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The Awesome Truth About Pivots

The Awesome Truth About Pivots

Startups who pivot often get hated on, misunderstood, and bashed by the press. Learn why our company, 140 Proof, pivoted multiple times, and why it was awesome.

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jm3 (John Manoogian III)

October 05, 2012
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Transcript

  1. JM3 THE AWESOME TRUTH ABOUT PIVOTS

  2. JM3 john manoogian III @jm3 JM3.NET

  3. JM3 FOUNDER: SOCIAL TECH COMPANY

  4. JM3 WE HELP APP DEVELOPERS MAKE $

  5. JM3 (the signal we leave as we move through the

    public internet)
  6. JM3 SOCIAL TECHNOLOGY COMPANY

  7. JM3 WORKING + LEARNING CRAFT

  8. GENERAL ASSEMBLY JM3 TEACHING

  9. JM3 NIGHT JOB @ GA

  10. JM3 1 TERMINOLOGY * DISCLAIMER

  11. JM3 Entrepreneur Founder 2

  12. JM3 Small Businesses Startups 3

  13. JM3 “Valley-style” startups 4

  14. JM3 2010

  15. JM3 South Park in San Francisco

  16. JM3

  17. JM3

  18. JM3 CTR Click-through Rates THE DEBATE:

  19. JM3 plus 1: social analytics app

  20. JM3 YOU PLUS 1

  21. JM3 OPEN, UBIQUITOUS, WILD WEST MESSAGING For public social data,

    we used Twitter.
  22. JM3 plus 1 found you and sent you a link

    you clicked or you didn’t
  23. JM3 CTR 17%

  24. JM3 Normal: 0.1% – 0.01% A 17% CTR is unprecedented

  25. JM3 opportunity to pivot

  26. DECISION TIME FOR PLUS 1 JM3

  27. JM3 customer discovery system to promote our one product: our

    app, +1. 4 we had created a
  28. JM3 THE 10% CTR PIVOT (part 1: the “zoom out”

    business model pivot)
  29. JM3 ruby, rails, ec2 everyone / long-tail social analytics ruby,

    rails, ec2 everyone / long-tail relevant ads… pivot!
  30. JM3

  31. JM3 Ads are problematic in the echo chamber mono-culture of

    the computing industry, #tasteless
  32. JM3 Facebook: 84% REVENUE FROM ADS

  33. JM3 Google: 97% REVENUE FROM ADS

  34. JM3 Twitter: WHO KNOWS?!? (private co; guess 90%) REVENUE FROM

    ADS
  35. JM3 All in denial! Ad Shame …

  36. JM3 Debunking Pivots

  37. JM3 widely misunderstood What it’s not: running out of money,

    then changing your business
  38. JM3 The Big “Secret”: Successful Startups Pivot

  39. JM3 Flickr from MMORPG to photo-sharing site 1

  40. JM3 Heroku from in-browser code editing platform to “PAAS” 2

  41. JM3 3 from location based checkin site to !ltered photos

    Instagram
  42. JM3 Paypal from emailed payments from beaming money to Palm

    Pilots 4
  43. JM3 PLUS 1 From

  44. JM3 PIVOT #1, FROM SOCIAL ANALYTICS TO:

  45. JM3 SOCIAL ADS FOR THE LONG-TAIL (WE THOUGHT…)

  46. JM3 *REAL; WE ATE THESE.

  47. 2000 CUSTOMERS JM3 (BUT THE ECONOMICS STANK)

  48. JM3 who buys social ads?

  49. JM3

  50. JM3 who buys any ads?

  51. JM3 you don’t buy social ads

  52. JM3 ad companies buy ads.

  53. JM3 WTF? Madison Avenue buys ads? But Madison Avenue MAKES

    ads. Right?!?!
  54. JM3 Long Tail Madison Avenue The confusing economics of ads:

    Media (Holding) Companies buy most media, much like Eskimos buying ice
  55. JM3 THE B2B PIVOT (from long-tail to media co’s on

    madison avenue)
  56. JM3 2 PIVOTS

  57. JM3 social analytics > ads

  58. JM3 long-tail > madison ave.

  59. JM3 4REALITY PIVOTS

  60. JM3 self-serve > full-serve +

  61. JM3 website > sales team +

  62. JM3 Are we still pivoting?

  63. JM3 2 PEOPLE

  64. JM3 5 CITIES

  65. JM3 2 $MILLION EXIT RATE

  66. JM3

  67. JM3 Know when to stop!

  68. JM3 WE STAYED GROUNDED IN WHAT WE LEARNED LEARNING =

    EASIER THAN PREDICTING THE FUTURE
  69. JM3 GOOD TEAMS SURVIVE STARTUPS

  70. JM3 The Michigan Ma!a

  71. JM3 Engineering + Design proud Michiganders 2

  72. JM3 BUILD A PLACE TO ENERGIZE YOUR BEST CONNECTIONS

  73. JM3 THANK U(P)!

  74. JM3 For more insanity follow @jm3 • email jm3@140proof.com All

    photos Creative Commons licensed
  75. JM3 THANK YOU

  76. JM3 FIN