Growth Hacking For Startups – when the Hotmail e-mail service was launched on July 4, 1996, no one knew the term “Growth Hacking “. However, the clever marketing strategy of Sabeer Bhatia and Jack Smith goes down in history as the first hacker of growth for startups.
It was American Independence Day in 1996 – an intentionally chosen day. Inventors Sabeer Bhatia and Jack Smith launched their free email service Hotmail that day.
Hotmail’s first marketing ideas were the usual costly outdoor billboards and radio ads.
What followed was a conversation between founders Sabeer Bhatia and Jack Smith and their investor Draper of the VC Company Draper Fisher Jurvetson. More than 80% of the first subscribers occurred as a result of referrals.
The First Growth Hacking For Startups in History
Entrepreneurs and beginners repeatedly need to search for new and cost-effective ways to market their products and services using all marketing revenue wisely.
If marketing can be built on a product, and the product is world-class, then it results in building a global hit like Hotmail. The best growth hacking For Startups ideas is usually very simple.
So Smith and Batia discuss things with their investors. The discussion centered on the question of how their company can quickly acquire new users without the necessary huge marketing budget.
Hotmail “PS: I Love You | Get your free email in Hotmail
While considering advertising, the founder of Hotmail suggested billboards. Draper (founder of Draper Fisher Jurvetson) suggested setting up PS: I love you. Get your free email at Hotmail at the bottom of every email.
The Hotmail team did not like this method and did not add it to the takeoff. Hotmail.com was launched on Independence Day 1996 and started by adding a couple of hundred users daily.
After much pleading, Draper was able to get Bhatia and Smith to apply his idea of adding a tag line at the bottom of every email: “PS I love you. Get your free email at Hotmail. ”The tag line had a clickable link that led people to the Hotmail page.
Finally, the Hotmail team agreed; even though they dropped the PS: I love you a little bit.
Henceforth, every time a customer sent an email, the tag line did its magic and connected to more users.
This easy but active Growth Hacking For Startups led to massive growth in their customer base, with that in addition to no advertising monies.
Hotmail “PS: I Love You | Get your free email in Hotmail Effect
What started as a drop turned into a flood, Hotmail continued to spread like a virus. Each time a user registered, he or she passed on the awareness and love of Hotmail to other users.
Although no one knows the term “growth hack” in 1996, it was actually what the founders of Hotmail thrived in doing.
With simple tricks, the company garnered several million users – without placing an ad.
The effect was almost immediate. Within hours the growth of Hotmail took the form of an old hockey stick curve.
They started with an average of 3,000 users a day, compounded every day. On Labor Day they registered 750,000 users and within six months they reached one million.
Five weeks after that they hit the 2 million user milestone, totaling more than 20,000 signups a day.
Even though Hotmail took six months to break the 1 million user barrier, the company reached a second million just five weeks later.
When Microsoft acquired Hotmail in less than a year, it pays a lot of money to integrate Hotmail’s large domain with MSN.
Hotmail “PS: I Love You | Get your free email in Hotmail Bottom Line
It’s not a bad brainwave effect to add a clickable tag to the foot of all emails. The service already has 12 million users. At the turn of the millennium, there were 65 million users.
At the moment, Hotmail is no longer available. Since 2013, Microsoft has been promoting the first growth in history under the name Outlook, which has now spread to millions of computers and smartphones.