Speaker: Dave McClure, Angel Investor, 500 Hats

Dave McClure says ‘Its all about measuring , while keeping it simple’. Starting with a hearty ‘AARRR’, Dave, an angel investor and founder of 500 Hats, talked about his experience in consumer internet startups. According to Dave, although market for online e-commerce and marketing is getting tougher, the environment for entrepreneurs is still favorable, with low software and hardware costs and high bandwidth available to users.

measure, measure, measure

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The path to success in an online world is clear. It is very important for entrepreneurs to measure. But, what are these metrics, one may ask?. There are many however the ones that matter most are not those that involve page views or dollars-per-user, but the stuff that comes in between. Metrics are great, but passion matters and once you have a workable system, it will help you optimize and improve. AAARR is a crude device yet workable framework to guide entrepreneurs.

feedback,feedback,feedback
Dave cautions against over engineering with features, big bang launches, and dense business plans. He ‘EXPLODES’ if he sees a plan that doesn’t represent what user wants. It is indeed important to find out what your users think. Taking this feedback and complimenting it with your business idea, forms a solid starting point. Giving further advice to entrepreneur, Dave says ’speed of execution’ and ‘visual design’ are perhaps the key barriers to entry, not algorithms. He recommends a look at ‘Kissmetrics’ for product planning along with standard Google analytical tools. Giving the example of ‘Teachstreet’, which went from 2-3% adoption rate in Seattle to 12% in subsequent Portand launch, he illustrates the importance of incorporating feedback to drive users to your site.

Finally Dave cautions between choosing carefully between what face you want to show to your users: ‘Ass’ or ‘Face’. He advises ramping up users slowly, choosing fewer, but more relevant features and constantly iterating on the feedback.

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