Last week, TechCrunch reported that Dropbox had attracted two million users, just four months after it reached the one million active user mark. It got me thinking about why some online service become so popular, while the vast majority struggle to get any kind of traction no matter how hard they try.
Now, if anyone had the definitive answer, they’d be sitting on a pile of gold. But there are some fundamental things that wildly popular online service have in common.
1. They meet a basic need that quickly resonates with users. For Dropbox, it’s a simple proposition: the ability to synch files across multiple computers. For people who work in multiple places or have multiple computers, Dropbox is a service that quickly strikes a chord.
2. They’re user-friendly and easy to use. These kind of services do what they need to do without unnecessary frills or feature creep. There’s nothing that kills a good idea than developers who believe that more (features) is better. This only confuses users by giving them too many options. At the end of the day, KISS (Keep It Simple Stupid) is a much better approach.
3. The barriers to entry are low because the basic service is free, while premium services are available for people who want more features, data, etc. For all the talk about freemium, the most successful online services seem to thrive because they make it easy for users to join the fray.
4. They have a user-friendly, intuitive interfaces that are accessible. Services that feature this kind of interface make it easy to people to quickly climb on board. Once people start using the service, they tend not to leave. In other words, the “bounce rate” is pretty low.
5. They tell great stories. There’s so much competition that success can often hinge on how well their stories are crafted and delivered. The ability to tell a good story can make a huge difference compared with other services that may be as good but don’t tell their stories as well.
Any other things that help make online services successful?
12 Comments
Here's my list of elements in making a great online service: http://www.startupcfo.ca/2009/06/building-great-c...
I use SugarSync.. my understanding is that it offers the same service for less and works just as nicely. Am i missing something on why i should use Dropbox?
I think we'll see more and more of this. As users become more comfortable with the cloud, the last big barrier will be removed… trust.
The technology for things like DropBox (HUGE fan BTW) have been around for a while and now the ubiquity of broadband makes it reasonable to sync even large files through the cloud. Google Voice provides phone service… Gmail, Yahoo and others provide email… Google Apps, Zoho, and soon Microsoft will deliver office tools to the cloud… games have been there for a while. What's left? The user.
And I agree, drop dead easy to join is an absolute requirement. Make it "Apple Simple" as they say… just without the Apple cost.
Awesome topic, thanks for the post!
@jtrigsby
they also offer more free space for referrals. This leads to viral advertising by users. I have already upped my account to 3gb by recommending it to friends.
I think that in this case a great name also contributes.
It's very easy to explain what you could do with a DropBox, whereas who knows what something like Wuala or Zecter does. (Did a quick Google search to look for DropBox competitors and those names came up.)
Dropbox reminds me of Google. They have focused relentlessly on a very important problem that most people overlooked(file storage). They seem to be focused on building the world's perfect file storage, just as Google aims to build the world's perfect search engine. I am amazed by how well Dropbox works. It is a daunting technical challenge to integrate with multiple OS' seamlessly and quickly. But they pulled it off with flying colors.
Points 2, 3, and 4 are basically the same, and can be summarized as: it's insanely easy to use. I set up Dropbox in about 20 seconds, and it did exactly what it said it would. Compared to every other synchronization tool I've ever used, Dropbox wins not by meters, but by miles.
Dropbox also has a bit of secret sauce. They have some technology that can pick up which bits changed in a file and only sync those (which makes their service way faster than others)
About a year ago I went on a systematic search for the best online file storage services. I tried all the most recommended ones and Dropbox came up head and shoulders above the rest, for the following reasons:
1. It's free account is extremely generous – 2GB and no individual file size cap.
2. The automatic-syncing with folders on my computer makes sharing and backing-up extremely convenient.
So from my perspective Dropbox has grown so much because it offers a much better service than its competitors.
Interesting to hear about the 'secret sauce'; I didn't know that.
I'd wager that a major trajectory for growth has been the sharing features, ie. just by using it you end up advertising it….If you start using it at work you want everyone else to use it too because then you can easily share files from anywhere. The fact that it is utterly awesome also makes it easy for users to evangelize.
I believe that recent reports state that their "active" user count is less than 1 million of the 2 million subscribers. That's an over 50% bounce rate, so you can't really say that "most" tend to sign-up and stay, because actually, "most" sign-up and leave.
Lastly, it's easy to say KISS, but in "reality", particularly niche industries, features are still king and some of the MOST successful apps actually have enormous amounts of features. ONLY the handful of lottery winning apps with minimal features are successful.
Thoughts from Sydney Australia
1- Find a problem that causes real pain (be careful of just creating something "cool")
2- Execute well on the solution.
3- Create a branding with a look and feel that talks to your target market.
4- Try stay away from "advertising" business models unless you have a long runway via solid VC funding.
5-Create as many avenues for feedback.
6-Be patient but push forward hard., true overnight successes are few.