In today's digital age, where information is abundant and readily available, it's easy to feel overwhelmed and drowned in a sea of content. This is where curators come in – they act as life preservers, rescuing us from the chaos and delivering only the most valuable and relevant information. These curators are often domain experts or individuals with a deep passion for a particular topic, devoting countless hours to sift through the garbage and collect the gems.

Kazuki Nakayashiki

Hatched by Kazuki Nakayashiki

Aug 29, 2023

4 min read

0

In today's digital age, where information is abundant and readily available, it's easy to feel overwhelmed and drowned in a sea of content. This is where curators come in – they act as life preservers, rescuing us from the chaos and delivering only the most valuable and relevant information. These curators are often domain experts or individuals with a deep passion for a particular topic, devoting countless hours to sift through the garbage and collect the gems.

But what sets good curators apart from the rest? It's their dedication to quality over quantity. A good curator understands that the value lies in the carefully selected resources they present, not in bombarding their audience with an overwhelming amount of content. They take the time to format and present the information in a readable and easily digestible manner, ensuring that their audience can quickly grasp the key insights without feeling overwhelmed.

Similarly, when it comes to startups, investors are constantly on the lookout for red flags and magic numbers in the company's metrics. One key aspect they consider is the acquisition loop – how a cohort of new users leads to another set of new users. This acquisition loop is crucial in driving growth and determining the scalability and repeatability of a startup's success.

To understand the quality of these loops, investors need to examine the product's acquisition mix. This breakdown of signups by channels and time periods provides valuable insights into the proprietary and repeatable nature of the dominant channels. Are these channels creating sustainable loops that can fuel long-term growth, or are they merely one-time spikes that won't scale over time?

Furthermore, it's essential to consider the source of these signups and the activation rate by channel. The quality of new users plays a significant role in determining the long-term success of a startup. If all users are coming from a single source or low-quality channels, it's unlikely that the growth will be sustainable. On the other hand, if marketing efforts are directed towards high-quality channels, it bodes well for the future scalability of the business.

But it's not just about acquiring new users – engagement is equally important. For network-based products like Dropbox or Slack, active users need to engage with each other to create a vibrant and thriving community. On the other hand, utility-based products rely on users' actions in one time period to set up engagement in the future. In both cases, the goal is to create a social feedback loop that encourages users to re-engage with the product organically.

To achieve this, easy content creation becomes crucial. Users should find it effortless and enjoyable to create content within the network. This not only boosts engagement but also helps in increasing the density of connections within the network. Relevant and meaningful connections are vital for the success of any network, as they drive user interaction and create a sense of value for the users.

When examining engagement metrics, it becomes clear that they are challenging to move compared to acquisition metrics. As a result, it's often better to assume that the curves are what they are and focus on new user activation and up-selling users from one frequency segment to another. By providing new use cases and encouraging users to explore different aspects of the product, there is significant upside potential for growth.

In a world where content overload is a constant challenge, curation as a service has gained immense importance. Just as curators rescue us from drowning in a sea of information, startups can benefit from curating their user experience and content. By becoming curators themselves, startups can guide users through their product, presenting only the most valuable and relevant information, and ensuring a seamless and enjoyable experience.

In conclusion, whether it's through the lens of startup metrics or the concept of curation, the underlying theme is the same – quality over quantity. By focusing on creating sustainable acquisition loops, encouraging organic engagement, and curating the user experience, startups can set themselves up for long-term success. Here are three actionable pieces of advice to consider:

  1. Prioritize the quality of your acquisition channels: Instead of chasing one-time spikes, focus on channels that generate high-quality users consistently. By understanding the activation rate by channel, you can identify which channels are driving sustainable growth.

  2. Foster organic engagement: Create a social feedback loop within your product by making content creation easy and enjoyable for users. Encourage users to engage with each other, building relevant connections and increasing the density of engagement within your network.

  3. Embrace curation as a service: Just as curators rescue us from content overload, startups can benefit from curating their user experience. By presenting only the most valuable and relevant information, you can guide users through your product and ensure a seamless and enjoyable experience.

By incorporating these strategies into your startup's growth plan, you can navigate the challenges of the digital landscape and set yourself up for long-term success.

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