Six business model archetypes

Start @24min

The metrics you are going look at depend on the STAGE you are at and the BUSINESS (ecom, SaaS, marketplace etc)

Acquisition Cost >  visitors > freemium > enroll > User

Disengaged user > signed up and never use it > try to reactivate the disengaged users > churn > former users > Trial is over / not freemium

Engaged > trial > paying customers > capacity limit (upselling) > disengaged / dissatisfied > all things must end = former customers

All the 5 pieces are in their >  AARRR  (Acquisition, Activation, Retention, Revenue, Referral)

Each of these have a Metric...

• Customer Lifetime Value
• Support Data
• Viral Coefficient
• Reactivation Rate
• Paid Conversion

You need to have these for your business model - > If you have business model, this is a spreadsheet turned into a picture.

Eg: like a user story!

We assume we will have 50 customers a day, and off those 10 will become users, of those we'll have 3 will become customers .

If you don't have these - you don't have a business - it's a hobby.

Usually, business are not tracking the proper metrics, so you need to fix that fist.

The process

• Draw your systems diagram (like above)
• Have your business plan with your assumptions
• Measure what reality is
• Figure out what is most unreal (plan/assumption) and fix it
• If you can't fix it you either have to change your business model or give up and go do something else