5 Growth Hacking Strategies for a Startup

Promoting a brand-new startup can seem daunting, especially with the intense competition for market share and the constant influx of new companies. But, it doesn't have to be a hopeless endeavor. By embracing innovative strategies, it's possible to effectively market a startup without breaking the bank.

As the saying goes, "build it and they will come" doesn't apply in the startup world. But, that doesn't mean acquiring a user base needs to be expensive. For instance, when Crazy Egg was launched they were able to attract over 100,000 users with only a $10,000 marketing budget. The key is utilizing growth hacking tactics to propel your startup forward and make it profitable.

Growth hacking is focused on expanding your user base rapidly. It's like a sales funnel on steroids- a set of tools and methods designed to quickly increase your user base and grow your revenue. With the right approach, growth hacking can help give your startup the boost it needs to get off the ground and achieve success.

If your startup is experiencing difficulty, these 5 tips could help you navigate through the challenges and guide your business towards success:

Traction vs. growth

Traction is the initial phase of your startup journey, where you acquire your first set of users and gather feedback on your product. This is when you determine whether users are converting to paid ones, if they are satisfied with the product, and if they have any suggestions for improvements. Traction is often described as a slow process, similar to a slowly dripping faucet, with a limited number of users coming in, which may not be enough to generate revenue.

In contrast, Growth is the next step in the journey when your startup takes off and the user acquisition rate increases rapidly. It is like turning on a full-force faucet, with a large influx of users. Growth can only happen when you have a solid traction base to begin with.

To achieve growth, you need to take the feedback from your early users and improve your product to make it stand out from the competition. This is often described as the “lean startup process”, which includes ideation, product development, traction, and growth.

When you start to gain traction, it's essential to ensure that your product is ready for the next level, and that your marketing and growth efforts align with this. Metaphorically speaking, it's like making sure your car is ready to hit the road before the wheels hit the pavement.

In summary, traction is the initial step of the startup journey, where you acquire your first users and gain feedback. Growth is the next phase, where you take that feedback and use it to improve your product and scale your user acquisition efforts.

Start by setting clear goals

Scientific research has shown that when individuals write down their goals, they are more likely to achieve them. This is especially true for the top 1% of high achievers, who write down their goals and review them regularly.

However, simply having a broad goal such as "making money" or "growing your user base" is not enough. It is crucial to be specific about what you want to achieve and when. For example, if you need to acquire 100 paid users by the end of the year to sustain your payroll and expenses, or if you're looking to expand your startup by reaching profitability.

Moreover, it is essential to set short-term and long-term goals for yourself, for example, setting a goal of acquiring 100,000 users immediately to help you reach your long-term goal of selling the company. However, it is also important to note that long-term strategies can change, and it's okay to adapt to the changes as you go.

One popular method of setting effective goals is using the S.M.A.R.T. goals framework, which stands for Specific, Measurable, Attainable, Relevant, and Time-based. It is an acronym that can be used for all types of goals, whether it be related to fitness, retirement planning or startup growth.

For example, if you are looking to acquire your first 100 paid users for your app, you need to make sure your goal is Specific, Measurable, Attainable, Relevant, and Time-based. Instead of just stating "get 100 paid users", make sure your goal is specific and defines what the outcome is that you desire such as "Earn $5,000 in recurring monthly revenue by the end of this quarter".

To set effective goals, you need to ask yourself what you want to achieve and how you plan to accomplish it. Moreover, setting a deadline for your goals is important as it adds a sense of motivation and pressure. However, it's crucial to keep in mind to set a realistic deadline, otherwise, it might lead to unnecessary stress and disappointment.

It's important to keep in mind that the "A" in S.M.A.R.T. stands for "Attainable", meaning, the goals set should be achievable and realistic. Once you have your goals written down, make sure to regularly review them and evaluate your progress. One way to make sure you stay on track is to set reminders for yourself. A personal digital tool like Evernote can be useful here, as it syncs across all your devices and you can set recurring reminders for yourself to review your progress.

Create a pre-launch email list

Building an email subscriber list is a key growth hacking strategy that is critical for your startup's success. The saying "the money is in the list" refers to the importance of email subscribers as it can provide a direct and reliable channel of communication with your target audience. Unlike social media channels, an email subscriber list is something you fully own, meaning, even if a social media platform shut down or changes its policies, you would still have a way to reach out to your audience.

In the early stages of your startup, you can begin to build your list by creating targeted landing pages. A landing page is a standalone page that is separate from your main website and is designed to convert visitors into subscribers or customers. However, just having a visually pleasing landing page is not enough. It's important to test and optimize the page to increase the conversion rate. Research shows that testing frequently almost triples the chances of a page converting over 5% of users.

Find corporate or affiliate partners

Partnering with other apps or products is an effective growth strategy to increase awareness about your product. A great example of this is Samsung and Dropbox, where Dropbox offered Samsung customers who purchased a new phone or camera 50GB of free storage for two years, instead of the usual 5GB plan. This was a win-win strategy for both companies as Samsung customers got to enjoy more storage space and Dropbox was able to acquire new customers who were likely to convert to paid users after the two years.

Another approach is starting your own affiliate program, where you collaborate with a network of individuals or companies who promote your product and when one of their users clicks their link and makes a purchase, you pay the affiliate a commission of the sale.

This is an effective way to market your product with minimal upfront costs. Influencers, bloggers, and online personalities are the best assets for a successful affiliate program.

You can reach out to these individuals with an email pitch, a link to a free trial, and an offer to become an affiliate if they like your product.

You can also outsource this task to an influencer marketing agency, which can be faster and more efficient, but will come with additional costs.

Make sure to set the price of your product in a way that allows room for affiliate commissions while still making a profit.

Encourage viral sharing through word of mouth, reviews, and backlinks.

Encourage viral sharing

Another way to grow your startup is by tapping into your existing user network to encourage them to refer their friends and family to your product. Dropbox is a great example of this, as they offer incentives such as extra storage space for referrals. This not only boosts your user base but also increases social proof, which is the psychological effect that people are more likely to use a product or service if they see others using it as well. Social proof can be a powerful marketing tool and can be achieved by encouraging users to share their experience on social media. There are various ways to encourage sharing, such as offering incentives, asking users to share, or by using vanity as a motivator for achievement-based apps like Fitocracy. This is a cost-effective way to grow your startup by leveraging your existing user base and their networks.