Every interface problem is trying to close what we call the knowledge gap. Basical, you're going to turbo tax. You're down loading that sophoware you are paying for it. It is a very, very high intent. Every conversion rate problem looks like every other user interface problem. The concept or framework that id like to use to explain how to solve any user inter face problem is using something called the knowledge spectrum. This was created by amazing interface designer named a gerspol and based agin a knowledge of spectrum.
We've cut down the seventh week of lectures to be even shorter and combined them into one podcast.
Kevin Hale gave both lectures this week. Kevin’s a partner at YC and cofounded Wufoo. His first lecture is on how to improve conversion rates and his second lecture is on pricing for startups.
Y Combinator invests a small amount of money ($150k) in a large number of startups (recently 200), twice a year.
Learn more about YC and apply for funding here: https://www.ycombinator.com/apply/
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Topics
00:00 - Intro
00:27 - Kevin Hale - How to Improve Conversion Rates
1:02 - Why we care about conversion rates
2:02 - Shareware conversion rate is .5%
2:22 - Casual download games is 2%
2:32 - Freemium SaaS range from 1.5 to 5%
3:57 - Knowledge spectrum
5:52 - The one button interface
6:37 - What is the call to action? And the magic moment.
8:02 - What is it?
8:38 - Is it right for me?
9:02 - Is it legit?
9:22 - Who else is using it?
9:52 - How much? What's the catch?
10:39 - Where can I get help?
11:30 - Kevin Hale - Startup Pricing 101
13:15 - Monetization gives you the biggest bang for your buck
14:35 - Price thermometer
16:35 - Mistake 1 - Prices are too low
16:55 - Mistake 2 - Underestimate costs
17:08 - Mistake 3 - Don't understand your value
17:27 - Mistake 4 - Focus on wrong customers
18:05 - Sales and profit over a product's life
19:20 - Why is pricing innovation hard?
21:27 - How to optimize prices
22:32 - $1B formula
24:05 - Price and complexity
26:55 - 10 - 5 - 20 rule
28:20 - Summary