This reminds me of the book "Will It Fly?" His approach wasn't targeted to SV startups, but the concepts are similar.
https://www.amazon.com/Will-Fly-Business-Waste-Money-ebook/d...
How to Kill a Startup Idea with Google Keyword Planner and AdWords: A Case Study
61–70 of 193 posts
Re: How to Kill a Startup Idea with Google Keyword Planner and AdWords: A Case Study
#62Earlier quoted context omitted.
Ansel from PSL here. Absolutely. Because we're venture-backed and are spinning out venture-backed companies, we are limited to billion dollar ideas. It's not uncommon for us to kill great ideas that could "only" make tens of millions of dollars. We're hoping through blog posts like this and other means to be able to share more of them because we want those companies to exist, we're just not set up to create them!
feel free to start sharing those "small market" ideas haha
After they've been vetted of course ;)
Re: How to Kill a Startup Idea with Google Keyword Planner and AdWords: A Case Study
#63So these guys have to read up on some articles about multisided marketplaces which what they were testing. Starting a matching platform between consumers and teachers is not a feasible plan because this is a longer term relationship and a platform is easily cut out. A platform like uber works because nobody has a regular cab driver. Supply and demand matching is also terrible for dog walking platforms. Don't spend ti…
Not only that, I’m amazed that VCs call the awful ads they tested “marketing”. What they created is simple, uncompetitive, uncreative advertising, and that kind of thing doesn’t stand a chance in today’s world. Of course it performed terribly. Marketing today takes just as much creativity as the product you’re selling. Actually, I would argue it takes more in many cases. It’s like building a race car and putting low grade gas in the tank. Theres a surprising lack of business acumen here.
Re: How to Kill a Startup Idea with Google Keyword Planner and AdWords: A Case Study
#64So these guys have to read up on some articles about multisided marketplaces which what they were testing. Starting a matching platform between consumers and teachers is not a feasible plan because this is a longer term relationship and a platform is easily cut out. A platform like uber works because nobody has a regular cab driver. Supply and demand matching is also terrible for dog walking platforms. Don't spend ti…
Not only that, I’m amazed that VCs call the awful ads they tested “marketing”. What they created is simple, uncompetitive, uncreative advertising, and that kind of thing doesn’t stand a chance in today’s world. Of course it performed terribly. Marketing today takes just as much creativity as the product you’re selling. Actually, I would argue it takes more in many cases. It’s like building a race car and putting low…
That's why they accounted for much higher CTRs in the long run by optimizing the ads. Also, I'm no expert but I would imagine you shouldn't base your market research on getting lucky with a viral ad.
Re: How to Kill a Startup Idea with Google Keyword Planner and AdWords: A Case Study
#65I wouldn't use Keyword Planner for keyword research data. The keywords that appear there are only being actively bid on. So keywords that have more search volume and no ads won't be included.
This is a great point. Can you please confirm with a source (or other commenters confirm)? Thank you.
Re: How to Kill a Startup Idea with Google Keyword Planner and AdWords: A Case Study
#66So these guys have to read up on some articles about multisided marketplaces which what they were testing. Starting a matching platform between consumers and teachers is not a feasible plan because this is a longer term relationship and a platform is easily cut out. A platform like uber works because nobody has a regular cab driver. Supply and demand matching is also terrible for dog walking platforms. Don't spend ti…
Excellent point. This would have been reason enough to kill the idea irrespective of the CAC calculation. Speaking from extensive marketplace experience: A pattern of long term relationships will lead almost surely* to supply-side defection in your marketplace, which is when the supply leverages its relationship with the demand to set up a side deal that cuts out the platform. This can quickly take both supply-side a…
I wonder if it would help to rank a provider based on retention and CSAT and give more incoming leads to providers with more in-app retention?
Re: How to Kill a Startup Idea with Google Keyword Planner and AdWords: A Case Study
#67Earlier quoted context omitted.
Reading this article and seeing these replies, I feel like a communist who accidentally walked into a Davos hotel lobby during WEF. What about just making a website to connect learners and providers? This commission-taking, the Uber model, such effing rent-seeking. I mean I also don't work for free, but things like "Uber-for-dog-walkers, but we'll fine you much money if you arrange dog walks outside of our service. A…
> such effing rent-seeking That was also my take-away regarding this idea. 20% cut? For match-making on private music lessons? Fuck that. Our local music store charges less than that for renting an hour in a soundproof room! And the discoverability/match-making "platform" is a free bulletin board next to the restroom... Also love how that email described the radical act of checking the local music store's bulletin bo…
And the existing competitors are apparently charging a 40% cut!
Even more depressingly, good music teachers, once they get established, will typically have as many students as they want through word of mouth alone. So the teachers you'll find who are desperate for students and willing to give up a 20-40% cut are probably mediocre.
Re: How to Kill a Startup Idea with Google Keyword Planner and AdWords: A Case Study
#68Earlier quoted context omitted.
Excellent point. This would have been reason enough to kill the idea irrespective of the CAC calculation. Speaking from extensive marketplace experience: A pattern of long term relationships will lead almost surely* to supply-side defection in your marketplace, which is when the supply leverages its relationship with the demand to set up a side deal that cuts out the platform. This can quickly take both supply-side a…
How does supply side defection work for airbnb except in very edge cases, such as a long term rental. Even then it turns into something like apartments.com
Well it's pretty much driven by customers but same diff really. People who book a night or two then realize they want to extend and ask to pay cash, mostly.
Someone who's already stayed with you just texting the next time, etc.
It works since Airbnb is mostly there to hook you up and protect from crazy people's wanton destruction, so once you know you're dealing with safe people and you've gotten the review, eh.
Wouldn't really be worth the penny-pinching, except people tend to forget about the long-term booking discounts and actually end up paying more than they would've just using airbnb.
Re: How to Kill a Startup Idea with Google Keyword Planner and AdWords: A Case Study
#69This makes some strong assumptions about the validity of the google and Facebook data that underpins this theory. As the case for the prevalence of ad fraud and questionable practices by these platforms mounts, it’s hard to believe any data around CTR and purported conversion vs actual legit human traffic and cash in hand conversions.
Re: How to Kill a Startup Idea with Google Keyword Planner and AdWords: A Case Study
#70This model seems to ignore ideas that could be big if you could find a cheaper distribution strategy other than ads, ie social, virality, etc. It also ignores ideas that don't have demand yet.
By this analysis you guys would have likely killed AirBnb and Dropbox.