How the Web site increases traffic flow is a marathon rather than a sprint

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Editor's note: This author Bryan Goldberg is the founder of the Sports News aggregation website Bleacher.

For some reason, today's technology industry, as well as young, impatient entrepreneurs, want to get rich overnight, and they all want their products to spread as quickly as the virus does. Everyone wants to be successful quickly, ignoring the effort needed to succeed.

Sometimes, some companies can do a quick success, such as Instagram and YouTube. Almost every two years, there is an entrepreneur who becomes a billionaire overnight. But, in most cases, the growth of your product is a slow process.

When I talk to VC, they often ask me this question: "When does your business grow fast?" And my answer is: "There has never been a rapid growth." ”

We are a media site, and over the past four years we have had a composite annual growth rate of 105%, which means that our flow per year is about a day or so higher than the previous year. Our monthly compound growth rate is 6%, and of course not slow, but it's hard to call it "viral growth".

Some readers will say, well, your business is a media/content site. For social networks, the criteria for success are completely different. So what does Tumblr's growth chart look like?

The Tumblr growth chart is almost exactly the same as ours.

Tumblr is the top 20 site, their composite annual growth rate of 130%, the monthly composite growth rate of 7%. It can be seen that such a great success of the site, their traffic growth is also steadily improving, rather than overnight ushered in a large number of new users.

Behind this steadily increasing flow is the company's valuation, which has risen from $20 million trillion to $1 billion trillion.

Now let's look at another example.

A year ago, Viddy received nearly 370 million dollars in large sums of money, and their traffic growth figures showed an incredible rise in their traffic in April 2012:

It's hard to believe that video apps Viddy so much traffic in such a short amount of time. As a result, their valuations must have risen.

But that is not the case.

Viddy finally picked the wrong strategy and began to join the "viral growth" camp. They entered the footsteps of MySpace and were buried in the entrepreneurial desert.

A real entrepreneur should be ready for a marathon, don't always think about sprinting, and you won't want to be the next viddy. Tumblr is the example you should study, steady operation, gradually improve the flow.

When your company appears to be overvalued and the bubble finally bursts, VCs will exercise their liquidation priorities and take away 1.1 of the assets that were once at your disposal. Then you will find how lonely and helpless you are.

(via PandoDaily)