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"How do you build a $100 million business? --> Simple, start with a $1 Billion business ;-)Sorry, I couldn't help myself!
Love your post - i talk about this type of segmenting with my companies a lot!
Nice article and useful..
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I'd add to flies hunting that virality itself is not enough as it doesn't provide churn which is supported by network effect--which is different from virality. It is network effect that keeps flies using the service for a year, not virality. So, Facebook is not so much in "viral", but rather "network effect" category. Pokemon Go is in "viral" category, but the hype slowly goes down increasing retention.
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This is really helpful - thanks Christoph. I'll certainly bear this framework in mind when preparing & presenting future growth plans (all of our early customers fall between deer and elephants).
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Nice post! Our product -ProfitBooks.net falls in Rabbit hunting category - Its similar to one of your portfolio companies - Freeagent.. and I can tell you that its the most exciting category of them all :-)
If you're still looking for ones you might have missed, we might as well add the "WHALE". A $100 Million Dollar client ... (they *do* exist, right?)
Oops! I see the Jindou Lee has already broached the subject of "whales".... pardon me for that...
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Love this post Chris. Do you see many companies that successfully hunt a mix of these animals?
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A great read, even for early SaaS Startups!
Excellent analysis, thank you!
I guess this puts our company Hoodle.com, somewhere along the line of Jackalope hunter, (which everyone knows are much larger/ meatier than your garden-variety rabbit)...with our long-term plan to be taking down pachyderms over the next year or so. :~)
My question is: are there examples of teams who have pulled this off effectively? & what was the key to getting it accomplished?
Thanks in advance for your time!
Thanks, Ron! LOL on Jackalopes ... gotta add that to the next version of the diagram.
The truth is, of course, that what I've shown in my article is a strong simplification (in order to bring across the message), and in reality, there are lots of creatures between those 5 ones I chose.
Between rabbits and deers can be a good position to be in ... depending on the complexity of your product, you might be able to make outbound (tele) sales work at this level of ACV.
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Fantastic post --"Why we have a strong focus on rabbit hunting SaaS companies nonetheless is something for another post"I'm focused on investing in that middle / SMB / "rabbit hunting" SaaS sector as well, and I look forward to your further posts on the topic.
Curious - is this still an active blog..
Can you comment some more on the challenges of OEM rabbit hunting? I'm interested as I think it may be the right path for my venture: spreadserve.com. The product solves a big corporate problem, but its nature means it's difficult to state the value prop to inbound devs or end users.
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All wrong , the best way is to have all people (about 6T in the planet) who pay 1 cent per day - automatically by his government - to a site of world census data with a click of a chip in their imprinted under the skin , and then the site make 10 redirect every day , to reach 10 other sites that they do to reach other 1000 sites each , earning 1 cent for "repayment cost of counting people" every day to the owner who may be a new worldwide bank of credit "interest-free ", eliminating the need to print 80 percent of paper money every day , world problems , foreign exchange , finance petty , unnecessary costs , feeding the planet for new resources for survival ... hic I am a bit ' cheerful ?
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A very inspiring model that really visualizes the concept. I've been using a somewhat similar scale, but with more traditional alpha-numeric designations, namely: fly=B2C, mouse=B2P(prosumer), rabbit=B2D(developers/designers), deer=B2B, and elephant=B2E(enterprise). But the animal metaphor is much better, so I took the liberty of linking to your article from my instruction for novice entrepreneurs: http://miranor.com/canvas/ (in the "Market size" box). Hope it's okay with you.
Off topic, but the plural of deer is deer. bothered me while reading that section
Actually, both "deer" and "deers" are acceptable plural forms. See http://www.merriam-webster....
Only if you want to sound like you just stepped off the boat.
Great Article. Could co-relate hunting rabbit it to my product Interview Mocha. Thanks.
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A well conceived article about building your business and giving novice entrepreneurs a chance to think about earning millions of dollars in revenue. The reference given to animals here in accordance to customers makes it a bit weird but otherwise the whole post is quite informative and interactive to read.
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Mobile games will be hunting flies I think, being viral helped Temple Run and Farmville not a long time ago. I think there still is space to catch 10 Million flies in the mobile gaming market :)
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