[Dmba-c8-l] user growth

Tim Smith tsmith2 at cca.edu
Wed Apr 12 12:56:24 PDT 2017

 Hi C8 students,

*User growth* is a critical component of any new business venture. One
example is Airbnb. The founders of "AirBed & Breakfast" launched with a
minimum viable product (MVP): *rent an air mattress in the home of a host
and enjoy reasonable rates with locals who know the area.*

Slowly the MVP was improved based on the build-measure-learn feedback loop
and the user growth accelerated. It took two years before AirBed &
Breakfast became Airbnb and reached 100K users with $1 million in revenue
(their cut of the booked night fee). In the third year, revenue grew to
$8.4 million and 700K users. In the fourth year, revenue grew to $52.8
million with 4 million users.

Lelia Janah <https://lxmi.com/pages/impact> founded Samasource several
years ago. Six months ago, Leila launched LXMI ("luxe-me") to generate
revenue with a single skin care product and help people in Uganda improve
their income. Today, Leila launched a user growth incentive
that you may find interesting. She is offering a chance to win an
all-expenses paid trip to Uganda (traveling with her) for anyone who
provides the email addresses of ten friends. Imagine if she has a thousand
users now and 10% of them share 10 emails each. That will double her base
of potential customers.

Tim Smith
Associate Chair & Associate Professor
MBA in Design Strategy
California College of the Arts
1111 Eighth Street
San Francisco, CA 94107
415-566-3488 office
415-377-9881 <(415)%20377-9881> mobile
tsmith2 at cca.edu
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