The Evolution of Startup Metrics: From Users to Profits

Startup Growth: The Early Days

Once upon a time, in the startup world, having a growing user base was seen as the ultimate metric of success for startup growth. "Build it, and they will come," we told ourselves, focusing on user acquisition with the faith that monetization strategies would naturally follow. This model, particularly prevalent in B2C startups, was driven by the belief that if you could attract users, figuring out how to make money from them could be deferred.

Suggesting early concerns about monetization, such as charging customers or incorporating advertising, was often met with disdain.

You were either not playing "the game" correctly or simply didn't grasp the intricacies of startup growth "The Silicon Valley way".

Discovering Revenue

However, this game was sustainable only because investors were willing to fuel startup growth without immediate returns. Then, a significant shift happened: we discovered the allure of revenue.

Suddenly, generating income became a new beacon for success in the startup ecosystem. Yet, the obsession remained with top-line growth. Revenue was king, and profitability was a concept relegated to those unfamiliar with the fast-paced world of startup growth.

Why would you sacrifice growth for profitability when there were investors ready to fuel your growth engine?

For a long time, anyone daring to mention profit in startup circles might as well have been speaking a foreign language or coming from another planet (planet Corporate?!).

(...)

Continue reading in the It's the Strategy website: The Evolution of Startup Metrics: From Users to Profits

A Post turned into a Publication

"It's the strategy, stupid!" started as a rant, an idea. Later, it evolved into an article. But soon, "the idea" wanted more and turned into the name of this publication.

Now, I have decided that it deserves its own home, even if I will still use LinkedIn to distribute new articles. Visit Now

Or jump right into the articles:

• It's the Strategy, stupid!
• To lead, you need to lag - on metrics