Dropbox’s 35 Million Dollar Investment

Dropbox Logo

Even companies like Dropbox started somewhere. It wasn’t too long ago that they were struggling to get new clients for their new cloud service start up.

In the beginning, Dropbox’s cost per acquisition was over $300 when their products and services were only selling for $100. It’s understandable that some companies and products need to operate at a loss to gain a client base, but Dropbox, in its infancy stages, didn’t have the resources to continue that strategy.

At some point, Dropbox decided to do something that was very new at the time. They put an explainer video on their website. Honestly speaking, there was literally nothing else on their webpage, just a video and a contact form. Take a look at what their video here https://www.youtube.com/watch?v=OFb0NaeRmdg.

The statistics are in. Dropbox’s simple landing page, having just an explainer video and a contact form, was one of the key factors that drove them to 100 million subscribers. The return of investment on their video is an enormous 35 Million Dollars.

Dropbox understood that modern online marketing techniques would be key to their success. Even taking a look at the research, studies show that a one minute video has the value of 1.8 million words. Pair with this with the fact that one third of all online activity is spent watching videos,

When looking at viral video success stories, Dropbox is not a stand alone case. Simply take a look at Dollar Shave Club, https://www.youtube.com/watch?v=ZUG9qYTJMsI.

The question is, where is your video?

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