Tip - Determine your startup’s growth engine

Select Your Company’s Growth Engine
According to Eric Ries, there are three engines of growth startups can use, including viral, sticky, and paid. To select your startup’s primary engine of growth, you must first determine the projected customer lifetime value (CLV) of an average user of your product.

For example, if you create an iOS app that costs the user $1.99 and you have no additional ways to generate revenue from that user the CLV is about $1.40 after Apple takes its cut.

Understanding your CLV helps you determine what growth engine is viable and provides structure to your brainstorming activity around specific tactics you can implement to drive user adoption. Dave Owens, author of Creative People Must Be Stopped, says...

By: William Griggs