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A great product is always the foundation but a clear distribution strategy becomes essential to cut through the noise. Your business has a high viral co-efficient (or perhaps even a network effect) that lets you amass users cheaply without worrying too much about the monetization per user or spending money on paid acquisition.
Where Airbnb recognized the value in another platform, Dropbox doubled down on the strength of its product as a distribution channel. Neither would have achieved virality had customers not received something tangible for their efforts. The result? An increase in listings from 50,000 to 500,000.
Some notable metrics are revenue growth rates, free cashflow, leverage ratios, historical financing amounts, returns on marketing spend, customer acquisition costs, lifetime value of customers, customer churnrates, and team social scores. 9) Accelerate portfolio company value. 11) Exit .
I like to understand for these models how many sales people are quota carrying, what is the distribution of quota attainment, and what is the profile of an ideal sales person Inbound model (e.g., Here are a few typical models and some of the points I would find interesting to highlight: Enterprise sales (e.g.,
If you're working on the Sticky Engine of Growth , you're focused on very different metrics from those that you care about in the Viral Engine of Growth. Here's what they have to say about churnrates in SaaS businesses: The best SaaS sites or applications usually have churn ranging from 1.5% to 3% a month.
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