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Rachel Greenberg

Rachel Greenberg

3 years ago

The Unsettling Fact VC-Backed Entrepreneurs Don't Want You to Know

More on Entrepreneurship/Creators

Jenn Leach

Jenn Leach

3 years ago

What TikTok Paid Me in 2021 with 100,000 Followers

Photo by Catherina Schürmann on Unsplash

I thought it would be interesting to share how much TikTok paid me in 2021.

Onward!

Oh, you get paid by TikTok?

Yes.

They compensate thousands of creators. My Tik Tok account

Tik Tok

I launched my account in March 2020 and generally post about money, finance, and side hustles.

TikTok creators are paid in several ways.

  • Fund for TikTok creators

  • Sponsorships (aka brand deals)

  • Affiliate promotion

  • My own creations

Only one, the TikTok Creator Fund, pays me.

The TikTok Creator Fund: What Is It?

TikTok's initiative pays creators.

YouTube's Shorts Fund, Snapchat Spotlight, and other platforms have similar programs.

Creator Fund doesn't pay everyone. Some prerequisites are:

  • age requirement of at least 18 years

  • In the past 30 days, there must have been 100,000 views.

  • a minimum of 10,000 followers

If you qualify, you can apply using your TikTok account, and once accepted, your videos can earn money.

My earnings from the TikTok Creator Fund

Since 2020, I've made $273.65. My 2021 payment is $77.36.

Yikes!

I made between $4.91 to around $13 payout each time I got paid.

TikTok reportedly pays 3 to 5 cents per thousand views.

To live off the Creator Fund, you'd need billions of monthly views.

Top personal finance creator Sara Finance has millions (if not billions) of views and over 700,000 followers yet only received $3,000 from the TikTok Creator Fund.

Goals for 2022

TikTok pays me in different ways, as listed above.

My largest TikTok account isn't my only one.

In 2022, I'll revamp my channel.

It's been a tumultuous year on TikTok for my account, from getting shadow-banned to being banned from the Creator Fund to being accepted back (not at my wish).

What I've experienced isn't rare. I've read about other creators' experiences.

So, some quick goals for this account…

  • 200,000 fans by the year 2023

  • Consistent monthly income of $5,000

  • two brand deals each month

For now, that's all.

SAHIL SAPRU

SAHIL SAPRU

3 years ago

Growth tactics that grew businesses from 1 to 100

Source: Freshworks

Everyone wants a scalable startup.

Innovation helps launch a startup. The secret to a scalable business is growth trials (from 1 to 100).

Growth marketing combines marketing and product development for long-term growth.

Today, I'll explain growth hacking strategies popular startups used to scale.

1/ A Facebook user's social value is proportional to their friends.

Facebook built its user base using content marketing and paid ads. Mark and his investors feared in 2007 when Facebook's growth stalled at 90 million users.

Chamath Palihapitiya was brought in by Mark.

The team tested SEO keywords and MAU chasing. The growth team introduced “people you may know

This feature reunited long-lost friends and family. Casual users became power users as the retention curve flattened.

Growth Hack Insights: With social network effect the value of your product or platform increases exponentially if you have users you know or can relate with.

2/ Airbnb - Focus on your value propositions

Airbnb nearly failed in 2009. The company's weekly revenue was $200 and they had less than 2 months of runway.

Enter Paul Graham. The team noticed a pattern in 40 listings. Their website's property photos sucked.

Why?

Because these photos were taken with regular smartphones. Users didn't like the first impression.

Graham suggested traveling to New York to rent a camera, meet with property owners, and replace amateur photos with high-resolution ones.

A week later, the team's weekly revenue doubled to $400, indicating they were on track.

Growth Hack Insights: When selling an “online experience” ensure that your value proposition is aesthetic enough for users to enjoy being associated with them.

3/ Zomato - A company's smartphone push ensured growth.

Zomato delivers food. User retention was a challenge for the founders. Indian food customers are notorious for switching brands at the drop of a hat.

Zomato wanted users to order food online and repeat orders throughout the week.

Zomato created an attractive website with “near me” keywords for SEO indexing.

Zomato gambled to increase repeat orders. They only allowed mobile app food orders.

Zomato thought mobile apps were stickier. Product innovations in search/discovery/ordering or marketing campaigns like discounts/in-app notifications/nudges can improve user experience.

Zomato went public in 2021 after users kept ordering food online.

Growth Hack Insights: To improve user retention try to build platforms that build user stickiness. Your product and marketing team will do the rest for them.

4/ Hotmail - Signaling helps build premium users.

Ever sent or received an email or tweet with a sign — sent from iPhone?

Hotmail did it first! One investor suggested Hotmail add a signature to every email.

Overnight, thousands joined the company. Six months later, the company had 1 million users.

When serving an existing customer, improve their social standing. Signaling keeps the top 1%.

5/ Dropbox - Respect loyal customers

Dropbox is a company that puts people over profits. The company prioritized existing users.

Dropbox rewarded loyal users by offering 250 MB of free storage to anyone who referred a friend. The referral hack helped Dropbox get millions of downloads in its first few months.

Growth Hack Insights: Think of ways to improve the social positioning of your end-user when you are serving an existing customer. Signaling goes a long way in attracting the top 1% to stay.

These experiments weren’t hacks. Hundreds of failed experiments and user research drove these experiments. Scaling up experiments is difficult.

Contact me if you want to grow your startup's user base.

Raad Ahmed

Raad Ahmed

3 years ago

How We Just Raised $6M At An $80M Valuation From 100+ Investors Using A Link (Without Pitching)

Lawtrades nearly failed three years ago.

We couldn't raise Series A or enthusiasm from VCs.

We raised $6M (at a $80M valuation) from 100 customers and investors using a link and no pitching.

Step-by-step:

We refocused our business first.

Lawtrades raised $3.7M while Atrium raised $75M. By comparison, we seemed unimportant.

We had to close the company or try something new.

As I've written previously, a pivot saved us. Our initial focus on SMBs attracted many unprofitable customers. SMBs needed one-off legal services, meaning low fees and high turnover.

Tech startups were different. Their General Councels (GCs) needed near-daily support, resulting in higher fees and lower churn than SMBs.

We stopped unprofitable customers and focused on power users. To avoid dilution, we borrowed against receivables. We scaled our revenue 10x, from $70k/mo to $700k/mo.

Then, we reconsidered fundraising (and do it differently)
This time was different. Lawtrades was cash flow positive for most of last year, so we could dictate our own terms. VCs were still wary of legaltech after Atrium's shutdown (though they were thinking about the space).

We neither wanted to rely on VCs nor dilute more than 10% equity. So we didn't compete for in-person pitch meetings.

AngelList Roll-Up Vehicle (RUV). Up to 250 accredited investors can invest in a single RUV. First, we emailed customers the RUV. Why? Because I wanted to help the platform's users.

Imagine if Uber or Airbnb let all drivers or Superhosts invest in an RUV. Humans make the platform, theirs and ours. Giving people a chance to invest increases their loyalty.

We expanded after initial interest.

We created a Journey link, containing everything that would normally go in an investor pitch:

  • Slides
  • Trailer (from me)
  • Testimonials
  • Product demo
  • Financials

We could also link to our AngelList RUV and send the pitch to an unlimited number of people. Instead of 1:1, we had 1:10,000 pitches-to-investors.

We posted Journey's link in RUV Alliance Discord. 600 accredited investors noticed it immediately. Within days, we raised $250,000 from customers-turned-investors.

Stonks, which live-streamed our pitch to thousands of viewers, was interested in our grassroots enthusiasm. We got $1.4M from people I've never met.

These updates on Pump generated more interest. Facebook, Uber, Netflix, and Robinhood executives all wanted to invest. Sahil Lavingia, who had rejected us, gave us $100k.

We closed the round with public support.

Without a single pitch meeting, we'd raised $2.3M. It was a result of natural enthusiasm: taking care of the people who made us who we are, letting them move first, and leveraging their enthusiasm with VCs, who were interested.

We used network effects to raise $3.7M from a founder-turned-VC, bringing the total to $6M at a $80M valuation (which, by the way, I set myself).

What flipping the fundraising script allowed us to do:

We started with private investors instead of 2–3 VCs to show VCs what we were worth. This gave Lawtrades the ability to:

  • Without meetings, share our vision. Many people saw our Journey link. I ended up taking meetings with people who planned to contribute $50k+, but still, the ratio of views-to-meetings was outrageously good for us.
  • Leverage ourselves. Instead of us selling ourselves to VCs, they did. Some people with large checks or late arrivals were turned away.
  • Maintain voting power. No board seats were lost.
  • Utilize viral network effects. People-powered.
  • Preemptively halt churn by turning our users into owners. People are more loyal and respectful to things they own. Our users make us who we are — no matter how good our tech is, we need human beings to use it. They deserve to be owners.

I don't blame founders for being hesitant about this approach. Pump and RUVs are new and scary. But it won’t be that way for long. Our approach redistributed some of the power that normally lies entirely with VCs, putting it into our hands and our network’s hands.

This is the future — another way power is shifting from centralized to decentralized.

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Dr. Linda Dahl

Dr. Linda Dahl

3 years ago

We eat corn in almost everything. Is It Important?

Photo by Mockup Graphics on Unsplash

Corn Kid got viral on TikTok after being interviewed by Recess Therapy. Tariq, called the Corn Kid, ate a buttery ear of corn in the video. He's corn crazy. He thinks everyone just has to try it. It turns out, whether we know it or not, we already have.

Corn is a fruit, veggie, and grain. It's the second-most-grown crop. Corn makes up 36% of U.S. exports. In the U.S., it's easy to grow and provides high yields, as proven by the vast corn belt spanning the Midwest, Great Plains, and Texas panhandle. Since 1950, the corn crop has doubled to 10 billion bushels.

You say, "Fine." We shouldn't just grow because we can. Why so much corn? What's this corn for?

Why is practical and political. Michael Pollan's The Omnivore's Dilemma has the full narrative. Early 1970s food costs increased. Nixon subsidized maize to feed the public. Monsanto genetically engineered corn seeds to make them hardier, and soon there was plenty of corn. Everyone ate. Woot! Too much corn followed. The powers-that-be had to decide what to do with leftover corn-on-the-cob.

They are fortunate that corn has a wide range of uses.

First, the edible variants. I divide corn into obvious and stealth.

Obvious corn includes popcorn, canned corn, and corn on the cob. This form isn't always digested and often comes out as entire, polka-dotting poop. Cornmeal can be ground to make cornbread, polenta, and corn tortillas. Corn provides antioxidants, minerals, and vitamins in moderation. Most synthetic Vitamin C comes from GMO maize.

Corn oil, corn starch, dextrose (a sugar), and high-fructose corn syrup are often overlooked. They're stealth corn because they sneak into practically everything. Corn oil is used for frying, baking, and in potato chips, mayonnaise, margarine, and salad dressing. Baby food, bread, cakes, antibiotics, canned vegetables, beverages, and even dairy and animal products include corn starch. Dextrose appears in almost all prepared foods, excluding those with high-fructose corn syrup. HFCS isn't as easily digested as sucrose (from cane sugar). It can also cause other ailments, which we'll discuss later.

Most foods contain corn. It's fed to almost all food animals. 96% of U.S. animal feed is corn. 39% of U.S. corn is fed to livestock. But animals prefer other foods. Omnivore chickens prefer insects, worms, grains, and grasses. Captive cows are fed a total mixed ration, which contains corn. These animals' products, like eggs and milk, are also corn-fed.

There are numerous non-edible by-products of corn that are employed in the production of items like:

  1. fuel-grade ethanol

  2. plastics

  3. batteries

  4. cosmetics

  5. meds/vitamins binder

  6. carpets, fabrics

  7. glutathione

  8. crayons

  9. Paint/glue

How does corn influence you? Consider quick food for dinner. You order a cheeseburger, fries, and big Coke at the counter (or drive-through in the suburbs). You tell yourself, "No corn." All that contains corn. Deconstruct:

Cows fed corn produce meat and cheese. Meat and cheese were bonded with corn syrup and starch (same). The bun (corn flour and dextrose) and fries were fried in maize oil. High fructose corn syrup sweetens the drink and helps make the cup and straw.

Just about everything contains corn. Then what? A cornspiracy, perhaps? Is eating too much maize an issue, or should we strive to stay away from it whenever possible?

As I've said, eating some maize can be healthy. 92% of U.S. corn is genetically modified, according to the Center for Food Safety. The adjustments are expected to boost corn yields. Some sweet corn is genetically modified to produce its own insecticide, a protein deadly to insects made by Bacillus thuringiensis. It's safe to eat in sweet corn. Concerns exist about feeding agricultural animals so much maize, modified or not.

High fructose corn syrup should be consumed in moderation. Fructose, a sugar, isn't easily metabolized. Fructose causes diabetes, fatty liver, obesity, and heart disease. It causes inflammation, which might aggravate gout. Candy, packaged sweets, soda, fast food, juice drinks, ice cream, ice cream topping syrups, sauces & condiments, jams, bread, crackers, and pancake syrup contain the most high fructose corn syrup. Everyday foods with little nutrients. Check labels and choose cane sugar or sucrose-sweetened goods. Or, eat corn like the Corn Kid.

Al Anany

Al Anany

2 years ago

Because of this covert investment that Bezos made, Amazon became what it is today.

He kept it under wraps for years until he legally couldn’t.

Midjourney

His shirt is incomplete. I can’t stop thinking about this…

Actually, ignore the article. Look at it. JUST LOOK at it… It’s quite disturbing, isn’t it?

Ughh…

Me: “Hey, what up?” Friend: “All good, watching lord of the rings on amazon prime video.” Me: “Oh, do you know how Amazon grew and became famous?” Friend: “Geek alert…Can I just watch in peace?” Me: “But… Bezos?” Friend: “Let it go, just let it go…”

I can question you, the reader, and start answering instantly without his consent. This far.

Reader, how did Amazon succeed? You'll say, Of course, it was an internet bookstore, then it sold everything.

Mistaken. They moved from zero to one because of this. How did they get from one to thousand? AWS-some. Understand? It's geeky and lame. If not, I'll explain my geekiness.

Over an extended period of time, Amazon was not profitable.

Business basics. You want customers if you own a bakery, right?

Well, 100 clients per day order $5 cheesecakes (because cheesecakes are awesome.)

$5 x 100 consumers x 30 days Equals $15,000 monthly revenue. You proudly work here.

Now you have to pay the barista (unless ChatGPT is doing it haha? Nope..)

  • The barista is requesting $5000 a month.

  • Each cheesecake costs the cheesecake maker $2.5 ($2.5 × 100 x 30 = $7500).

  • The monthly cost of running your bakery, including power, is about $5000.

Assume no extra charges. Your operating costs are $17,500.

Just $15,000? You have income but no profit. You might make money selling coffee with your cheesecake next month.

Is losing money bad? You're broke. Losing money. It's bad for financial statements.

It's almost a business ultimatum. Most startups fail. Amazon took nine years.

I'm reading Amazon Unbound: Jeff Bezos and the Creation of a Global Empire to comprehend how a company has a $1 trillion market cap.

Many things made Amazon big. The book claims that Bezos and Amazon kept a specific product secret for a long period.

Clouds above the bald head.

In 2006, Bezos started a cloud computing initiative. They believed many firms like Snapchat would pay for reliable servers.

In 2006, cloud computing was not what it is today. I'll simplify. 2006 had no iPhone.

Bezos invested in Amazon Web Services (AWS) without disclosing its revenue. That's permitted till a certain degree.

Google and Microsoft would realize Amazon is heavily investing in this market and worry.

Bezos anticipated high demand for this product. Microsoft built its cloud in 2010, and Google in 2008.

If you managed Google or Microsoft, you wouldn't know how much Amazon makes from their cloud computing service. It's enough. Yet, Amazon is an internet store, so they'll focus on that.

All but Bezos were wrong.

Time to come clean now.

They revealed AWS revenue in 2015. Two things were apparent:

  1. Bezos made the proper decision to bet on the cloud and keep it a secret.

  2. In this race, Amazon is in the lead.

Synergy Research Group

They continued. Let me list some AWS users today.

  • Netflix

  • Airbnb

  • Twitch

More. Amazon was unprofitable for nine years, remember? This article's main graph.

Visual Capitalist

AWS accounted for 74% of Amazon's profit in 2021. This 74% might not exist if they hadn't invested in AWS.

Bring this with you home.

Amazon predated AWS. Yet, it helped the giant reach $1 trillion. Bezos' secrecy? Perhaps, until a time machine is invented (they might host the time machine software on AWS, though.)

Without AWS, Amazon would have been profitable but unimpressive. They may have invested in anything else that would have returned more (like crypto? No? Ok.)

Bezos has business flaws. His success. His failures include:

  • introducing the Fire Phone and suffering a $170 million loss.

  • Amazon's failure in China In 2011, Amazon had a about 15% market share in China. 2019 saw a decrease of about 1%.

  • not offering a higher price to persuade the creator of Netflix to sell the company to him. He offered a rather reasonable $15 million in his proposal. But what if he had offered $30 million instead (Amazon had over $100 million in revenue at the time)? He might have owned Netflix, which has a $156 billion market valuation (and saved billions rather than invest in Amazon Prime Video).

Some he could control. Some were uncontrollable. Nonetheless, every action he made in the foregoing circumstances led him to invest in AWS.

Steffan Morris Hernandez

Steffan Morris Hernandez

2 years ago

10 types of cognitive bias to watch out for in UX research & design

10 biases in 10 visuals

Image by Steffan Morris Hernandez

Cognitive biases are crucial for UX research, design, and daily life. Our biases distort reality.

After learning about biases at my UX Research bootcamp, I studied Erika Hall's Just Enough Research and used the Nielsen Norman Group's wealth of information. 10 images show my findings.

1. Bias in sampling

Misselection of target population members causes sampling bias. For example, you are building an app to help people with food intolerances log their meals and are targeting adult males (years 20-30), adult females (ages 20-30), and teenage males and females (ages 15-19) with food intolerances. However, a sample of only adult males and teenage females is biased and unrepresentative.

Image by Steffan Morris Hernandez

2. Sponsor Disparity

Sponsor bias occurs when a study's findings favor an organization's goals. Beware if X organization promises to drive you to their HQ, compensate you for your time, provide food, beverages, discounts, and warmth. Participants may endeavor to be neutral, but incentives and prizes may bias their evaluations and responses in favor of X organization.

In Just Enough Research, Erika Hall suggests describing the company's aims without naming it.

Image by Steffan Morris Hernandez

Third, False-Consensus Bias

False-consensus bias is when a person thinks others think and act the same way. For instance, if a start-up designs an app without researching end users' needs, it could fail since end users may have different wants. https://www.nngroup.com/videos/false-consensus-effect/

Working directly with the end user and employing many research methodologies to improve validity helps lessen this prejudice. When analyzing data, triangulation can boost believability.

Image by Steffan Morris Hernandez

Bias of the interviewer

I struggled with this bias during my UX research bootcamp interviews. Interviewing neutrally takes practice and patience. Avoid leading questions that structure the story since the interviewee must interpret them. Nodding or smiling throughout the interview may subconsciously influence the interviewee's responses.

Image by Steffan Morris Hernandez

The Curse of Knowledge

The curse of knowledge occurs when someone expects others understand a subject as well as they do. UX research interviews and surveys should reduce this bias because technical language might confuse participants and harm the research. Interviewing participants as though you are new to the topic may help them expand on their replies without being influenced by the researcher's knowledge.

The curse of knowledge visual

Confirmation Bias

Most prevalent bias. People highlight evidence that supports their ideas and ignore data that doesn't. The echo chamber of social media creates polarization by promoting similar perspectives.

A researcher with confirmation bias may dismiss data that contradicts their research goals. Thus, the research or product may not serve end users.

Image by Steffan Morris Hernandez

Design biases

UX Research design bias pertains to study construction and execution. Design bias occurs when data is excluded or magnified based on human aims, assumptions, and preferences.

Image by Steffan Morris Hernandez

The Hawthorne Impact

Remember when you behaved differently while the teacher wasn't looking? When you behaved differently without your parents watching? A UX research study's Hawthorne Effect occurs when people modify their behavior because you're watching. To escape judgment, participants may act and speak differently.

To avoid this, researchers should blend into the background and urge subjects to act alone.

Image by Steffan Morris Hernandez

The bias against social desire

People want to belong to escape rejection and hatred. Research interviewees may mislead or slant their answers to avoid embarrassment. Researchers should encourage honesty and confidentiality in studies to address this. Observational research may reduce bias better than interviews because participants behave more organically.

Image by Steffan Morris Hernandez

Relative Time Bias

Humans tend to appreciate recent experiences more. Consider school. Say you failed a recent exam but did well in the previous 7 exams. Instead, you may vividly recall the last terrible exam outcome.

If a UX researcher relies their conclusions on the most recent findings instead of all the data and results, recency bias might occur.

Image by Steffan Morris Hernandez

I hope you liked learning about UX design, research, and real-world biases.