BC STARTUP
Saved by @ThomassRichards

Today's thread is on the affiliate business model. Many years ago, I used to be an affiliate marketer. If there is any way to get schooled in marketing, becoming an affiliate marketer is probably the best way.

What is affiliate marketing and why should you care?

Read on >>

 1) Affiliate marketing is selling products or generating leads on behalf of other companies and getting paid a commission for those products.
2) Some notable examples you've seen before:

NerdWallet - you read their articles on best credit cards. You click on a link to one of those cards. You fill out an application. They get paid for delivering that lead to the cc company.
3) In https://t.co/kSfWS69ybp - same thing. Any of their financial products -- you fill out an application, and https://t.co/mCrBT43mOj gets paid for that.

But the affiliate revenue model applies beyond financial services products.
4) Wirecutter -- you see a neat product they review or talk about. You click through and buy.

Wirecutter gets a cut of that transaction.
5) The affiliate business model shows up a lot. And there are a lot of marketers who make a living promoting 3rd party products by being really good are driving traffic to these types of offers.
6) Let's start by talking about the challenges of the model.

At a high level, driving traffic to product offers (of any kind) is REALLY HARD. Specifically, it's hard to keep your customer acquisition costs (CAC) low and make enough money off the commission.
7) In particular, a lot of high volume affiliate marketers like to use ad networks to do this. And at market efficiency, this is near impossible.

For example, if I want to promote Apple Macbooks, I only make a commission on a sale, so I can spend up to a certain limit in ads.
8) But Apple, on the other hand, is making a much higher margin off a Macbook sale, so they can afford to outbid me in ads and spend more per sale.
9) In addition, there are probably a TON of other affiliate marketers that I'm competing with to get the sale. It's a brutal game for common household products.
10) Moreover, you only get the commission if the co can link the sale to you. So you get a special prod link to make this work.

But what if the customer clicks your link to the prod & doesn't buy & later goes to that same product pg on a different computer & then buys?
11) You don't get the credit. You don't get paid. That's it. So you could be driving traffic that you don't get paid on.

Historically, if you were also not the last "touch" w/ the customer, you would also not get paid even if the co could see that you had an initial touchpt.
12) One last issue is that typically customers forget the site who referred them to the end product so it's hard to "own" and retain your audience to increase their LTV over time.
13) For all of these reasons, I generally think the affiliate business model is RIDICULOUSLY HARD.

And anyone considering using it for a startup should probably start by being an affiliate marketer for 2 weeks just to learn.
14) That being said there are a few ways I've seen this work really well.

A) You negotiate and have access to unique products. This mitigates competition in customer acquisition channels. You can also discuss higher commission rates.
15) B) You build an audience around something else. And don't really worry about the monetization optimization at first.

NerdWallet -- community for the most honest reviews
https://t.co/mCrBT43mOj -- keeps all your finances together
16) For both of those sites, monetization isn't in your face, and they focus on retaining the user in the community -- keep you coming back to their site so that over time you will buy lots of products.

You have to be really patient.
17) C) Don't use paid customer acquisition channels because you can't afford high CAC. So you need some level of virality or strong patience via SEO as a channel.

VCs btw don't have patience so likely not VC backable at the earliest stages (which is fine but just know that)
18) D) For affiliate marketers -- offer discounts and coupons to be "last touch" on a sale and have high ad budgets to play with to generate a handful of successful campaigns that convert on offers right away.

(This likely doesn't apply to anyone starting a startup)
19) E) Run the affiliate business model in less crowded geographic markets and/or languages.

One of my acquaintances is a successful affiliate marketer & runs ads for offers in Spanish & the competition for Spanish ads a few yrs ago was basically zero. So her CAC was cheap.
20) F) Negotiate with newer products/companies so that you can make the sale on your site to control the whole sales experience + higher commission.
21) This feels like a niche business model, but it actually shows up all the time where you may not have noticed it.

Even Uber or other cos that have referral codes have marketers racking up free rides / credits -- that's affiliate marketing.
22) Lastly - so if you are using the affiliate model as your startup's business model, think about how you can avoid some of the challenges mentioned above to improve your commissions, reduce CAC / avoid competition, and ultimately "own" the end user to increase LTV over time.
If ppl are wondering how can I sign up for an affiliate mktg prog to see how this works? There are lots incl Google Affiliates, Commission Junction, Amazon Affiliates.

I.e. if you sign up & promote Amazon's products, you will earn a commission of sales:
https://t.co/kDf9PAhhxT

More from Elizabeth Yin

Elizabeth Yin
Elizabeth Yin
@dunkhippo33
Saturday thoughts on funding: Where it helps. Where it doesn't. And how it affects team, success, and PM fit.

This is just my $0.02 after looking reviewing 30k+ early stage startups personally and having led 350+ investments across 2 VC firms & as an angel.

Let's begin! >>

1) Money is great to have in building a startup (for the least dilution and pain possible) That's true and always will be true. 😆

But just like how money can't buy you happiness, it also can't buy you PM fit.

2) PM fit is the holy grail for software startups. (we're not talking biotech - if you have a cure to cancer, I guarantee you everyone wants it).

But for software startups, it's unclear if ppl want your product at your price pt.

3) If you don't find PM fit, in this day and age, you will be able to get some sales. Maybe even say $1m in sales (or more!) per year, and you can still make a living.

But having sales does not mean that you have a repeatable customer acquisition process that can be sustainable

4) As an aside, that is why we invest at pre-seed & don't care about startup traction, because I don't believe traction at the earliest stages suggest PM fit. Traction only shows that a founder can execute (& that's impt too) but there are other ways to assess execution earlier.
STARTUPS
Elizabeth Yin
Elizabeth Yin
@dunkhippo33
Some gems from @MacConwell of @RarebreedVC in Clubhouse right now:

1) VCs are looking for startups that can get to $100m / yr in rev by yr 7-10.

VCs need this kind of return in order to produce great funds.

2) And so many companies won't get to this level - and that's not a bad thing - but then it means you should be thinking about trying to get going w company revenue since you can't count on VC backing.

3) someone asked about age and fundraising & do accelerators help?

Age doesn't matter. But just make sure no one is taking advantage of you. And as such, accelerators can help sometimes w that guidance.

4) Someone got a rejection because he had a teddy bear in his room (side note: what investor says that?!?)

Mac says he's been there and has heard that saltiness. But you're going to get a lot of nos. And you gain more leverage w more progress and traction. So just keeping going.
INTERNET
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Elizabeth Yin
Elizabeth Yin
@dunkhippo33
Some wed night thoughts on investor “value add”:

1) At the end of the day, money is a commodity. That mere fact should make every vc shudder.

It is amazing how many ppl (incl myself) clamor to get into a commodity business!

2) As such, to differentiate, different investors provide other things beyond money. Sometimes it’s community. Sometimes hiring help. Sometimes expertise or sector-focused networks. Etc

3) And some VCs are truly value add! For example, if I had an edtech co, I would hands down raise from @jwdanner - he has been there as an entrepreneur, built schools, and invested in so many hit edtech companies.

4) But at the end of the day, regardless of who invested in you, it’s the founders + team who are doing all the work.

5) when I think about what I’ve done for my own founders, it’s ranged from doing intros (mostly to other investors) to cust acq advice to feedback etc

But the reality is - all of my founders would’ve figured out how to get that intro or that piece of advice w out me
STARTUPS , INVESTORS
Elizabeth Yin
Elizabeth Yin
@dunkhippo33
Today's thread is a continuation on *how* you generate momentum in fundraising.

Here's a rough conversation I had with a founder (called 'C') over the course of days a few months back.

Read on >>

1) C: I'm having trouble raising. VC A and VC B are taking so long to get back to me.

Me: Oh, when did you meet w/ them?

C: 3 weeks ago.

2) Me: Oh, are you mtg w/ anyone else?

C: No, I got busy working. I had all these sales calls to make.

Me: That's the problem - there isn't a reason for them to move quickly. There's no investor at the table.

3) C: But I have all these sales calls to make!

Me: I really don't have a great answer for you here. This is probably the hardest part about fundraising - juggling your actual job w/ your fundraising job, which is full-time too.

4) Me: You need to hand off your sales calls to your co-founder. And then you can do mtgs back to back.

C: Ok...

[some time passes]

C: Ok - I'm ready.

Me: How much do you want to raise and what are you using the money for?
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Elizabeth Yin
Elizabeth Yin
@dunkhippo33
Last week, I wrote a thread about generating momentum for startups.

Today's thread is on how emerging fund managers can generate momentum for their fund.

Whatever you do, momentum is so impt to get ppl onboard -- for hiring, for sales, for fundraising.

Read on >>

1) First, why does momentum matter?

Think about it from the "buyer's perspective" -- it is almost ALWAYS better to wait and get more information if you can get the same deal. Right?

More info on a potential investment. More info on a new product. Etc.

2) There are few situations where it's impt to be a first mover.

If you're a product buyer, it could be you have a dire situation at your company that alternatives can't handle.

But if you have a decent alternative (alternative product or alt investment), it's better to wait.

3) That means it's YOUR JOB to create momentum. Whether for fundraising, sales, or hiring.

So with that in mind, how do you generate momentum for fund fundraising?

4) In a prior tweet about generating momentum for startup fundraising, essentially I said to limit your supply (the amnt you are raising) in tranches AND to increase demand by packing in mtgs.

Unfort this doesn't quite work well for funds.
STARTUP , FUNDRAISING

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GREG ISENBERG
GREG ISENBERG
@gregisenberg
THREAD: Most advice is garbage

Here's some advice you shouldn’t listen to on startups, careers and life:

“90% of startups fail”

If you’re building a startup for the money, please quit

You’re probably better off working for FB or AMZN and rising the ranks

A successful startup isn't just about the valuation. It's about impact on your team, the world and yourself

The journey is 🔥

“You'll sleep when you’re dead”

If you don't sleep, you'll BE dead

Sleep is crucial to a happy mind and body

Without sleep, you become "foggy drunk", unable to take control of your life, startup or career

Beware of hustle culture and sleepless nights

“Become a doctor, lawyer etc”

This is probably some of the most undercover toxic advice parents can give to their children

The internet has opened the doors for anyone to become anything

Discover WHO you want to become before you decide on WHAT you want to become

“Don’t talk to strangers”

- You can't make lifelong friends if you don't talk to strangers
- You can't really discover who you are if you don't talk to strangers
- You can't get the benefits of the internet without talking to strangers

BE CAREFUL, but please talk to strangers
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Paras Chopra
Paras Chopra
@paraschopra
Only two types of startups exist: technology-led and culture-led

(a short thread on this mental model)

🔥 It's also the 7th chapter of my book https://t.co/iLfMb0xhnD


1/ There are two ways an entrepreneur can fail:

a) launch a product that nobody desires;

b) launch a product that people desire but with no significant advantage over established competitors (hence give no strong reason for a customer to switch away).

2/ These two failure modes have their analogous success modes:

a) culture-led startup success where a new desire is discovered and fulfilled;

b) technology-led startup success where new technology is used to fulfill an existing desire.

3/ Let’s explore culture-led startups first.

They are the ones in which the entrepreneur is able to observe a pattern of new derivative desires that didn’t exist before.

Such trends are very hard to spot because initially they can be mistaken either as fads or insignificant.

4/ However, an entrepreneur who has good observation skills is able to connect the dots from diverse sources to grow his conviction about a cultural shift just when the market is
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Alex Brogan
@_alexbrogan
Most people have only just seen the opening scene of the internet.

But behind the curtains there’s pure gold.

Here are 10 of the most useful websites in existence:

https://t.co/YShvPsYfKT

See all of your newsletters in one place and unsubscribe from them with a single click.


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Share files privately & secure, without a size limit or storing anything online.


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You can build, plan, and visualise your website structure and create content in real-time.


https://t.co/rsJN67IqTI

Examine lets you cut through the noise on Nutrition and supplement information.

It’s got zero conflicts of interest: No ads, No industry ties.
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Julian Shapiro
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@Julian
My day job is growing startups.

I've worked with a few hundred by now.

Here's how to grow your podcast, newsletter, blog, YouTube, and Twitter.

Hope this helps! A thread:

Growth marketing, a timeline:

2015: "We need to go viral."

2017: "Well, we raised $25m of VC. Let's dump it on Facebook ads."

2021: "Wow. We should have been focusing on content and building a great product."

How to grow a podcast:

• Be YouTube-first; do video
• Split eps into 8min YouTube clips with SEO’d titles
• Get guests that are searched for on YouTube
• Consider not publishing bad eps
• Exchange eps with other shows
• Niche is fine, but be widely accessible

How to grow a YouTube channel:

• Describe the video's value in the first five seconds
• Ask a question you don't resolve until the last five seconds
• With YT algo, 1 amazing video > 10 good videos
• Quick cuts don't give people time to ask if they're bored

—Mr. Beast

Some tips for growing newsletters:

• Plug it at the end of a tweet thread.
• Swap plugs with other newsletters.
• Send a sample issue upon signup to excite people for future issues.
• Consider twice-monthly over weekly. My poll revealed people are fatigued with newsletters.
STARTUP , GROWTH
Alex Good
Alex Good
@goodalexander
I really like @sweatystartup’s tone - and I think it applies to trading

Most fintwits try to sound smart and do complex formulas to convince you you’re too dumb to manage your own $. It’s marketing

For traders focused on cash flow:
A thread on what I call “the pnl grind”.

1/ the grind is a grind because it’s work ethic. 12 hours a day, min. And weekends.

The grind is a grind because it’s hitting singles. 5-10 trade concepts a day. Hypothesize. Swing. Measure. Repeat.

The grind is a term that comes from gangster rap. And it’s focused on 💵

2/ what does a “grind trade” look like? Signal hit the top of the App Store. What’s a basket of trades that will work in a privacy focused world?

Long Eqix short Twtr - private cloud vs regulation
Long Z cash short bitcoin - private crypto vs censored crypto

Just examples

3/ grind trading is all about 1 off events that diverge from history. Quant traders don’t model them well bc lack of history. Fancy long / short guys are slow moving their books. Day traders aren’t focused on fundamentals.

And let’s be honest - grinding works bc it’s brutal

4/ when Biden said he was going all in on cyber security, due to Russian hacking - it meant Russia was the new media scapegoat, so Blinken could deal w 🇨🇳. Blinken is a communist boot licker. So what. Don’t get emotional. Monetize. You went long $Feye/ $JD. Got paid. Moved on.
STARTUP

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Speech Delay is most common in children nowadays

In ancient times, our grandparents used to follow typical natural way of caring the needs of a child. All they used were more of natural products than chemical based for the growth of child.


One of major step followed was to feed Gurbach Jadd/ Vasa Kommu/ Acorus Calamus for initiating good speech ability in a child. This stem was needed to babies on Tuesdays and Sundays in mother's milk.

Vasa is feed to baby after the 1st bath on 12th day in week. Weekly only thrice it is fed and named as :

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Mangalwar - Vaak Vasa
Ravi Vaar - Aayush Vasa

This stem is burnt and rubbed against the grinding stone in mother's milk or warm water to get a paste


The procedure to make it is in the link

https://t.co/uo4sGp7mUm

It should not be given daily to the child. Other main benefits are

1. It clears the phlegm in child's throat caused due to continuous milk intake. It clears the tracts and breathing is effortless.
2. Digestion

For children who haven't got their speech and is delayed than usual should feed this vasa on these days in week atleast for 6months. Don't get carried away with this dialogue
"Some gain speech little late"
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@calebporzio
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PAKISTAN-INDIA WATER ISSUES – HOW INDIA STOPPED WATER IN PAKISTAN's CANALS IN 1948

Thread

After partition in 1947, the water system was also bifurcated between Pakistan n India.

India cheated Pakistan when on April 1, 1948, India suddenly n without warning stopped...
1/n


...the supply of waters flowing into Pakistan's Central Bari Doab and Dipalpur Canals.

The boundary award on the partition of the sub-continent had left the headworks of these canals in Indian territory, and in accepting it India had implied her willingness to leave...

2/n


...the historic distribution of common waters undisturbed.

India's action was therefore in flagrant disregard not only of international law n morality, but of her solemn commitments with Pakistan and a gross violation of this country's historical rights over common waters.

3/n

Faced with a threat of utter desolation of millions of acres of fertile land, Pakistan had perforce to sign a document with India in which she agreed to "India's progressively diminishing water supplies to these canals and to the West Punjab government's tapping...

4/n

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5/n
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