they wanted to make more, but not the sort you face when you’re tacking upwind, trying to force a crappy product on ambivalent users by spending ten times as much on sales as on development.”
What I THINK he’s also advocating for is the concept of getting “upwind of distribution”.
It seems to me that when you remove the “user loves the product” step, you’re failing to solve the CORE problem that needs to be solved to build a great company. If you can’t create and maintain unique value with your widget or Facebook app, you’re doomed to experience the same fate as chain letters, mood rings, and GeoCities. You might well be able to get in and get out (with millions of dollars in your pocket) before you “jump the shark“. If your startup has a user-generated-content component, you might be able to amass enough SEO-fodder to make a healthy living on advertising, but that has its own challenges.
Hopefully you’ve got some grand capital-efficient plans to get it in front of your target market (WE do– we haven’t even gotten started at this front). But if your wondering why users aren’t coming to your web site, chances are you have a product problem– not a marketing problem.
Don Norman recently wrote a fine piece entitled “Why is 37Signals So Arrogant?“. As a student of link/click bait, I have to applaud him. Bravo! It’s right up there with Jason Calacanis’ post about firing anyone who isn’t a workaholic (his followup is a bit more measured).
So I’m going to do one better than Don Norman, and tell you exactly why 37Signals is so arrogant.
But, first I’m going to tell you that they’re not. At least not in the way that Norman is saying. 37Signals listens VERY HARD to their users. It’s amazing to note that up until recently (correct me if I’m wrong) Jason Fried read (and sometimes responded to) every single support email. In light of this, to say that 37Signals doesn’t listen to their users is absurd.
Norman and Nielsen have always argued that the best way to understand users is to watch them use your product. I tend to agree- but dealing with support yourself as a product developer is a close second– it’s an amazing way to feel the pain and confusion of your users. Most product developers hire a cheap support staff as soon as they can manage– to get themselves out of the muck. These guys didn’t.
But, come on. Read their blog. Take a look at DHH’s (in)famous “Fuck You” Slide. These guys are clearly arrogant.
Here’s why.
Take a look at the people that most people envy. Hell, start in high school and work your way up. How many times have you said, “why is that girl dating that absolute JERK?” Look at all of the people who are successful in this world and you’ll find a fairly common theme. There is a decided absence of humble and self-deprecating people. There aren’t a lot of people on top who are frequently saying, “I am wrong and you are right”.
So it’s easy to say that as software geeks we are above that. We grew up on the wrong end of “nice guys finish last” and we’re going to be bigger than that. But look at the giants of our world. Steve Jobs. Linus Torvalds. Paul Graham. Joel Spolsky. Bill Gates. Jakob Neilsen. There are certainly degrees of it in this collection of stars, but every single one of them speaks and acts with near-absolute assurance and authority. They embrace controversy and sometimes provoke it. Every single one of ‘em has been called arrogant.
As masters of marketing, the fellas at 37Signals are (either consciously or unconsciously) lumping themselves in with the guys at the top of the food chain. They are the high school equivalent of the insensitive guy in the letterman’s jacket who always gets the girl. They are talking the talk, stirring the pot, saying surprising things, pissing people off, and daring the world to prove them wrong.
You might not like them, but you’re looking at them and listening to them– which is more than you can say for the thousands of other 10-person profitable software companies out there.
I would like to finish by saying that I’m better than you. I’m right. You’re wrong. My [insert language/platform/dev tool] is better than your [insert language/platform/dev tool].
Thanks for listening.
RescueTime will never be a purveyor of widgets (as a primary business), but there’s no denying that widgets are a damn good way to spread the word about your product, assuming that anyone actually wants to install them.
A widget that displays exactly how you spend your computer time may be creepy to some. As an old skool fella who is a bit more privacy-focused, I never really thought that a widget belonged anywhere on our near-term product roadmap. However, when we did our “What features do you want?” survey, thousands of people filled it out… 26% of ‘em expressed interest in a widget.
Sooooo, we built widgets. You can see mine to the right hand side of this blog– it’s a real time report of exactly what categories of my computer time I’m spending the most time on.
As we started thinking about it, RescueTime widgets could be used for all sorts of fun stuff:
Widgets are officially a beta product– we’ve got a few kinks to work out. For example, in Firefox there is a Flash bug that results in the status bar continuing to report “transferring data from RescueTime.com…” even though it’s not (you can switch to a different tab and back to make the message go away). Anyone know how to fix this?
I have a hard time getting high-and-mighty about the paparazzi crap that I see in grocery store lines, given that I can’t seem to tear my eyes away from the train-wreck controversies of online celebrities. I just…. can’t…. look…. away!
Over the past two weeks, one of the big memes in the echo chamber is related to stealing photos… It seems a small a capella band created a fun/goofy song about the Web 2.0 Bubble, set to the tune of Billy Joel’s “We Didn’t Start the Fire”. The video is a montage of photos of assorted Web 2.0 personalities, logos, etc. It’s cute. I’ll embed it below (note: this is the first time I’ve EVER embedded a YouTube video!).
IANAL, so I can’t really speak to whether this use falls under “fair use” and parody laws. I think the band in question truly believed that it does and did their best to make it right once they realized that they might be in a bit of a “gray area” (read their blog post here).
Regardless, what struck me was the strident and downright venomous response from some photographers and other “artists”. It sounds exactly like the venom spewed by real estate agents towards RedFin. It sounds a lot like some movie studios and musicians when they talk about what’s happening in their industry. These people aren’t angry at just this little a capella band. They are angry at the entire world for evolving past their business model. They’re angry about becoming obsolete. How obsolete they become depends on how well they adapt to the world– not how loudly they demand that the world adapt to THEM. Off the top of my head, here are a few things that are changing the business of professional photography:
Is the photography/stock photo business dead? Not by a long shot, and not for a long time… But clearly there’s a shakeup in the works.
Here’s that embedded video. If you haven’t already seen it, enjoy:
Tony Wright is a founder and front-end generalist at a venture-backed startup in Seattle. He blogs about conversion-centric design, SEO, PR, fundraising, viral marketing, and occasional other geeky topics.