I’ve seen this a few times and definitely want to bookmark it here on my blog so I can find it later ….
His three questions are simple and good:
- Is it (growth) working?
- Will it sustain?
- Will it improve?
And I like his simple two loops:

The way he describes case 2 applies to everything I’ve been thinking about:

And the “2nd try case” is easy to neglect:

And the “What value is being created on each visit?” Q is a great one:

This is all laid out in a Twitter format from this point onward:
Like many investors he doesn’t like marketing spend as a means to acquire new users:
4/ When it comes to new user acquisition sources, I always ask what % is driven by paid marketing. Sometimes folks will try to hide the number, or justify that it’s high for now, but will get better. It won’t get better.
5/ Paid marketing is a bad, bad addiction. I’ve written about this here: https://twitter.com/andrewchen/status/993560378129960960 …. It’s shocking how often people cite numbers higher than 50% or even 75% and think it’s OK and the unit economics will sustain. It won’t!
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