Traffic Source Investment
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A strategy of identifying and investing in promising startups by monitoring incoming traffic sources to your platform, even when traffic volumes are small. This approach was demonstrated through Scott Belsky's successful early investments in Pinterest and Uber (via StumbleUpon).
Key Points:
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Monitor Traffic Sources:
- Track where your website traffic is coming from
- Pay attention to new, unfamiliar sources
- Look for consistent patterns, even if volume is small (100 visitors/day)
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Early Investment Opportunities:
- Reach out to founders of sites sending traffic
- Investigate potential investment opportunities
- Consider small investments at early valuations
- Example: Pinterest at $3M valuation
- Example: StumbleUpon leading to Uber investment
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Success Metrics:
- Scott Belsky invested $15,000 in Pinterest
- Made approximately $100M from that investment
- Similar returns from Uber investment through StumbleUpon connection
- Both opportunities came from monitoring small traffic sources
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Key Principle:
- Small traffic sources can signal early-stage opportunities
- Traffic patterns can reveal promising startups before they become widely known
- Building relationships with founders through traffic connections can lead to investment opportunities
Sam Parr
Host of MFM and fitness influencer
Sam Parr is a serial entrepreneur and business media pioneer.
In 2016, he founded The Hustle, a business news media company that started in his kitchen with just $12 and grew to eight figures in revenue.
Sam led the charge in making newsletters popular when few believed in their potential.
After four successful years, he sold The Hustle to HubSpot, a publicly traded company. Now operating as HubSpot Media, The Hustle reaches 3 million readers daily, employs a team of nearly 100, and has been the launchpad for dozens of its staff to found their own media companies and newsletters.
Sam remains the host of the popular business podcast, My First Million, and continues to start and sell companies. He also co-founded Hampton, a highly vetted community for entrepreneurs, founders, and CEOs, and teaches people to write better through his platform, Copy That.