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John Gannon

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Top Stories by John Gannon

John Gannon: The ‘other’ 1% Originally posted on A Founder's Notebook: From Things I’ve Learned About How to Build Good Product by Peter Nixey: 1. Golden rule of social: 90% of people consume, 10% of people curate, 1% of people create. 2. Rules of engagement: Registered users / installs — 30% will use it each month, 10% will use it each day, 1% will use it concurrently. 3. Fremium conversion: 1% of your signups will pay (normally 1-5%). 4.  Expensive is profitable: “50% of our revenue comes from only 11% of our customers” — Ryan Carson, founder Carsonified and Treehouse. 5. Cheap is expensive: Cheap accounts cost more in support (7x). 6. Advertising revenue: Social network CPM ~$1, Times Newspaper ~$10; $1M / year in revenue = 1bn page views (good luck). 7. Email subscriptions: Open rates = 20-40%, click through rates = 1-5%; 1 sale per 3,000 emails. 8. Churn determines Sa... (more)

Joining a CFO’s team at a tech company: A path to a venture capital job or a road to nowhere?

A reader of my venture capital careers mailing list wrote to me with the question below. She’s an investment banker that’s thinking of going to work on a CFO’s team at a small tech company. Her goal? To eventually get a job in venture capital. Here’s what she said (slightly modified to protect the innocent): I wanted to get your opinion on a job I’m currently interviewing for. At some point I would like to get into VC but I realize with my current background that it may be more challenging. I am currently interviewing with XXXXXXXX in XXX. The role entails working with the CFO, as... (more)

Truth in entrepreneurship

I didn’t want to work. I didn’t want to get out of bed. I didn’t want to cold call people. But I did it anyways. via How I Started 3 Companies in 3 Months. Filed under: Uncategorized ... (more)

The rise of the SMB SaaS solution

Now the math gets interesting: To build a $100m business on a $5 a month freemium tool, you need 2,000,000 paying customers.  Congrats to DropBox and SurveyMonkey.  But who else is pulling this off?  Not too many. To build a $100m business selling to SMBs at $300 a month, you need ~25,000 paying SMB customers.  A lot.  But achievable.  If you dominate a large vertical, especially. In fact, it’s easy to see, 5-7 years down the road — 15-20 $100m+ ARR winners here.  All selling verticalized solutions to SMBs.  It’s, finally, time. The Rise of the SMB SaaS Solution. via The Next ... (more)

The only monthly goals that matter for pre-product B2B startups

Before your B2B startup has a product available you’ll want a few – but not too many – metrics to help you steer the ship in the right direction. Based on my experience at a couple of startups that I joined pre-product or founded here are the handful of metrics that I suggest you measure/goal. Customer Development conversations It doesn’t matter what your startup is building if customers don’t want it.  Get out of the building and make sure you are talking to potential customers often. This is the only way you’ll get a deep understanding of your potential customers’ needs. When... (more)