Top 5 Startup Tips from Jay-Z

Here at RJMetrics, we try to learn everything we can from the works of accomplished business leaders.  While guys like Warren Buffet usually top that list, there is another visionary we thought was worth mentioning: rapper Jay-Z.  And since we know everyone loves business lessons from rap stars, we thought we’d share some of his insights here.

While he’s never done a song about business intelligence or cohort analysis, Jay-Z’s discography is a rich library of business advice that has been topping the charts over a decade.   Don’t believe me?  Here are the top five lyrical excerpts that have helped shape our business philosophy.

5. Adapt to Serve Your Market

“I dumbed down for my audience to double my dollars
They criticized me for it yet they all yell ‘HOLLA!’”

Song: Moment of Clarity
Album: The Black Album
Year: 2003

Here, Jay-Z admits that he has compromised his artistic vision to make his music more commercially accessible.  Mainstream artists are often accused of “selling out” for doing exactly this, but here Jay-Z openly admits to the practice and justifies it with a simple fact: it made him rich.

As a business owner, your vision may not always appeal to the largest possible market.  The key is to keep an open mind about new opportunities and be ready to adjust your plans to seize them.  Like Jay-Z, many entrepreneurs have made their millions by constantly refining their vision and adjusting their strategy to reach the largest possible market.

4. Be a Renegade

“No lie, just know I chose my own fate
I drove by the fork in the road and went straight”

Song: Renegade
Album: The Blueprint
Year: 2001

In 2001, Jay-Z and Eminem were young stars, each several albums away from the iconic statuses they hold today.  Renegade, their rare collaboration from that year, casts the two as ”Renegades” who risk becoming outcasts as they attempt to change the face of hip hop.  Today, we know that these renegades succeeded in their mission.

This track is a lesson in innovation and the rewards that are possible if you take the right risks.  While it’s often safer and easier to use your talents to feed the existing machine, there is far more opportunity in disrupting it.

3. Stay in Food and Beverage

“Shoulda stayed in food and beverage
Too much flossing
Too much Sam Rothstein”

Song: Lost One
Album: Kingdom Come
Year: 2006

Here, Jay draws a powerful business lesson from the Scorsese classic Casino. In the film, Robert De Niro plays Sam “Ace” Rothstein, a handicapper who is chosen by the mob to run a new casino in 1970s Las Vegas. Due to his criminal record, Rothstein is forced to runs things under lowly title of “Food and Beverage Director.” When he begins to pursue a more public image in the interest of personal fame, we see his downfall as it parallels the downfall of mob rule in Vegas.

As Jay’s lyrics suggest, if Ace had stayed heads-down and focused on his original goal of running a profitable enterprise, he might have never fallen. The business lesson is clear: don’t start a company to become famous; start a company to build a company. Keep your eye on the best interests of your business, and don’t let the tempting distraction of personal fame compromise your original goals.

2. Be a Business, Man

“I’m not a businessman
I’m a business, man
Let me handle my business, damn”

Song: Diamonds From Sierra Leone (Remix)
Album: Kanye West’s Late Registration
Year: 2005

With this classic lyric, Jay-Z delivers a valuable lesson for business operators by drawing a distinction between the entrepreneur and the working stiff.  His business’s success has made him something much more than just an average man, and that has enabled him to do far greater things with his life and the lives of those around him.

In the lines that follow, Jay-Z calls out to all of the family members and employees whose livelihoods depend on his continued success and whose lives are better because of what he has become.  Jay-Z reminds us that running your own business will both consume and enrich your life– and that the tradeoff is definitely worth it.

1. Data is King

“Men Lie.
Women Lie.
Numbers Don’t.”

Song: Reminder
Album: The Blueprint 3
Year: 2009

As one the best-selling recording artists of all time, Jay-Z has a pretty good response to anyone who challenges his dominance: check the numbers. This same comeback is also a foolproof way for him to dismiss unaccomplished rivals.

Similarly, in business, there is nothing more important than the numbers behind a company. When the hype dies down, the companies with the strongest fundamentals are the fiercest competitors. And the companies with the strongest understanding of their data are the best-equipped to steer those numbers in the right direction.

If you think there is value in your data that might be going uncaptured, it’s probably time to learn more about RJMetrics.

RJMetrics is Hiring: User Experience and Interface Engineer

RJMetricsC76a-A12aT03a-Z

We are looking for an exceptional User Experience and Interface Engineer.

RJMetrics is a fast-growing, innovative database analytics and business intelligence software company.  We sell our hosted software to startups and growth-stage ecommerce, social media, and software as a service businesses.  We blow our customers away with powerful analytics, ease of use, and exceptional customer service.   RJMetrics was launched in early 2009, reached profitability in just six months, and has been growing revenue at over 100% per quarter.

We are located 15 minutes outside of Center City Philadelphia in the Rutgers Camden Business Incubator (3 blocks from the PATCO and River Line trains).  We also occasionally make rap videos, guest post on TechCrunch, get on the front page of digg, and win awards.

Responsibilities

  • Improve the usability and design of our AJAX-driven BI dashboards
  • Extend the functionality of our Flash-based data visualizations
  • Work closely with the founders (you will be 1st non-founder technical hire)
  • Visual design oversight of all public-facing company collateral (website, advertisements, white papers, etc)
  • Contribute to the development of internal tools, processes, and policies
  • Occasionally pitch in with whatever needs to get done (blog posts, customer integrations, strategic planning, cabinetmaking, etc)

Requirements

  • Significant experience working with Flash (ActionScript 3), Photoshop/Illustrator, HTML, CSS, and JavaScript (JQuery).  Experience with PHP and MySQL a plus
  • Must have built or contributed to something awesome that we can try out
  • Experience with user-centric design
  • Interest in ecommerce, social networks, and software as a service businesses (our clients)

Nice to haves

  • Startup Experience
  • Data visualization experience
  • Experience working with APIs
  • Understanding of business metrics/business intelligence
  • Understanding of statistics and  database theory  (we are total nerds)

What you’ll get

  • Be THE expert on interface and design for our company
  • Contribute to important software that end-users love
  • Make a major impact on an early stage company
  • Competitive salary and stock options

This is a full time position located on site.

Please apply here.

RJMetrics Selected by AlwaysOn as an OnDC 100 Top Winner

ondc100

We’re proud to have been named to the OnDC 100, put together by AlwaysOn Magazine. The list highlights “100 private companies contributing to the renewed and continued prosperity of our country”. See the full list at AlwaysOn’s website.

Tabular Data Views in RJMetrics

Today, we expanded our data display options to include raw tabular data. Simply choose “Table” from the list of charting options and you’ll be able to view the raw data behind any chart in tabular form right in your RJMetrics dashboard:

All Existing Charts Can be Viewed As Tables of Data

All existing charts can be viewed as tables of data

The tabular output provides an easy way to view the raw data powering your charts (and you can still always export to CSV or Excel).

View the raw data behind any chart right in your dashboard

View the raw data behind any chart right in your dashboard

Like all other charts, tabular data sets can be enlarged by clicking the “Enlarge” button beneath the chart. This will provide an expanded view, making large data set exploration easier than ever with RJMetrics.

Twitter Analytics in RJMetrics

twitter_logo

Most online businesses are now using the notorious microblogging service Twitter.  While this new marketing channel creates opportunity for these companies, it also represents a new data source that is disconnected from their core business data.  That is, until now.

Auto-Generated Twitter Analytics Dashboard

Auto-Generated Twitter Analytics Dashboard

On the heels of our recent Google Analytics integration, RJMetrics has integrated with the Twitter API to provide Twitter account statistics for an unlimited number of accounts, including:

  • Tweets
  • Mentions
  • Retweets
  • Time between tweets
  • New followers
  • Lost followers

These metrics can then be combined to derive more meaningful analyses.  How does our rate of follower acquisition/churn change with our tweet frequency?  What is the average number of retweets per new tweet sent?  Composite charts can be used to conduct any complex calculation you desire.

More importantly, however, this data can appear side-by-side (or in the same chart) as your existing business data.  Are sales growing in line with our follower count?  How is our tweet frequency tied to the Page Views reported by Google Analytics? 

Whether you’re interested in complex analysis or simply keeping an eye on your Twitter stats from one centralized location, RJMetrics is the answer.

Add a Twitter Account in Seconds

Add a Twitter Account in Seconds

To add a Twitter account, simply have your company’s administrator visit the “Data Sources” section of the Settings Page and add the new connection.  You will have the option of authorizing a Twitter account with just a few clicks and RJMetrics will take care of the rest. You can add as many accounts as you would like!

Twitter Data: An Investor’s Perspective

[This article was also featured as a guest post on TechCrunch on October 5th, 2009.]

A few weeks ago, my former employer led a $100 million investment into Twitter and I must admit that I was quite jealous of my former colleagues.  Chances are they got the opportunity to do some very cool analytics on Twitter’s data.

Rather than wonder about what I missed, I decided to figure out what I could from the outside looking in.  Using some statistical trickery, the Twitter API, and my RJMetrics dashboard, I uncovered a ton of astonishing new information about Twitter.  Here are some highlights:

  • Twitter’s user growth is no longer accelerating.  The rate of new user acquisition has plateaued at around 8 million per month.
  • Over 14% of users don’t have a single follower, and over 75% of users have 10 or fewer followers.
  • 38% of users have never sent a single tweet, and over 75% of users have sent fewer than 10 tweets.
  • 1 in 4 registered users tweets in any given month.
  • Once a user has tweeted once, there is a 65% chance that they will tweet again.  After that second tweet, however, the chance of a third tweet goes up to 81%.
  • If someone is still tweeting in their second week as a user, it is extremely likely that they will remain on Twitter as a long-term user.
  • Users who joined in more recent months are less likely to stop using the service and more likely to tweet more often than users from the past.

Read on for some detailed charts a deeper dive into the data.

Read More »

RJMetrics Guest Post on TechCrunch

If you’re hungry for some Twitter data analysis, you should check out my guest post on TechCrunch this morning.

The post will be published here tomorrow morning, but check out TechCrunch to get an advance look.  Enjoy!

What Happened In Vegas

What does every red-blooded American man do when they get to Las Vegas?  You guessed it: tour Zappos Headquarters.

This past Thursday we took some time away from our other Vegas activities and got a dose of Zapponian culture.  As luck would have it, the other folks in our group were from Elastic Path, the ecommerce software and consulting firm behind getelastic.com.  No surprise, we found a lot to talk about.

It almost seems clichéd to say this, but Zappos is fucking awesome.  A short list of the reasons why:

  • They picked us up in a free shuttle from our hotel and took us to their HQ
  • They gave us a free 90 minute tour with a great guide
  • They gave us free ice cream
  • They gave us free books (not just their culture book, other good ones too)
  • They gave us sharpies to draw the RJMetrics logo on one of their walls
  • They beat me in a hula-hoop competition (no small feat)
  • They put a mullet wig on Bob (that one is actually not impressive)

There’s one more thing they did that really blew me away.  A few weeks ago, I called the general support number in order to find out how to book the tour.  A woman named Michelle told me how to get in touch with the right department.  A day or so after going on the tour, I noticed this message came through the contact form on our website:

MichelleZappos

Michelle didn’t have my contact info.  So, she watched for my name on the list of tours, found our website, and filled out the contact form to see if we had a good time.  Totally, totally awesome.

Advanced Google Analytics with RJMetrics

Google Analytics Logo

Starting today, RJMetrics clients can access their Google Analytics data via the RJMetrics web-based dashboard.  This powerful system helps reinforce our core goal of creating a robust, affordable business intelligence solution for web-based businesses of all sizes.

Below are some of the key features associated with this new enhancement.

Easy and Secure Setup

RJMetrics uses the highly secure and widely accepted OAuth standard for authenticating your Google Analytics account.  We never require your Google password and all information is sent to and from Google using SSL.

Advanced Data Exploration

Along with basic Google Analytics metrics such as visitors and pageviews, the RJMetrics Chart Wizard allows you to perform advanced segmentations across all metrics and dimensions available in Google Analytics.  This currently includes a universe of 51 metrics and 57 dimensions. 

Dozens of Metrics Are Available

Dozens of Metrics Are Available

Depending on the Google Analytics features your company uses, this can include data on Advertising Campaigns, E-Commerce Tracking, Internal Search, and more.

Automatic Chart and Dashboard Creation

When you first configure Google Analytics, our system will allow you to automatically add pre-populated Google Analytics dashboards to all of your users’ accounts.  When applicable, these dashboards include information on web traffic, advertising campaigns, and goal conversions.

Automatic Chart and Dashboard Creation

Automatic Chart and Dashboard Creation

These few clicks allow you to generate fully-populated dashboards that are rich with data from Google Analytics:

Click to Enlarge

Click to Enlarge

 

Composite Chart Compatibility

All charts based on Google Analytics data are fully compatible with our Composite Chart builder, allowing users to build charts that combine traffic information with sales and behavioral data from their backend database.  This makes metrics such as “revenue per unique visitor” or “conversion to first time purchasers” attainable with just a few clicks.

How to Configure

To configure Google Analytics, your RJMetrics account must be an administrator for your business.  Simply log into your RJMetrics Dashboard and choose “Data Sources” from the Settings Page. 

Adding a New Data Source

Adding a New Data Source

From there, you will be able to add a new Google Analytics connection and will be redirected to a Google webpage where you can grant RJMetrics data access.  You’ll then be redirected to RJMetrics, where you can choose which Analytics accounts to add and which dashboards to generate.

What are the Odds? Debunking the 09/09/09 Babies

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Last week, news sites across the web were flooded with stories about “lucky babies” who were born at 9:09AM on 9/9/09.  Even more amazing was this story, which told of a baby born at that very minute with a birthweight of 9 pounds, 9 ounces.

The story sounded familiar, so I poked around and found this story from last summer.  It tells of two babies, each born at 8:08AM on 8/8/08 and weighing 8 pounds, 8 ounces.

This kind of news story always makes me suspicious.  It seems like the chance of this happening would be astronomical, especially two years in a row.  Rather than ponder the odds,  I decided to calculate them.

 

The 9/9/09 Baby

The two independent characteristics of this phenomenon are its birthtime and its weight.  Let’s explore each individually.

Probability of Being Born at 9:09AM on 9/9/2009 

The easy (and highly flawed) way to do this would be to simply divide one by the number of minutes in a year to get a crude probability of being born on any given minute.  However, the individual components of a birth time (month, day, hour, minute) are not uniform.  Indeed, each is governed by its own probability distribution, which we explore below and use to calculate a more accurate probability.

Month: The CDC’s National Vital Statistics System contained this recent report, which breaks out US births by month of the year.  It shows the distribution below with 8.8% of births taking place in September:

months 

Day: While the individual days of a month aren’t heavily studied, I did find an interesting probaiblity distribution by day of the week in the same report:

DayOfWeek

9/9/09 was a Wednesday, which typically contains 16.1% of the births in a given week.  September contains 30 days, or 4.3 weeks.  If we assume an equal probability that the baby will be born in any week of the month, the probability of a birth on a specific Wednesday of a 30-day month like September is 3.7%.

Time: Births are surprisingly unevenly distributed across the hours of the day, as shown in this report, which reveals the probability distribution below:

hour

The probability of a birth during the 9AM hour is reflected here as 3.5%, and if we assume a uniform distribution across the minutes of an hour (i.e. it’s equally likely to be born at any minute in a given hour), this places the probability of being born at 9:09AM on any given day at 0.06%.

Conclusion: Based on these numbers, the probability of a baby being born on 9/9/09 at 9:09AM is 0.0002%.  (I should note that this assumes that each of these time attributes is independent of the others.)

If we estimate 4.3 million births this year (in line with recent years), this probability tells us that the expected number of babies born at 9:09 AM on 9/9/2009 is… 9.  OK, I’ll admit it: that’s a little creepy.

But, that number is before we consider that amazing birthweight of 9 pounds, 9 ounces. 

 

Probability of a 9 Pound, 9 Ounce Birthweight

Various sources, including this report from the International Journal of Epidemiology, confirm that birthweights conform to a Gaussian distribution, as shown below:

Distribution of Birth Weights

Distribution of Birth Weights

Another study provided the characteristics of this distribution: a mean birthweight of 3,369 grams and a standard deviation 567 of grams.  Among other things, this tells us that the 9 pound, 9 ounce (4,337 gram) baby was, well, a chubby one (to the tune of 1.7 standard deviations above the mean).

The metric weights that a doctor could convert to ounces to get the 9 pound, 9 ounce measurement were 4,323 to 4,349 grams, or 1.68 to 1.73 standard deviations from the mean. 

Using a standard z-table, we easily determined that the probability of a 9 pound, 9 ounce birthweight is quite low: 0.43%.

 

End Result: Probability of a 9/9/09 9:09 birth weighing 9 Pounds, 9 Ounces

It’s fair to assume that a baby’s birthweight is independent of its birthdate, so we can simply multiply the probabilities from the past two sections to determine the probability that any given 2009 baby was born on 9/9/09 at 9:09AM weighing 9 pounds, 9 ounces: 0.0000008%.

With our estimate of 4.3 million births in 2009, that means the expected number of births meeting those characteristics was 0.035, which implies that there was a 3.5% chance of this baby being born.  Another way of arriving at the same result is to calculate the probability that no babies with these birth statistics would be born and look at what’s left (100%-((100% – 0.0000008%)^4,300,000) = 3.5%).

Regardless of how you slice it, there was a 3.5% (or about 1 in 28) chance of a baby being born on 9/9/09 at 9:09AM weighing 9 pounds, 9 ounces. 

You don’t need a business intelligence dashboard to tell you that this was a long shot.  However, when we factor in the babies from last year, things start to get even more outlandish.

 

The 8/8/08 Babies

Using the same data and the steps explained above, we can easily identify the probability of any given baby born in 2008 having the characteristics below:

Probability of being born on 8/8/08 at 8:08AM: 0.0002%

Probability of being born at 8 pounds, 8 ounces: 10.6%

Overall probability: 0.00002%

Note that the overall probability here is more than twice as high as for the 9/9/09 baby, mainly because 8 pounds, 8 ounces is a significantly more common birthweight. 

Even still, however, with 4.3 million expected 2008 births, the chance of a baby being born in the US on 8/8/08 at 8:08AM weighing 8 pounds, 8 ounces was a mere 10%.  The chance of two such babies being born independently, therefore, was a only 1%.

Again, this is a very low probability but certainly not astronomical.  What starts to get outlandish is when you consider the probability that all three of these babies would be born.  As three independent events, the chance that these three births would take place as they did was approximately 0.04%, or about 1 in 2,500.

 

Conclusions and Complications

Given the large amount of press attention showered upon these babies and their doctors, there appears to exist a disturbing incentive system for the birthing of babies with numerologically noteworthy birth statistics.  (A quick Google News search turned up 290 stories containing the names of the 9/9/09 baby’s parents.)

Given the low likelihood of any such baby being born (and the extremely low likelihood of all three being born independently), two alarming scenarios seem possible (this is, of course, speculation on my part):

  • the involved medical professionals tweaked numbers to yield more noteworthy statistics
  • an unusually large number of deliveries were “scheduled” for these dates to increase the chances of birthing a child with these statistics

Further complicating my math is the popularity of scheduled Cesarian births which allow parents and doctors to choose a specific day and time to begin a delivery process (within a range of options that are equally safe for the mother and child, of course). 

While it may seem perverse, it’s entirely possible that such deliveries are being scheduled to increase the chances of outcomes like these.  This could heavily impact the probability calculations above and might provide an explanation for the otherwise unfathomable outcomes we’ve seen.

What really sealed the deal for me was this story, which talks about an 8/8/08 baby and casually mentions that he has a younger sibling who was born on 4/5/06.  What are the chances that any given set of parents has two children with these two birthdates?  I’ll tell you: it’s 0.0009%.  (Both were born by Cesarian.)

I’ll leave you to draw your own conclusions, but the next time I read a story about a baby with amazing birth statistics, I’ll chalk it up to more than just “good luck.”  Something tells me I’ll have plenty of chances to do so next year– on October 10th.

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