If you want to get more paying users, you either need to a) Find new acquisition channels, or b) Be better at using existing channels. This post will help you with both a) and b). I've read last week's tech news and found 3 acquisition channel opportunities:
TikTok and Instagram may soon add affiliate programs, making it much more easier to work with influencers;
Shopify just gave you an overview of how they're acquiring merchants for their platforms. Find why this is important;
Going viral on Twitter may not be worth as much as you think in terms of ROI.
Let's dive in.
Shopify just published their Q4 financial results for 2020. If you look at page 8, however, you'll notice an interesting image:
These are the channels that Shopify uses to acquire merchants (starting from entrepreneurs to large enterprises).
Notice how the lower you go down the list, the more "sales" you see appearing as a channel? This is consistent with my Zero to Users analysis - the bigger the companies you target are, the more you switch from marketing to sales.
What this means for you: If you want to target both SMBs and large enterprises, and are not sure what would be a suitable channels for each, this is a useful picture to refer to (coming from a company that successfully onboarded millions of businesses).
This is the conclusion of an analysis made by Zulie Rane. She reached out to the authors of several viral tweets to determine if they recieved any sales/inquiries from that extra exposure. All of surveyed accounts had less than 500 followers.
The results: One user got +300 followers, another +500 and some recieved media interview requests. The third person was offered a $10 brand sponsorship deal and +1000 followers.
Is Twitter overrated? Two weeks ago, I wrote about a study that found that the average engagement rate on a Twitter post was 0.08%. The bigger question though is: Is there any financial ROI from being big on Twitter? I've tried searching Indie Hackers for answers, and only found this post on how Dawid got 17 project inquiries after a popular Twitter figure replied to his tweet.
What this means for you: I've seen instances of people using Twitter successfully , but not as a social network - but a search engine. For example, take Referral Rock ($70k/mo), and the way they got to their first 500 users:
I was also active on Twitter where I reached out to marketers or anyone that mentioned "referral programs." I would comment or favorite tweets from the Referral Rock Twitter account which listed a free referral program. Throughout the year-long beta I had over 500 individuals kicking the tires on the free referral program before I started charging.
What about using Twitter as a social network (more specifically, posting something, hoping it will reach people beyond your existing followers)? Unfortunately, I haven't seen many such examples where founders had consistent financial ROI results.
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One of the biggest issues when working with social media influencers has been payment. Should you pay influencers up-front, or should you do a rev-share? If you do a rev-share, how will you track the results? It seems both TikTok/Instagram are actively trying to solve this problem.
What this means for you: These 2 platforms have billions of users, and millions of creators, so you can imagine the potential size of their affiliate network. If this happens, ideally, you'd be able to pick a list of suitable influencers, propose to run a small experiment where they promote your product in short video, and continue the relationship if you start getting sales.