Time collapsingmegaconference 9successaccelerationstrategies10-12-16

#tca2016 @RolandFrasier
Native Commerce & Digital Marketer
7 Strategies To Rapidly
Accelerate Success

This is a sample of bold
text on a full color slide.
This is good for quotes,stats,
dividers,etc.
#1 Ladder Hop

People Think In Ordered Lists
• On A Scale Of 1 To 10… The Top 3…
• You currently occupy a rung on some ladder
• To move up, you really have only 3 strategies
– Move up the ladder by “paying your dues”
– Hop to a different ladder
– Create a new ladder where you are #1

Beer
Imported Beer
Mexican Beer German Beer Japanese Beer
Domestic Beer
#1 In USA #1 In Germany
Lite Beer Craft Beer Beer With An Orange

Brands
Find New
Categories

There’s
Always A
New
Category
There Are Over 2,800 Categories + Sub-Categories For Kindle Books

Ladder Hop By
Differentiating
Your Value Curve

DifferentiateYour Value Curve

Ladder Hopping To $3.3 Billion
Amazon
• Fixed Price
• FBA
• SEM: $1.35B Spend
• No Acquisition
Jet ($1B Run Rate $50 CPA)
• Variable Price: Smart cart lets users pay less
(bundle, no returns,no credit card = pay less)
• No FBA: Bundling,Geo Aware, Provide
Customer information = > Retailer Profits
• No SEM: $20M/Month Mass Marketing
• Acquisition: Retailers can get customer info

Ladder Hopping To $2.8 Billion
Amazon
• Warehousing +
Marketplace
• Ads: 3% of Revenue
• Not IndustrySpecific
• 33% Of Online Sales
Wayfair ($62 CPA $76 ICV)
• Storm OMS: Minimizes warehousing,
integrates with 7k suppliers/7M SKUs
• Advertising: 12% of Revenue
• Industry Specific: Carries products Amazon
does not, Investing in AR via WayfairView
• 33% Of Online Home Furnishing Sales

Can You Ladder Hop To A Higher Valuation?
Industry
Edu. Services
Publishing
Bus. Services
RE Services
Multiple
8.5
10.18
12.52
16.13
Industry
Entertainment
Diversified
Finance Serv.
Retail Internet
Multiple
12.61
19.82
35.29
42.14
Market Average = 11.45
Source: valuationacademy.com/industry-specific-multiples#tca2016 @RolandFrasier

Repositioning =
$33.64 Million
Higher Valuation
Industry Multiple EBITDA Valuation
Education 8.5 $1 Million $8.5MM
Publishing 10.18 $1 Million $10.18MM
Business
Services
12.52 $1 Million $12.52MM
Real Estate
Services
16.13 $1 Million $16.13MM
Diversified 19.82 $1 Million $19.82MM
Financial
Services
35.29 $1 Million $35.29MM
Retail Internet 42.14 $1 Million $42.14MM

Industry Multiple Company EV Per $100k
Publishing 10.18 $1,018,000
Bus. Services 12.52 $1,252,000
Weighted
Average Multiple
10.5
2012 Weighted Average Multiple Was About 10.5x

Industry Multiple Company EV Per $100k
RE Services 16.13 $1,613,000
Diversified 19.82 $1,982,000
Finance Serv. 35.29 $3,529,000
Retail Internet 42.14 $4,214,000
Weighted Average
Multiple
28.6
2016 Weighted average multiple is about 28.6x
=272% valuation increase from changing the model

1. YOY Growth % TL/BL
2. Emp. Depth + Tenure
3. Audited Financials
4. Legal / HR / SOPs
5. EBITDA > $10MM
6. Proven Team
7. Lots of Blue Sky Left
8. Defensible IP
9. Prod/Cust Diversity
10.Risk Profile
Source: DenaryCapital
Ladder Hopping From“Average”CompanyTo
Top Quartile Gets A 3x-6x Bump

Ladder Hopping Questions…
• What ladders and what rung are you on now?
• Can you hop to another ladder to move up faster?
• Are you currently in the right value curve? Category? Industry?
• Could you reposition your model to bump valuation?
• Are you maximizing the 10 valuation hacking factors?

dividers,etc.
#2 Think Different

How Fast Can You
Complete The
Maze?
Start
Finish

Lateral Thinking:
Move outside the
implied rules of
the system
Start
Finish
What assumptions
are impeding your
speed right now?

Think Laterally
• Ask how can I grow 10x… 100x?
• Most people and business focus on
Optimization which yields Linear Growth
• We also want to focus on Innovation
which yields Exponential Growth

The police receive an anonymous tip and
raid a house to arrest a suspected murderer.
They don’t know what he looks like but
they know his name is John and that he is
inside the house.
The police bust in on a carpenter, a taxi driver, a mechanic and a
fireman all playing poker. Without hesitation or communication of
any kind, they immediately arrest the fireman. How do they know
they've got their man?

A baby falls out of the window of a 20
story building onto the ground and
lives. How is this possible?

A police officer saw a truck driver
clearly going the wrong way down a
one-way street, but did nothing to
stop him, why not?

Apply Lateral Thinking
• What pre-conceptions about your life or
business are currently holding you back?
• What factual assumptions are you making
that may not be actual facts?
• What language patterns are you using as
you frame possible solutions that may lead
you to make incorrect assumptions?
• Frame growth questions in terms of ideal
desire + constraint...

Build A $50k/Month Content Team
GeneratingOrganicTraffic
HowCan We Get $18M/Month Of
Traffic For Only $50k/Month?

How Can We Get $1+ Fan Page Likes For 5-7Cents?
Step 1: Topic Feeder Pages > 5-7 Cent Likes
Step 2: Interest Pages > 10-15 Cent Likes
Step 3: Primary Page> 30+ Cent Likes
Use topic pages to send traffic to Interest pages and multiple
interest pages to prop up primary FB page.
Testing now: 70k+ likes in 30 days on $5k ad spend.

dividers,etc.
#3 Model Success

Model The Success Of Others
• Clone existing successful businesses +
their business models
• Use competitive intelligence to find out
what’s working best for them right now
• Gather ideas for tests, test and optimize
• Experiment with different variations of
business models to find the best path

Deep Dive Your Competition’s
Business Models
• Use the Lean Canvas or Business Model
Canvas to clone their business model
• Review these models and design your own
based on the best parts of theirs
• Optimization without a business model is
flying blind without a destination
• Know the answers to key questions like…

Disruption = Applying Different Business Models To Your Industry
• Landlord (Physical/IP)
• Affiliate
• Pay As You Go
• Publisher
• Franchise
• Manufacturer/Sales Rep
• Wholesaler
• Broker
• Reseller/VAR
• Retailer
• Network Marketing
• All you can eat
• Direct Seller
• Subscription

Experiment With Different Pricing Models
• Free (Ad Supported)
• Freemium
• Value Based
• Tiered/Volume
• Feature + Add-Ons
• Low Price
• MSRP/MAP
• Free + Paid Support
• “Cost +” or “x Cost”
• Portfolio/Suite
• Commodity
• Razor + Blade
• Premium/Luxury
• Discount

HowCan We Quickly Expose New
Sites To Existing Traffic?

Model People.com

AffinityTraffic: SimilarWeb.com

Modeling Questions…
• What business models are your competitors using now?
• How would you change your existing business model knowing what
you know about your competitors?
• Can you apply different business or pricing models to your industry to
disrupt it?
• What’s working for other people in and outside your industry that you
can adopt to improve your business?

dividers,etc.
#4 Fast Feedback

Build > Measure > Learn
• Shorten the BML loop with Fast Feedback
• Build MVP First OR Start With Your Existing
Product/Service, then Test it.
• Measure Results
• Learn What To Test Next From Data Analysis
• Create Product Iteration that better solves
the customer’s problem. Verify leaps of faith,
value hypothesis + growth hypothesis

PMF + PFM
• Product Market Fit Never Stops
• People + Fun + Money
• “ABI”ALWAYS Be Iterating
• If you don’t someone else will be…
– It’s why AirBnB isn’t Hilton or Marriott
– It’s why Newspapers didn’t start Craigslist
– It’s why Blockbuster never saw Netflix
coming

Accelerate Feedback With…
• Mentors: Virtual (Videos, Books, Etc.) + Live
(Unpaid Deep Relationships)
• Masterminds: Paid formal + Unpaid informal
• Strategic Partners: From your network,
mentors and masterminds
• Fans: Your early adopters and best
customers are okay with flawed MVPs.
Genchi Genbutsu + Sakichi Toyoda’s 5 Whys

Business Model Pivots…
• Zoom-In
• Zoom-Out
• Technology
• Platform
• Channel
• Business Architecture
• Customer Segment
• Customer Need
• Growth Engine
• Value Capture

Feedback Questions…
• Do you currently have a BML Loop to continually improve PMF
• Are you working with people you like, have fun and make $ with?
• What can you do to accelerate feedback and iterate better + faster?
• What mentors and masterminds should be a part of your life?
• How can you best engage your biggest fans in the BML loop?

dividers,etc.
#5 Piggyback

Leverage“TIME COP DOC”
• Tech
• Inventory
• Money
• Employees
• Customers
• Ops
• Platforms
• Distribution
• Overstocks
• Content

Strategic Partner Or Platform Jacking: Whatever It Takes

HowCan You Create Branded Content Without AContent Team?

Reduce Inventory Costs
Tap Customer Base
Access Sales Rep Networks
Leverage Celebrity
Add Brand Affinity Credibility
HowCan You Use LeverageThrough Strategic PartnershipsTo…

Enhance Revenue + ValuationThrough Equity Deals (Newco With Ed)
Ozark Mountain Foods
Supplier Lockup +
InventoryPlay
Ventury Capital EBITDA Arbitrage Play
Positive You! Affinity Market Play
NewCo Physical Markets Play

dividers,etc.
#6 Catch Waves

Watch Trends > Catch Waves
• Learn to recognize patterns
and position yourself at the
right place at the right time.
• Trendwatching.com
• Learn to say“not now”
• Pay attention to waves like…

FormatWaves LikeTop Down,VerticalVideo

Negative Waves Like Ad Blocking

DemographicWaves Like Hispanic-Americans
• There are 55.4M Hispanic-
Americans in the US today (17%
of the US population)
• By 2060 there will be 128.8
million (31% of the US
population)
• Get familiar with “acculturation”
Source: PewHispanic.org

Trendwatching.com
is an excellent
source of info on
innovations and
trends across all
industries

AdaptTo Marketing Trends
• Audio Personal Assistants (Siri,
Alexa, Google Now, Cortana)
• Conversational Commerce (Chatbots)
• Messaging App API Integrations
• Unified Commerce
• Augmented + Virtual Reality

What IndustryWaves Can You Ride Now By Repositioning?
Biz Opp
Big Data Provider
Where is the growth opportunity in your market?
Are you even in the right market to maximize opportunities?

dividers,etc.
#7 Momentum

Newton’s Laws + Momentum
• Objects in motion tend to stay in
motion.
• Chunk for tiny wins
• Try to work with people + business
that already have momentum
• Your super power + others’super
powers means no still starts #tca2016 @RolandFrasier

What Is Your Growth Engine?
• How will your existing customers
help you to get more customers?
• Viral: Viral Coefficient > 1.0
• Stick: Acquisition > Churn.
• Paid: Marginal Revenue > CAC

Successful Momentum Plays…
• Dropbox, Uber, Harry’s, Groupon,
Blue Apron = Bribes
• One Plus, Naked Wines + Gmail =
Waiting List + Invites
• Etsy, Udemy, Tinder = Live Events
• Facebook, Lyft + Yelp = Geo Launch

HowWe Use Momentum To Build New Businesses

We Use Momentum To Allow For Multiple Exits
1 Exit
4 Exits
100+ Exits

150 Million DAUs
70% of Mashable’s Traffic
21% of BuzzFeed’s Traffic
HarnessThe Momentum Of
Emerging Platforms

Amplify Momentum
• Build potential energy + amplify
when you catch a wave
• Michelle Phan, Oreo with media
• Udemy, Tinder, Yelp with events
• Reddit, AirBnB, Naked Wines
with social proof

Amplified Momentum For38MViews +
331k Likes + 665k Shares: 30 Days

Video Launch Amplification Sequence
1. Amplification #1: Launch in 15 international countries first.
Spend $600 on 1st promo to foreign.
2. Amplification #2: Add US/Canada: Reduce foreign countries.
Spend another $600 in US/Canada.
3. Amplification #3: Add additional spend for to reach desired
number of views.

dividers,etc.
Bonus Strategy:
Super Connect

Super-Connect
• Leverage connections via hubs
with many spokes.
• Give value without expectation.
• Enter via known access points.
• Reach up and down the ladder.

dividers,etc.
Thank you!

Time collapsingmegaconference 9successaccelerationstrategies10-12-16

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Time collapsingmegaconference 9successaccelerationstrategies10-12-16