🧖♂️How are the best teams using Hifive?
1. Build an advisory board
Early in our journey, we decided to allocate 3% of our company to build an advisory network of connectors. These individuals possess vast networks and can facilitate warm introductions to our target accounts.
Similarly, the CEO at DocuSign, Keith Krach, decided early on to create an advisory board of over 200 people, including the COO of Deutsche Bank, the President of Purdue University, the Co-Founder of Yahoo, and the former CEO of McDonald’s Don Thompson, etc.
However, one of our biggest learnings over the last 3 years is that advisory boards built off equity is excellent. However, it's not enough. If you want consistent and scalable growth out of this channel, many of your Connectors need to be paid to help.
2. Pay your Connectors
Most startups don't realize how hard it is to drive top-of-funnel leads for their business and overestimate the power of advisory shares. At Hifive, we've built software for you (and ourselves) that enables us to pull all of our Connectors (paid and unpaid) into one place, collaborate on intros, and distribute monthly payments to Connectors.
We've created a Directory of Connectors that anyone can partner with.
Is it just about getting intros? Nope!
We hire Premium Connectors to:
Nudge deals that are currently stuck
Create sponsored LinkedIn / Twitter posts
Mention their product/service in their podcast or newsletter
3. Cost Efficiency and CAC Reduction
One of the most compelling outcomes of our Connector strategy is its cost-effectiveness. By relying on warm introductions and leveraging our networks, we've managed to keep the cost per quality meeting between $300-$500. This efficiency significantly lowers our overall Customer Acquisition Cost (CAC), a crucial metric for any growth-focused company.
Picking the suitable Connectors is an essential task. Here's how the best companies are doing that.
Picking the suitable Connectors is an essential task. Here's how the best companies are doing that. Step 1: Invite Investors
Identify Potentially Helpful Investors:
Focus on investors with a track record of being active in the startup community and relevant connections.
Invite Them to Hifive:
Extend invitations to your investors to join Hifive, emphasizing the opportunity to connect with other Connectors and participate in valuable introductions, nudges, and brand influence.
Highlight the benefits of being part of a network where collaboration and support among investors and entrepreneurs are encouraged.
Step 2: Build an Advisory Board
Allocate Equity for Advisory Shares:
Decide on the percentage of equity (3%) you're willing to allocate for building an advisory board.
While advisory shares are a start, they may not be sufficient to incentivize strong engagement.
Offer a base amount of advisory shares and incentivize more advisory shares based on performance.
i.e., 5,000 shares base + 250 shares for each introduction made
Manage all of this in a spreadsheet and create a monthly or quarterly reminder to make updates in Carta
Categorize Advisors:
Classify advisors into three categories, A, B, and C, based on their potential impact and level of involvement.
Assign higher equity to A advisors who demonstrate significant value and commitment and less to B and C advisors accordingly.
How we evaluate Potential Advisors:
Assess potential advisors based on several criteria:
LinkedIn Network: Examine if their network aligns with your target buyer demographics and includes individuals from companies relevant to your ideal customer profile (ICP).
LinkedIn Activity: Determine if they are active on LinkedIn and if their posts generate high engagement, indicating influence and reach.
Alignment with Mission: Engage in conversations to gauge their interest in your mission and their enthusiasm for what you're building.
Invite Selected Advisors to Join Hifive Alliance:
Extend invitations to selected advisors to join your Hifive alliance, emphasizing the opportunity to contribute to your mission and collaborate with other connectors.
Step 3: Partner with Hifive's Network of Premium Connectors
Explore Hifive's Network:
Access Hifive's Directory of Connectors to explore their network of premium connectors.
Filter the directory based on your target buyer demographics to identify connectors aligned with your business goals.
Engage with Premium Connectors:
Reach out to selected premium connectors to introduce your business and discuss potential collaboration opportunities.
Highlight how your offering aligns with their expertise and the value they can bring to startups like yours.
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