How do you build a new product with constant customer feedback while simultaneously staying under the radar? - Eric Ries
If you are part of a startup, you have likely read Startup Lessons Learned by Eric Ries. The quote above is based on this post, and details his experience utilizing Google Adwords to attract initial users to IMVU. I wanted to slowly increase our user base at lloquy.com, allowing time to pivot implementation and limit mistakes to a wider audience. Therefore, his method to attract users really got me excited, and I wanted to write about my experiences utilizing this type of marketing.
My previous experience with Google Adwords was positive. Around 2003/2004, I used Google Adwords to gain users on a videogame-related blogging website I created. My daily budget was a mere $2/day, and the service consistently brought 30-40 users each day. That website wasn’t a business, though (merely something I did to learn new technology). I felt that if Eric Ries was having better success today, then this method could easily provide a high return on investment and warranted some of my attention.
Unfortunately, my experience in 2011 was less successful then Eric’s and my past experience in 2003 (by a wide margin). Google Adwords, like Google’s analytics’ service, has become extremely complicated and hard to use without a significant time commitment. For Adwords, I believe this is because common and popular keywords are being taken by companies with a much higher budget, leaving bootstrapping startups behind.
I tried many, many keywords, but at most times, my keywords ended up being in one of two categories. Either the keyword did not have enough data to adequately gauge the number of daily clicks (meaning a low percentage of users searched on it), or the keyword was really expensive (meaning my $5/day would result in 1-2 clicks only).
Since you only pay for clicks with Google Adwords, I decided that casting a wide net was still a good method, and utilizing a wide net of lesser-used keywords would still produce a sufficient number of clicks at a low cost. This hypothesis proved to be false. I did receive some visitors, but the majority of clicks were from Google’s Display Network, and not from the keywords I entered. With the majority of clicks coming from the Display Network, I was unable to figure out any information that could help me improve my campaign.
I’ll be the first to admit that if you’re willing to really study Adwords and put in the time commitment, then you may have better luck. For a startup, there are 1000x things to do at any point in time, and I reached my limit with what I felt I could accomplish with Google Adwords. I felt bummed that this technique wasn’t working for me and decided to ask Eric Ries whether he still believed in his blog post. His response is below.
Me: @ericries Do you still find your post on SEM… relevant? I had tremendous success years ago, but not so much in 2011.
Eric: @presstartgames yes very much so- but AdWords itself has gotten too expensive for most keywords. try reddit or stumbleupon
Great advice, and my test validated his response. Eric offered two alternatives, so I researched both and decided to try StumbleUpon next. StumbleUpon utilizes a system where you pay for users to “stumble” on your website. Users have the capability to “like” or “dislike” your website, and you can earn free stumbles if enough users like your page.
Unfortunately (again), StumbleUpon did not produce the results I was hoping to achieve. While I only put in a small amount of funds for this test, StumbleUpon did not provide one sign-up to lloquy.com.
The results so far? Two different services with two similar results. At this point, I concluded my issue had to be one of three things
- The services (Adwords and StumbleUpon) weren’t bringing the early-user I needed
- My launch page sucked
- My vision for the startup sucked and users didn’t want it
I decided to ask Hacker News users (through this post) on issues with my launch page, and while I received some excellent advice on how to improve the launch page, I also received the following advice.
Stumbleupon traffic doesn’t work well. People are simply browsing from one site to the next looking for articles or funny cats and your bounce rate using SU is probably 100%.
Google ads might work but you might be better off getting on http://betali.st and http://startupli.st to get those early adopters.
Another request for advice and another excellent response. BetaList and StartupList are both free websites that attract users looking for early access to websites. I thought this could be a good approach and decided to submit lloquy.com to BetaList. After my submission, a few weeks had passed with no news on if it would be featured. I’d given up on that avenue and concluded the website would not help. I thought I was back to the first step.
Then BAM! it gets featured. The result was a steady stream of new users signing up on the launch page. In total, BetaList resulted in approximately 100 new users, which is exactly the goal, since lloquy.com has still not “launched” (in a marketing sense).
To summarize, the message of Eric Ries initial post is still valuable (and true), but the technology is constantly changing. For startups looking for the initial set of early users, I highly recommend BetaList over more established methods like Adwords. I haven’t tried StartupList yet, but plan to in the future.
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