odesk sales growth - case study
DESCRIPTION
This case study was prepared for the Mercato Sales Summit in Salt Lake City on February 5, 2010. The presentation describes oDesk's rapid sales growth and several tips that might be helpful for increasing sales at your company.TRANSCRIPT
QuickTime™ and aNone decompressor
are needed to see this picture.
Brian Golerwww.odesk.com [email protected]
Mercato Sales SummitFebruary 2010
QuickTime™ and aNone decompressor
are needed to see this picture. 2
What is oDesk?oDesk is the marketplace for online work teams with the best business model for both buyers and providers
– For buyers: Guaranteed workEvery hour billed is an hour worked
– For providers: Guaranteed paymentEvery hour worked is an hour paid
Background• 28 Employees, 80 remote
oDesk consultants
• HQ in Menlo Park, CA
• Funded by Benchmark, DAG, Globespan, & Sigma; raised $29MM to date ($15MM in the bank)
• Started in 2002
Where are we today? Over 450,000 tested and rated knowledge
workers representing hundreds of technical disciplines & skills
Both individual freelancers and development companies from 150+ countries
Buyers post both Time-Based assignments and Fixed Price Jobs
Buyers pay for verified hours worked or for milestones delivered
Avg. time to hire is <4 days; Avg. # candidates per job is >20
Over $121MM in gross services performed….Over $121MM in gross services performed….
QuickTime™ and aNone decompressor
are needed to see this picture. 3
Demo
“oDesk is a great way to make it feel like an employee who is across an ocean is working inside your local office”
Guaranteed Work = Guaranteed Payment
Activity Logging shows keyboard and mouse events in each screen
shot interval
See work as it is being done
Unprecedented Real-time access and collaboration
with team
Pay only for verified work
done
QuickTime™ and aNone decompressor
are needed to see this picture. 4
Rapid and accelerating growth
Hours Worked by Week
10/06 – Eliminated sales team of 4
+450% over last 2 years
YoY marketing spend +30% 2007 - 2009
QuickTime™ and aNone decompressor
are needed to see this picture. 5
Online acquisition marketing– Paid search– SEO– Retargeting
Word-of-Mouth– Social media & promotions– Viral features– Referral programs
Partnerships / Third-party integrations
How do we acquire Buyers?
Sales Force
QuickTime™ and aNone decompressor
are needed to see this picture. 6
Direct (WOM) channels driving growth
BSUs by Channel
0
500
1,000
1,500
2,000
2,500
12/0911/0910/0903/0902/0901/0912/0811/0810/0809/08
Other
Ref. Sites
CPC
Organic
Direct
06/09 07/09 08/09 09/0904/09 05/09
QuickTime™ and aNone decompressor
are needed to see this picture.
5 Tips to Sell More
QuickTime™ and aNone decompressor
are needed to see this picture. 8
1. Make your product easy to buy
Turn-offs– Long-term contracts– Up-front payments– Complexity
Turn-ons– Free trials– Easy-to-use, self-service options– Insight
QuickTime™ and aNone decompressor
are needed to see this picture. 9
2. Price it rightHours Worked by Week
Initial Pricing ~30% of Hourly Total Charge
5/05 – Fees reduced to 23%
11/06 – Fees reduced to 10%
QuickTime™ and aNone decompressor
are needed to see this picture. 10
3. Leverage your extended community
Who? – Users, partners, investors, team members,
other influencers
How? – Referral and affiliate programs– Social applications and social marketing– Platform extensions (APIs)
Create positive experiences that people want to talk about and give them tools to do it
Create positive experiences that people want to talk about and give them tools to do it
QuickTime™ and aNone decompressor
are needed to see this picture. 11
4. Harvest demand before generating it
111111
Events
SEM
Viral Features & SMM
SEO
Referral Program
PR
Affiliate Program
Radio
Direct Sales
Higher
Lower
Intent
Products and services are increasingly bought and not sold
Lower
Higher
CPA
QuickTime™ and aNone decompressor
are needed to see this picture. 12
5. Take care of existing customers
0%
10%
20%
30%
40%
50%
60%
70%
80%
NPS
1/1/107/1/091/1/097/1/081/1/087/1/071/1/07
# Promoters - # Detractors
# ResponsesNPS =
Score9 or 10 = Promoter7 or 8 = Passive0 to 6 = Detractor
Where…
“It's like winning the lottery on your birthday.”
“It sure would be helpful to have 24-7 chat service when I have problems.”
“I wish you offered Paypal. I almost didn't try your service. But
otherwise I like the experience..”
QuickTime™ and aNone decompressor
are needed to see this picture. 13
Thank you!
Questions?
More questions? [email protected]
Want to try oDesk? Visit www.odesk.com