MRR
We have
a great
product! First-to-
market
Word of
Mouth
Funnels
???
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MRR
We have
a great
product! First-to-
market
Word of
Mouth
Funnels
???
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We have
a great
product!
Agreed! Why do some great
products succeed and
others don't?
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MRR
Great!
How does MRR grow?
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Three misleading frameworks
1. Funnels
2. First-to-market & first-to-scale
3. Network effects, WOM, and
defensibility are random
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Challenges
with funnels
Funnels create
strategic silos
Funnels create
functional silos
Funnels operate in one
direction: top to bottom
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Product Acquisition Monetization
Funnels create
strategic silos
Funnels create
functional silos
Funnels operate in one
direction: top to bottom
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Product Marketing Advocacy
Funnels create
strategic silos
Funnels create
functional silos
Funnels operate in one
direction: top to bottom
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Funnels create
strategic silos
Funnels create
functional silos
Funnels operate in one
direction: top to bottom
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We want sustainable,
compounding growth.
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How do software products grow?
Growth Loops
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4 Type of Value Loops Provide
New User
Acquisition
Engagement
Retention
Defensibility
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Why loops don't last forever
Value
Promises
Change
Max
Scope
Exists
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Value Promise
The reason why people choose to participate
in each step of the growth loop.
Max Scope
The point at which growth loop returns
begin to diminish.
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Value Promise
The reason why people choose to participate
in each step of the growth loop.
Personal Financial Social
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Value Promise:
Personal
People want to save time
with social media
Value Promise:
???
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Max Scope
The point at which growth loop returns
begin to diminish.