Claiming that ``we should not concentrate on revenue'' in order to make money in the community in software development



Banner advertisements and article advertisements are also useful for increasing the number of users when developing web services and software, but another method is to ``create a strong community''. Patrick, CEO of Orbit , which supports community building for those who think 'I don't know how to evaluate and operate the community' because it is difficult to see how much the community affects revenue.・ Mr. Woods explains the details.

Orbit Blog — What's Your Community's NRG?
https://orbit.love/blog/whats-your-communitys-nrg



The marketing measure ``DevRel (Developer Relations)'' that creates connections between external developers and their own products has been adopted by many IT companies in recent years, and Apple's WWDC and Google's Google I / O are examples of DevRel. You can DevRel has a problem that it is difficult to see how much its activities affect revenue, but Mr. Woods uses the natural growth rate (NRG) to see how much impact the community has on business growth. said to be able to understand



NRG is 'the growth rate of the product itself before spending on sales and marketing', and it is calculated by the following formula.

NRG = 100 x annual growth rate x organic signup rate x product annual recurring revenue (ARR) rate

NRG measures traffic growth from events that occur 'for free', such as existing users introducing the product to others, or new users coming from upgrade notifications. Since the traffic from these events is an area where the community has a large influence, NRG is considered to be excellent for measuring the influence of the community.

Woods believes that once a community of devoted fans is formed, it will continue to thrive whether or not the product's creator actively participates. ``Airtable'', which can create a database on the web with easy operation and can be operated visually, is cited as an example, Airtable's forum has hundreds of posts every week, and many of the forum participants are Airtable staff. Other community members. For this reason, it is expected that the community will continue to operate even if the Airtable team stops replying to messages.

I tried using 'Airtable' which can create a database on the web with easy operation and can also operate visually - GIGAZINE



Specifically, even if the Airtable team stops responding, search engines continue to index meaningful content and discussions between users. Woods said that the forum content will lead users to the product, and once the product is used, interest in paid features will naturally increase. This will increase NRG.


Mr. Woods says that the important thing for forming such a community is the attraction of keeping members in the community and attracting other members, paraphrasing this as 'gravity'. Gravity is based on 'reach' and 'love', so when gravity increases, reach increases product awareness, and love creates content that develops into meaningful discussions, leading to a revitalized community. matter. And as community influence and activity increase, so does the cycle of increasing gravity.

It should be noted that the goal of development is to 'increase revenue', but if the community team tries to directly influence revenue, there is a risk that it will become a sales-oriented strategy and users will leave. . As members move away from the community, the gravity gets smaller as well.

Revenue for many communities is a naturally occurring secondary effect of the magnitude of gravity. Using ice cream as an example, Woods said, 'The bigger the ice cream on the cone, the more liquid drips into the cone.' He explained that the focus will lead to more organic user registrations and more revenue.

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