Growth Hacking for Product Managers: Maximizing Value and User Experience

Growth Hacking for Product Managers: Maximizing Value and User Experience

In the world of product management, the ultimate goal is to create a successful product that delivers value to its users. This value can be measured by how many people are experiencing and benefiting from the product. This is where the concept of "growth hacking" comes into play. Growth hacking, as defined by Chris Long, is all about finding shortcuts and easy solutions to achieve growth in a short period of time.

So, how can product managers apply growth hacking principles to their work? The key is to make small, continuous changes to the product instead of big and risky ones. By doing so, you can identify the smallest change that can create the biggest impact for the user in the shortest amount of time. This approach allows for quick iterations and adjustments based on user feedback and data analysis.

Now, let's shift our focus to another important aspect of product management - advisor shares. According to Carta, having a vesting schedule for advisors is crucial. Just like you have vesting schedules for yourself and your employees, advisors should also have a structured agreement. Typically, these agreements span over two years, with monthly vesting and no cliff.

Before promising equity to an advisor, it's worth considering if they would be willing to invest in your company instead. By investing directly, advisors have more skin in the game, and it also sends a valuable signal to future investors. It's essential to choose advisors carefully, treating the process as if you were selecting a co-founder. Advisors can either be a critical asset to your company's success or a distraction and waste of time.

When selecting an advisor, it's important to identify the type that aligns with your needs. The first type is the "name" advisor, whose main benefit is through association. This advisor brings credibility and connections to the table. The second type is the "practical" advisor, who acts as a sounding board and provides valuable guidance based on their expertise. It's not uncommon for advisors to also invest directly in the company, showing their commitment and belief in its potential.

Once you've found the right advisor, it's crucial to formalize the relationship through a signed agreement. This agreement should outline the advisor's domain of expertise, the specific areas they will assist you with, and the percentage of equity or other compensation they will receive. Documentation is key, especially when equity is involved or promised. It's recommended to consult with a lawyer and work together with the advisor to create an agreement that benefits everyone involved.

In terms of equity allocation for advisors, it's important to consider the stage at which they join the company. Typically, the earlier an advisor joins, the higher the fully-diluted amount of equity they will receive. However, it's advisable to avoid a four-year vesting schedule for advisors, as their value is usually delivered upfront. Revisiting the relationship after a year or two allows for reassessment and potential adjustments.

Now that we've explored both growth hacking and advisor shares, let's draw some common points between these two topics. Both concepts emphasize the importance of making strategic decisions that maximize value and growth. Growth hacking focuses on finding efficient and impactful solutions for the user, while advisor shares ensure that the right advisors are aligned with the company's goals and are incentivized appropriately.

In conclusion, as a product manager, it's crucial to adopt growth hacking principles to drive value and growth for your product. By making small, continuous changes, you can iterate and optimize based on user feedback and data analysis. Additionally, when considering advisors, choose wisely and formalize the relationship through a signed agreement. Remember to document the specifics of the relationship, especially when equity is involved. With these actionable pieces of advice in mind, you can navigate the world of product management with a focus on maximizing value, growth, and success.