Growth Marketing


This handbook teaches you to get people to your site or app — and get them to buy.

It is widely recommended within Silicon Valley because it actually teaches growth marketing to a professional level. It doesn’t waste time on self-evident, beginner’s advice.

If you’re skeptical of marketing advice, know that I am too. This handbook is unique in that I have years of diverse data: My marketing training program run thousands of experiments for clients like Microsoft, Imperfect Produce, Perfect Keto, and Tovala.

Read this intro page to understand which growth strategy makes sense for your product.

Who should read this

This material applies to companies of every size and vertical.

I cover both introductory and advanced B2B and B2C tactics. Marketers of every skill level will encounter new material.

If you're brainstorming startup ideas +

If you're a manager +

Growth hacking definition

Growth hacking is simply data-driven revenue maximization.

Growth “hacking” is a silly term. (It also goes by performance marketing and growth marketing.) I use it because it helps this handbook rank higher in Google.

Practice what you preach.

In reality, growth is not a series of “hacks.” It’s a rigorous methodology consisting of experimenting, collecting data, and leveraging human psychology. All in pursuit of directly maximizing revenue — not raising brand awareness or generating buzz.

Growth hacking versus traditional marketing+ Who’s Julian Shapiro? I spend hundreds of hours researching interesting topics. Then I write concise yet in-depth handbooks for free. There’s more to it if you want to read about me.

I’m also the founder of the marketing program, Demand Curve. We professionally train individuals and companies to become better marketers then get them jobs.

The growth funnel

Before you dive into this handbook’s tactics, let’s develop an intuition for which growth tactics will likely succeed for your company.

To do this, I must introduce the growth funnel. It’s the journey a customer takes through your advertising and product experience:

Acquisition → Conversion → Engagement → Revenue → Referral

I. Acquisition

An acquisition “channel” is a place you source potential customers from. For example, ads, content marketing, and sales are all acquisition channels.

Channels separate into two broad categories:

Paid channels — Paid channels include advertising, sponsorships, and affiliate marketing. Here, “paid” means you’re paying for channel performance as it scales. For example, for every click, impression, or referred sale, you’re paying. Unpaid channels — Unpaid channels include content marketing, offline networking, sales, virality, and PR. Here, “Unpaid” doesn’t mean these channels are free, but rather you’re not paying more as performance scales. For example, you’ll pay for the labor to have a blog post written. But the resulting SEO traffic doesn’t cost you on a per-visit basis. This is great — unpaid channels can have unbounded upside! This handbook teaches the most popular paid channel: Ads.

It also teaches two unpaid channels: Content Marketing and Sales. As I explain below, many companies find that only unpaid channels will ever work for them.

II. Conversion

When visitors are intrigued by what you’re offering (on your website or in-person), some of them “convert” into registered users or paying customers.

“Conversion events” are the business-critical events along your product’s funnel.

For example, a website visitor may first convert into a registered user. Then, after using your app for a while, they might later convert into a paying customer.

You’ll learn conversion optimization through Landing Pages, A/B Testing, and Ads.

III. Engagement

At the point of Engagement, we’ve already acquired users and converted them into registered users.

But now we need them to engage if they’re ever going to pay us.

Many businesses will handhold a user to teach them how the product works. Because educated users are more likely to become purchasers.

This handbook teaches engagement through User Onboarding.

IV. Revenue

Your revenue per customer can be maximized through cost reduction, conversion rate optimization, pricing optimization, cross-selling other products, and retention.

Unfortunately, this topic is outside the scope of this handbook.

V. Referral

You need to make your product so good that customers do your selling for you. It’s the most cost-effective way to scale your business in the long-term.

Thankfully, you don’t need to be a viral consumer app to accomplish this. Many B2B companies grow exclusively through word-of-mouth.

This handbook teaches referrals at the bottom of the User Onboarding page.

Tip — See the bottom of your screen for quick navigation links. Growth funnel loops

Succeeding at acquisition

This handbook focuses on the first two steps of the funnel: Acquisition and Conversion.

So let’s introduce the cold reality of acquisition.

Succeeding at paid channels

Most companies never get paid acquisition channels to work. If they did, more companies would be successful.

Specifically, most companies are unable to profitably acquire paying users through ad networks such as Facebook Ads, Instagram Ads, and Google AdWords.

If they do get one or more of these channels to work, it’s a holy grail if paired with strong word-of-mouth: Paid channels let you scale big and fast while (unpaid) customer referrals reduce the average cost of customer acquisition.

Why is paid difficult to make work? Here’s the criteria that determine success:

Profit margins — How much profit you earn per sale is critical. Consider how it’s hard to acquire an ecommerce customer for less than $30 USD on Facebook or Instagram, which are typically the cheapest ad channels. If you don’t earn at least that amount in the lifetime of a customer, these channels won’t be viable. Note that SaaS companies have it worse: It’s usually at least a couple hundred dollars to acquire a customer. Addressable market size — Your market size matters. This is determined not only by how many people want your product, but are actually capable of buying your product (e.g. aren’t geographically restricted), want your particular product, want it now, and can afford it. The resulting audience is smaller than marketers estimate. And to scale Facebook and Instagram, you’ll want to advertise to at least a few million people. (This amount is not required to successfully run ads — just ideal.) Degree of product demand — How badly does your addressable market want your product? If your product is a non-critical nicety, you’re at a disadvantage compared to, say, someone selling health insurance to people urgently needing health insurance. In short, the more people truly need you, or the more people are already buying your product category, the better your pitch resonates. To succeed with ads, your product must cross a threshold for all three criteria:

Profit threshold — You must earn per customer at least as much as it costs to acquire a customer from that ad channel. However, you can include the earnings generated from the customers the paid-for customer refers. Market size threshold — You must have an addressable market big enough to be identified en masse through the ad channel’s targeting. (This depends on the channel.) Otherwise, you’ll saturate your small audience and not achieve scale. Product demand threshold — You want to sell a product category that people are already buying or otherwise instinctively feel they should buy upon learning of it. To accomplish the latter, you need a product that is extremely appealing. You won’t definitively know whether your product crosses these thresholds until you’ve spent a statistically significant amount of money on each ad channel. This is often around $1,000-$2,000 USD per channel.

(On the Ad Channels page, I’ll walk you through each.)

If you fail to pass these three thresholds and ad channels are therefore not viable, you’ll instead be relying on word-of-mouth, content marketing, PR, sales, and other unpaid channels that cost less per customer acquisition.

That’s completely fine. Succeeding at paid acquisition isn’t a necessity. It’s just helpful because it lets you scale easily. And the only other easy channel to scale is virality. So if you can’t make either work, you’re in for a longer growth journey.

By the way, here’s my podcast interview in which I dive much deeper into this.

Succeeding at unpaid channels

Here’s the success criteria for the four most effective unpaid channels:

Search-engine-optimized content — Is your product something people are already Googling for en masse? Then Content Marketing is viable. In fact, your core marketing competency should now be optimizing content: Hire writers instead of ad experts. Write, write, write. Network effects — Network effects require users to recognize and care that they receive a significantly improved product experience when they invite other people. This happens rarely. It typically only occurs in social networks (e.g. WhatsApp) or broad business collaboration apps (e.g. Slack, Dropbox). I cover virality-related topics at the bottom of Onboarding. Word-of-mouth — WOM is the growth that occurs outside of your marketing efforts. It’s when people voluntarily advertise you to others. The criterion for word-of-mouths’ success is whether your product blow people’s minds. If so, awesome, you will grow from word-of-mouth, and it’ll cost nothing — but it might take years to snowball into a large customer base. To accelerate word-of-mouth, make it easy and fun for people to share. Sales — The criterion for sales success is whether you can get your ideal customers to talk to you (e.g. via phone, email, or in-person). I teach how to do this on the Sales page. Note that sales only applies to companies with significantly high profit margins (typically $1,000+) because the labor costs of researching, pitching, and negotiating every sale must be recouped. Everything else — Of the remaining unpaid channels, most are often ineffective. Public relations and social media, for example, typically only work for a handful of businesses (trend exploiters and lifestyle companies, respectively). And those channels are outside the scope of this handbook. Tip — Browse this handbook using the links at the bottom of your screen.

Don’t just focus on paid acquisition

Even companies that do get ad channels to work don’t often get them working at scale for more than a few months.

Eventually, audiences may saturate and diminishing returns can kill profitability. So, you should plant seeds for other channels to succeed in the long-term:

SEO — From day one, write content for SEO. (If applicable.) It takes months — often over a year — for content to reach the front page of Google. Product quality — Build an amazing product people can’t stop talking about. Then further incentivize word-of-mouth through referral programs or community building. These programs cost relatively little and can work on autopilot. Funnel optimization — The better your funnel performs, the more you can tolerate diminishing ad performance. So don’t rely exclusively on ad optimization to reduce your ad acquisition costs; also have the best-tuned website, onboarding flow, and up/cross-selling experience so you receive every dollar possible from happy users. We’re ready to introduce the minimum viable growth plan everyone should pursue.

The minimum viable growth plan

Build an amazing product that naturally encourages word-of-mouth. Kickstart word-of-mouth with paid ad traffic. Even if it’s temporarily unprofitable. Now, spend the majority of your marketing resources optimizing your growth funnel: At every step, A/B Test conversion on the traffic you’re paying for. Once you have a profitable and streamlined funnel, it’s time to scale. Aggressively test every potentially viable channel.

The right growth tactics for your company

With our growth plan in hand, we’re missing one thing: What my experience running growth for 40+ companies suggests is the best tactic for yourbusiness.

B2C businesses If you sell to consumers:

B2C ecommerce companies selling physical goods — You’ll most likely succeed with Instagram Ads, Content Marketing, and PR. You might succeed with Pinterest Ads, Google AdWords, and Google Shopping. B2C mobile app — You’ll most likely succeed with Instagram Ads and Apple Search Ads. You might succeed with Snapchat Ads, TapJoy, and referrals. B2C SaaS app — You’ll most likely succeed with Facebook Ads and Content Marketing. You might succeed with Google AdWords and affiliate programs. B2C (or B2B) bricks and mortar — You’ll most likely succeed with Facebook Ads, Instagram Ads, Yelp Ads, Content Marketing, and PR. You might succeed with Snapchat Ads, Google AdWords, Google Display Ads, and affiliates. Don’t be overwhelmed by all those links. You can ignore them for now. This handbook will walk you through most of them over the coming pages. B2B businesses If you sell to businesses:

Niche B2B with high average revenue per user (ARPU) — An example of this category is an enterprise software product charging $1,000+ per month. You’ll most likely succeed with Sales (cold email, networking, and LinkedIn messages) and lead generation through Facebook Ads and Google AdWords. You might succeed with Instagram Ads and Content Marketing. Broad B2B with high ARPU — For example, a software product charging $100 per month to help run small business accounting. The previous bullet applies here too, with two tweaks: 1. You might be able to defer sales in favor of ads. Ads are easier and faster to scale. 2. Content marketing is likely to work, and should be prioritized. Niche B2B with low ARPU — For example, a software product for web developers that charges $25 per month. 🚨Rethink your business model if you’re wanting to make more than $2mm USD per year, because you are unlikely to. Niche B2B businesses with low ARPU can neither afford ad channels nor sales. Broad B2B with low ARPU — For example, a software product for marketers that charges $25 per month. You’ll most likely succeed with Content Marketing and Google AdWords. (And Apple Search Ads if you’re a mobile app.) You might succeed with a referral program. Again, here’s my podcast interview in which I dive much deeper into these topics.

If you want professional training

My team and I will train your company’s marketers to become much better at growth. Check out Demand Curve.

If you’re an individual looking for career training plus a better-paying job in growth, we train people for that too.

Finally, we also help companies hire good growth marketers.

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