Launch & iterate
Phases 4 and 5 of the pipeline: getting the MVP from building the MVP into the hands of its first users, then running weekly cycles until the numbers say you have product–market fit, need to pivot, or should stop. It covers launch sequencing, channels, post templates, activation, the metrics that matter (and the ones that flatter), the weekly loop, prioritization, pricing, pivots and kill criteria. The whole pipeline is on the playbook; fundraising and founder advice live under startup advice.
Phase at a glance
| Item | Phase 4: Launch to first users | Phase 5: Iterate toward product–market fit |
|---|---|---|
| Goal | 20–50 real target users through the core loop, with you watching | a retained core of users, a repeatable channel, and people paying |
| Timebox | 1 week for the soft launch; public launches follow when activation works for strangers | weekly cycles; formal pivot-or-persevere review every 6–8 weeks; kill criteria dated up front |
| Input | live MVP, analytics, error tracking, feedback channel, launch list | first cohorts, feedback log, "not now" list |
| Artifacts | launch posts, onboarding sequence, activation dashboard, feedback log | weekly review notes, cohort table, bet log, PMF survey results, pivot/persevere decisions |
| Main traps | "launching" to nobody, launch fear, big-bang launch day | vanity metrics, the feature treadmill, talking to no one after launch, never deciding |
PHASE 4 (1 week) PHASE 5 (weekly cycles, until exit or kill)
soft launch ─► communities ─► ─ ─ ─► public launches as onboarding works
│ │ │
└─ personally onboard every user ──────┘
▼
talk to users → review metrics → pick one bet → ship → measure
▲ │
└─────────────────────────────────────────────┘
every 6–8 weeks: pivot / persevere / kill reviewEntry criteria
Phase 4 starts with the handoff from building the MVP.
| Must have | Why it blocks launch |
|---|---|
| MVP at a public URL; a new user completes the core loop in under the target time, unaided | otherwise you're running usability tests, not a launch |
| Analytics events arriving; activation query returns numbers | you can't learn from users you can't see |
| Error tracking and uptime alerts reaching you | first users hit bugs; you need to fix them the same day |
| Feedback channel in the product | most users won't email you unprompted |
| Launch list: 20–50 named people with a channel for each | "launching" to nobody is the most common failure |
| Payment working (if charging) | willingness to pay is part of what you're testing |
| Kill criteria written down (see below) | decide the stopping rule before you're emotionally invested in the numbers |
Launch is a process, not an event
A single big launch day wastes your one shot at each audience on a product whose onboarding hasn't met strangers yet. Launch in widening circles; each ring fixes the problems the next ring would have bounced off.
| Ring | Who | When | How | Success looks like |
|---|---|---|---|---|
| 0. Private alpha | 3–5 friendly target users | last week of the build | you sit with them (or screen-share) while they use it | they complete the core loop; you fix what they hit |
| 1. Soft launch | the interview list, prototype testers, waitlist | launch week, days 1–3 | a personal email or message to each, one by one | most reply; a good share activate; some come back unprompted |
| 2. Communities | niche communities where the target users already are | launch week, days 4–7 onward | a helpful, honest post following each community's rules | sign-ups from strangers who activate without your help |
| 3. Public launch | general tech audiences (Show HN, Product Hunt), newsletters, press | weeks or months later, once strangers activate unaided | posts timed so you can answer comments all day | a spike and some of that cohort retained a month later |
| 4. Repeatable channel | whichever channel produced retained users | ongoing | double down on one channel | predictable sign-ups per week at an acceptable cost |
LAUNCH WEEK (Phase 4)
Mon Final pre-launch checks. Send 10 personal emails (ring 1).
Onboard replies personally (call or screen-share).
Tue 10–20 more personal emails. Fix everything hit on Monday.
Wed Remaining ring-1 list. First cohort check: who activated?
Call or email everyone who signed up but didn't activate.
Thu One community post where your users are (ring 2).
Answer every comment within the hour.
Fri Review: sign-ups, activation, first core-loop repeats,
top 5 problems, quotes. Set Monday's first bet.
Write down who you will talk to next week (≥ 5 people).First users: do things that don't scale
Paul Graham's essay "Do Things That Don't Scale" (July 2013) is the canonical text for this phase. His core points:
| Graham's point | What he says (quoted where marked) | What it means for you |
|---|---|---|
| Recruit users manually | "The most common unscalable thing founders have to do at the start is to recruit users manually." | email, message and meet people one by one; don't wait for them to find you |
| The Collison installation | Stripe's founders, when someone agreed to try Stripe, would say "Right then, give me your laptop" and set them up on the spot. "At YC we use the term 'Collison installation' for the technique they invented." | don't send a link and hope; onboard them now, on a call, until they've got value |
| Airbnb door to door | the founders' unscalable work consisted of "going door to door in New York, recruiting new users and helping existing ones improve their listings" | go to where the users are and help them succeed personally |
| Delight users | "Wufoo sent each new user a hand-written thank you note." "It's not the product that should be insanely great, but the experience of being your user." | make up for an incomplete product with attentiveness |
| Be a consultant first | Graham suggests consulting-like techniques, including using your software yourself on the customer's behalf | set it up for them, import their data, run it for them |
| Fragility | startups are fragile at the start, so early growth has to be pushed by hand | the product won't take off by itself; you're the engine for now |
The Airbnb photography story is a separate, well-documented example: Joe Gebbia has described (First Round Review) how, with New York revenue stuck at about $200 a week, the founders went to New York, rented a camera and replaced hosts' poor listing photos, which doubled weekly revenue to about $400. The lesson isn't photography; it's going to the users and fixing the thing between them and value, by hand.
Unscalable tactics for the first 50 users
- Onboard every user on a 20-minute call, and watch where they struggle.
- Import their existing data for them (spreadsheet, old tool, email).
- Reply to every sign-up personally within an hour: "I'm the founder; what made you sign up?"
- Check the events table daily; message anyone who stalled before activation.
- Build tiny features for individual customers when it keeps them (and log them; don't let them become the roadmap).
- Visit, or at least video-call, the five most active users.
Channels
For the first users, rank channels by fit (are your users there?), not by reach.
| Channel | Effort | Speed | Fit for MVP stage | Notes |
|---|---|---|---|---|
| Personal network | low | immediate | good for ring 0–1 if they're the target segment | friends are polite; count only target users |
| The people you interviewed | low | immediate | best: they told you they have the problem | they're the soft launch list; ask each for two introductions |
| Niche communities (subreddits, Discord, Slack groups, forums, trade groups) | medium | days | very good if your users gather there | read the rules; give value first; disclose you're the founder; one post per community, not a spam run |
| Show HN | medium | one day | good for developer, technical and indie products; weak for most consumer or non-technical B2B | must be something people can try; see the guidelines below |
| Product Hunt | medium–high | one day | good for maker/tech-savvy early adopters; rarely your actual niche | a spike, not a channel; prepare assets and be present all day |
| Content / SEO | high | months | good long-term for problems people search for | start in Phase 5, write answers to the questions users asked you |
| Cold outreach (email, LinkedIn) | high | days–weeks | good for B2B with an identifiable buyer | personal, specific, short; 20 good ones beat 500 templated ones |
| Partnerships / integrations | high | weeks–months | good when another product already serves your users | a marketplace listing, a co-marketing post, an agency that resells |
| Paid ads | medium + money | days | usually poor before retention exists | ads amplify a working funnel; they don't create one |
Show HN rules that trip people up
From the Show HN guidelines (opens in a new tab): a Show HN is "something you've made that other people can play with". Blog posts, sign-up pages, newsletters, lists and other reading material don't qualify, and landing pages and fundraisers aren't allowed. Make it easy to try "ideally without barriers such as signups or emails"; "If your work isn't ready for users to try out, please don't do a Show HN"; and "Please don't ask friends to upvote or comment." Be around to answer questions. A first comment from the maker with the backstory is a common convention, not a rule.
Launch post templates
SHOW HN
Title: Show HN: <Name> – <what it does, in plain words>
e.g. "Show HN: Rotabase – shift rotas for small cafés
that staff get by SMS"
URL: a page where people can try it (demo account or no
signup), not a landing page
First comment (you, straight away):
Hi HN, I'm <name>. I built <Name> because <specific problem,
ideally from your own or your interviewees' experience>.
What it does: <2–3 sentences, concrete>.
How it works: <the interesting technical bit, briefly>.
What's different from <obvious alternative>: <honest answer>.
Current state: <what works, what doesn't yet>. Pricing: <…>.
You can try it at <url> without signing up (demo data).
I'd especially love feedback on <one specific question>.
I'll be here all day to answer questions.COMMUNITY POST (subreddit, Slack, Discord, forum)
Title: I built a <thing> for <this community's specific
problem> — looking for feedback from <role>s
Body:
<1–2 lines: who you are and your connection to the
community. Disclose that you made it.>
The problem: <in the community's own words; reference a
common thread or complaint if there is one>.
What I built: <2–3 sentences>. <screenshot or 30-sec GIF>
It's <free while in beta / £X per month / free for the
first N members of this group>.
What I'm looking for: <honest feedback / 5 people to try
it this week / to know if this is useless for you>.
Link: <url>
<Stay in the thread. Reply to every comment. No sock
puppets, no vote asks.>PERSONAL EMAIL (to someone you interviewed)
Subject: The thing we talked about in <month>
Hi <first name>,
In <month> you told me <their problem, in their words —
"I spend Sunday nights redoing the rota on WhatsApp">.
I've built a first version of something to fix that and
you're one of the first <10/20> people I'm showing it to.
<One sentence on what it does for them.>
Could I get you set up on a 20-minute call this week? I'll
do the setup with you (<import your staff list / connect
your account>) so it's useful from day one. <Calendar link>
Or try it straight away here: <url>
It's rough in places — anything that annoys you, reply to
this email and I'll fix it.
Thanks again for your help back in <month>,
<name>FOLLOW-UP (sent 3–5 days after sign-up, triggered by events)
If activated: "You've <sent your first rota> — how did your
staff find it? What would make you use it
every week?"
If not activated: "I noticed you signed up but didn't get to
<first value>. Was something confusing or
missing? 10 minutes on a call and I'll set it
up with you: <calendar link>"Onboarding and activation
Activation is the moment a new user first gets the core value (the aha moment from product design), defined as an event, measured as a rate: activated users ÷ sign-ups in a cohort, within a time window (e.g. 7 days).
| Lever | Tactic | Measure |
|---|---|---|
| Time to value | cut every step before the aha that isn't strictly needed (verification, profile, settings) | median time from account_created to first-value event |
| Empty states | sample data or a template; one primary action | % who take the first action in session one |
| Setup for them | import data, pre-configure, onboarding call | activation rate of assisted vs unassisted users |
| Event-triggered nudges | emails based on what they did or didn't do, not on a fixed schedule | re-engagement of stalled users |
| Checklist | 3–5 steps to value, visibly progressing | checklist completion |
| Remove the paywall from the aha | trial or free usage up to the first value | activation before vs after payment step |
At MVP scale, the funnel is a list of names. With 40 sign-ups, look at each non-activated account and ask why; don't A/B test.
Metrics
Early metrics exist to answer three questions: do people get value (activation), do they come back (retention), will they pay (revenue). Everything else is secondary until those are answered.
AARRR pirate metrics
Dave McClure's "Startup Metrics for Pirates" (talk, 2007) splits the customer lifecycle into five stages.
| Stage | Question | MVP-stage metric | Most common mistake |
|---|---|---|---|
| Acquisition | where do users come from? | sign-ups per week by source | optimizing traffic before activation works |
| Activation | do they have a great first experience? | % of sign-ups reaching the first-value event within 7 days | measuring sign-ups instead |
| Retention | do they come back? | % of each cohort completing the core loop in week N | counting logins or opens instead of core actions |
| Referral | do they tell others? | invites sent, sign-ups from referrals, "how did you hear about us?" | building a referral program before anyone loves it |
| Revenue | do they pay? | trial → paid conversion; paying accounts; MRR | deferring pricing "until we have scale" |
Order of attack for an MVP: activation → retention → revenue → referral → acquisition. Pouring acquisition into a leaky bucket just produces bigger churn numbers.
North Star metric
One number that captures the value delivered to customers and predicts long-term revenue, e.g. "rotas published per week", "invoices paid through the product per week", "nights booked". Rules: it counts value delivered, not activity; it's a rate over time; it moves weekly; the team can influence it. At MVP stage it's usually "number of core loops completed per week by retained accounts". Pair it with a guardrail (e.g. churn) so you can't game it.
Vanity vs actionable metrics
Eric Ries (The Lean Startup, 2011) contrasts vanity metrics (numbers that go up and make you feel good but don't inform decisions) with actionable metrics that tie cause to effect.
| Vanity | Actionable instead |
|---|---|
| total sign-ups (cumulative) | activation rate per weekly cohort |
| page views, launch-day traffic | sign-ups per week from each channel, and their week-4 retention |
| upvotes, followers, likes | replies, calls booked, paying customers |
| total users | weekly active accounts completing the core loop |
| "time on site" | time to first value (lower is better) |
| waitlist size | % of waitlist that activated when invited |
Retention cohorts
A cohort table groups users by sign-up period and shows what share is still doing the core action in each later period. It's the single most important chart in Phase 5.
WEEKLY COHORTS: % of each sign-up week's users who completed
the core loop in week N after sign-up
Cohort Users W0 W1 W2 W3 W4 W5 W6 W7
Sep 01 22 100% 45% 32% 27% 23% 23% 23% 23%
Sep 08 31 100% 48% 35% 29% 26% 26% 26%
Sep 15 19 100% 53% 42% 37% 37% 37%
Sep 22 40 100% 55% 45% 40% 40%
Sep 29 27 100% 59% 48% 44%
Oct 06 35 100% 60% 51%
Oct 13 24 100% 63%
W0 = activated users (100% by definition).How to read it:
- Across a row: how one cohort decays. The shape matters more than any single number.
- Flattening: in this example every cohort stops declining after 3–4 weeks. A curve that flattens to a stable plateau means a core group gets lasting value; it is the clearest early product–market fit signal.
- Down a column: are newer cohorts better? W1 rising from 45% to 63% means the iterations are working.
- Declining to zero: if every row trends toward 0% with no plateau, you don't have a retained core yet, whatever the sign-up numbers say.
- Small numbers: with 22 users, one person is about 4.5 points. Look at the trend across several cohorts, and read the names behind the percentages.
- Match the period to the natural usage frequency: daily for a messaging app, weekly for a rota tool, monthly for invoicing. Weekly cohorts for a monthly-use product will look like failure.
Churn math
Monthly churn compounds. With monthly churn rate (share of customers lost per month):
| Monthly churn | 2% | 3% | 5% | 7% | 10% |
|---|---|---|---|---|---|
| Annual churn | 21.5% | 30.6% | 46.0% | 58.1% | 71.8% |
| Average lifetime | 50 months | 33 months | 20 months | 14 months | 10 months |
Worked example: at $30 a month, 80% gross margin and 5% monthly churn, LTV ≈ $30 × 0.8 ÷ 0.05 = $480. Halve churn to 2.5% and LTV doubles to $960. At MVP scale churn estimates are noisy; talk to every churned customer instead of trusting the decimal.
Distinguish logo churn (customers lost) from revenue churn (MRR lost); expansion revenue can make net revenue churn negative even when logos churn.
DAU/MAU and stickiness
(daily actives ÷ monthly actives) is a stickiness ratio: 1.0 means everyone uses it every day, about 0.2 means a typical user shows up roughly 6 days a month. It only makes sense for products meant for daily use. For a weekly-use product use WAU/MAU or weekly core-loop completion; for a monthly-use product, monthly retention. Define "active" as doing the core action, not opening the app.
NPS and its critiques
Net Promoter Score (Fred Reichheld, "The One Number You Need to Grow", Harvard Business Review, December 2003) asks "How likely are you to recommend…?" on 0–10. Promoters 9–10, passives 7–8, detractors 0–6; , from −100 to +100.
| Critique | Detail |
|---|---|
| weak evidence as the growth predictor | Keiningham et al. (Journal of Marketing, 2007) could not replicate Reichheld's claim that NPS is the single best predictor of growth |
| throws information away | an 11-point scale collapsed into three buckets; very different distributions give the same score |
| intention ≠ behavior | people who say they'd recommend often don't; actual referrals are measurable |
| noisy at small n | with 30 responses, the score swings wildly from one person |
| easily gamed | "please give us a 10" prompts, surveying only happy users |
For an MVP, skip NPS. Ask the Sean Ellis question (below), count real referrals, and read the free-text answers.
Product–market fit
Marc Andreessen's "The only thing that matters" (June 2007) defined it: "Product/market fit means being in a good market with a product that can satisfy that market." He describes the absence as customers not quite getting value, word of mouth not spreading, usage not growing that fast; and the presence as customers "buying the product just as fast as you can make it". More of his thinking is on a16z advice.
| Signal | No PMF yet | Getting close | PMF |
|---|---|---|---|
| Retention curve | declines toward zero | flattens, but low | flattens at a healthy plateau for your category; newer cohorts better |
| Sean Ellis score | well under 40% "very disappointed" and flat | rising toward 40% | ≥ 40% |
| Acquisition | every user hand-recruited | some organic and referral sign-ups | word of mouth brings a meaningful share; one channel is repeatable |
| Revenue | nobody pays, or only friends | some pay, many hesitate on price | people pay without much persuasion; price objections are rare |
| Support load | silence | feature requests | you can't keep up; users complain when it's down |
| Your feeling | pushing a boulder | some weeks pull, some push | demand pulls you; you're scrambling to keep up |
The Sean Ellis test
Sean Ellis (who led early growth at Dropbox, LogMeIn and Eventbrite) proposed asking users "How would you feel if you could no longer use [product]?" with the options very disappointed, somewhat disappointed, not disappointed. In his experience, products where at least 40% answered "very disappointed" were able to grow sustainably; those below usually struggled. The threshold is a heuristic from his observation of startups, not a law.
- Survey only users who have experienced the core product recently. Rahul Vohra, following Ellis, targeted users who used it at least twice in the last two weeks.
- Vohra reports results start to become directionally correct at around 40 respondents.
- Segment the results: the score for your best segment matters more than the average.
Superhuman's PMF engine
Rahul Vohra, "How Superhuman built an engine to find product/market fit" (First Round Review, 2018). Superhuman's score went from 22%, to 33% after segmenting to the users who loved it, to 58% after three quarters of working the engine.
PMF SURVEY (Superhuman / Sean Ellis)
Send to users who used the core product ≥ 2× in last 2 weeks.
1. How would you feel if you could no longer use <product>?
( ) Very disappointed ( ) Somewhat disappointed
( ) Not disappointed (it isn't really that useful)
2. What type of people do you think would most benefit from
<product>?
3. What is the main benefit you receive from <product>?
4. How can we improve <product> for you?
THE ENGINE (repeat every quarter; track the score weekly)
a. Segment: find who answered "very disappointed"; describe
them (role, company, use case). That's your high-
expectation customer. Re-score using only that segment.
b. Understand why they love it (Q3 from "very disappointed").
c. Understand what holds back the "somewhat disappointed"
whose main benefit matches (Q4). Ignore the "not
disappointed" for roadmap purposes.
d. Roadmap: half on doubling down on what the lovers love,
half on fixing what holds back the somewhat-disappointed.
e. Re-survey new users; watch the score move.The weekly iteration loop
Phase 5 runs as a fixed weekly cadence. The unit of work is one bet: a change with a hypothesis and a metric.
| Day | Step | Output |
|---|---|---|
| Mon | Talk to users: ≥ 3–5 conversations a week (new, activated, churned) | notes, quotes, patterns |
| Mon | Review metrics: activation, cohort table, core loops per account, revenue, top errors | the weekly review note |
| Tue | Pick one bet: the change most likely to move the weakest metric; write the hypothesis | bet card |
| Tue–Thu | Ship: build, deploy behind a flag if needed, turn it on | live change |
| Fri | Measure early signal, write up, update the bet log; message users affected | bet result (or "too early, check next week") |
WEEKLY REVIEW week of ________
NUMBERS (this week / last week)
Sign-ups: ___ / ___ by channel: ____________________
Activated (7-day): __% / __% time to value: ___ / ___
Core loops completed: ___ / ___ per active account: ___
Cohort W4 retention (latest mature cohort): __%
Paying accounts: ___ / ___ MRR: ___ churned: ___
Errors (new/unresolved): ___ downtime: ___
TALKED TO (≥ 5)
1. ________ (activated/stalled/churned) — key quote: "___"
2. ...
PATTERNS
- ______________________________________________________
LAST WEEK'S BET
Hypothesis: ____________ Result: ______ Keep/Revert/Iterate
THIS WEEK'S BET
Because we saw ________________________________ (evidence)
we believe ____________________________________ (change)
will move _______________ from ___ to ___ (metric, target)
We'll know by _________ (date). Effort: ___ days.
NOT DOING (and why)
- ______________________________________________________Rules:
- One bet at a time, sized to ship within the week. Big bets get cut into weekly slices.
- Every bet names the metric it should move. "Users asked for it" is evidence, not a hypothesis.
- Fix activation before retention before acquisition. Work on the weakest stage in AARRR order.
- Bugs that hit the core loop jump the queue; everything else competes with the bet.
- Small numbers: with tens of users, "measure" often means "did the specific users we targeted behave differently?" Look at names, not p-values.
Prioritization
Use a scoring model to make trade-offs explicit, not to outsource judgment.
RICE
Intercom's RICE (Sean McBride, Intercom blog):
| Factor | Measure | Scale |
|---|---|---|
| Reach | people or events affected in a period | e.g. accounts per month |
| Impact | effect on each person | 3 massive, 2 high, 1 medium, 0.5 low, 0.25 minimal |
| Confidence | how sure you are of the estimates | 100% high, 80% medium, 50% low |
| Effort | total work | person-months in the original; use person-days for an MVP |
ICE
ICE (popularised by Sean Ellis for growth experiments): score Impact, Confidence and Ease from 1 to 10 each, and multiply or average them. It's faster and cruder than RICE, which suits weekly bets.
| Candidate bet | Impact | Confidence | Ease | ICE (product) |
|---|---|---|---|---|
| import staff from CSV in onboarding | 8 | 7 | 6 | 336 |
| SMS reminder 2 h before a shift | 5 | 6 | 8 | 240 |
| calendar sync | 6 | 4 | 3 | 72 |
| dark mode | 1 | 9 | 7 | 63 |
Caveats: scores are guesses dressed as numbers; Confidence should drop if the only evidence is one loud user; and anything on the core loop or blocking activation beats a higher-scoring nice-to-have.
Feedback collection
| Source | How | Watch out |
|---|---|---|
| In-app widget | one-line "What's missing?" box on key screens; screenshot optional | mostly feature requests; dig for the problem behind them |
| Support as research | you answer every support message yourself; tag each by theme | the loudest users aren't the typical ones |
| Continuing interviews | 3–5 conversations a week: activated, stalled and churned users | only talking to fans |
| Churn interviews | every cancellation gets a personal email asking why (and a call offer) | "too expensive" often means "not valuable enough" |
| Session replay / watching | watch a few real sessions a week (with consent and masking) | privacy; don't record sensitive fields |
| Behavioral data | events and cohorts | tells you what, never why |
Feedback log: one row per piece of feedback: date, user, segment, verbatim quote, underlying problem, count. Build for problems with several independent mentions from your target segment, not for the single request from the biggest talker. Interview technique (past behavior, not opinions about the future) is covered in validation.
Pricing experiments
| Principle | Practice |
|---|---|
| Charge early | a price from the first real use (after a trial if needed); "free until we're sure" means you're never sure |
| Price is a test of value | if nobody objects to the price, it's probably too low; if everyone does, the value isn't clear |
| Test on new cohorts | change the price for new sign-ups; keep existing customers on their price (grandfather) |
| Talk about money in interviews | ask churned and trial users what they compared the price against |
| Value metric | charge on the unit that grows with value (locations, invoices, active users), not an arbitrary seat count |
| Annual plans | add once monthly retention is known; the discount buys cash and commitment |
| Fewer plans | one or two plans until you know which features different segments value |
| Don't A/B test price on tiny traffic | with tens of sign-ups a week the test can't reach a conclusion; change it for a period and compare cohorts |
A useful early experiment: raise the price for new sign-ups by a meaningful step (say 50–100%) and watch trial → paid conversion for the next few cohorts. If conversion barely moves, keep the new price.
Pivot, persevere or quit
Eric Ries (The Lean Startup, 2011) defines a pivot as a structured course correction to test a new fundamental hypothesis about the product, strategy and engine of growth, and lists ten types:
| Pivot type | What changes | Example move |
|---|---|---|
| Zoom-in | one feature becomes the whole product | the "send rota by SMS" feature is all anyone uses; drop the rest |
| Zoom-out | the product becomes one feature of a larger product | a shift-swap tool becomes part of full scheduling |
| Customer segment | same product, different customer | cafés don't care, but gyms with class instructors do |
| Customer need | same customer, different problem | café owners' real pain is payroll, not rotas |
| Platform | application ↔ platform | from a tool to an API others build on |
| Business architecture | high margin, low volume ↔ low margin, high volume (e.g. B2B enterprise ↔ mass market) | from self-serve SMB to sales-led chains |
| Value capture | how you make money | from subscription to per-shift fee |
| Engine of growth | viral, sticky or paid growth | from paid ads to a referral loop |
| Channel | how you reach customers | from direct sales to a payroll-software marketplace |
| Technology | same solution, different technology | a cheaper or better way to deliver the same value |
| Signal | Persevere | Pivot | Quit |
|---|---|---|---|
| Retention | flattening, improving across cohorts | one segment or feature retains, the rest don't | no segment retains after several cycles |
| Ellis score | rising toward 40% | high in a narrow segment only | low everywhere, not moving |
| Qualitative | users pull you toward more of the same | users use it for something you didn't design for | polite indifference |
| Revenue | people pay; objections are about features | people would pay for something adjacent | nobody pays, even when it works |
| You | still believe in the problem | believe in the customer, not the solution | out of conviction, money or runway |
Kill criteria
Write them before launch, when you're unbiased, and date them. The sunk-cost trap is real: after months of work every metric looks "almost there".
KILL / PIVOT CRITERIA written: ________ (before launch)
Review date: ________ (e.g. 12 weeks after soft launch)
We will PERSEVERE if by the review date:
[ ] ≥ __ accounts complete the core loop weekly
[ ] latest mature cohort retention flattens at ≥ __%
[ ] ≥ __ paying customers (or ≥ __% trial → paid)
[ ] Sean Ellis "very disappointed" ≥ 40% in best segment
(≥ 40 responses)
We will PIVOT (pick the type) if:
[ ] one segment/feature clearly outperforms the rest
[ ] users consistently use it for an adjacent job
We will STOP if:
[ ] none of the above after __ iteration cycles, OR
[ ] runway below __ months with no persevere signal, OR
[ ] we no longer want to work on this problem for 5+ years
Signed: ____________ Witness (co-founder/friend): ________Quitting on schedule is a success of the process: you learned cheaply and get your time back for the next idea, which goes back to ideation with better instincts.
Growth loops vs funnels
Reforge's "Growth loops are the new funnels" (Brian Balfour, Casey Winters, Kevin Kwok and Andrew Chen, 2018) argues the AARRR funnel misrepresents how the fastest-growing products grow. Their definition: "Loops are closed systems where the inputs through some process generates more of an output that can be reinvested in the input." Funnels are one-directional and need constant new input; loops compound.
| Loop type | Mechanism | Example |
|---|---|---|
| Viral / invite | users invite others because the product works better with them | a shared rota: every staff member who receives it sees the product |
| User-generated content + SEO | users create content that search brings new users to | public templates or answers that rank |
| Paid | revenue from users funds acquisition of more users | ads paid for by first-month revenue, if LTV well exceeds acquisition cost |
| Sales | revenue funds salespeople who close more revenue | B2B once a repeatable sales motion exists |
| Product-embedded | the output carries the product to non-users | "Sent with [product]" on invoices or emails |
For an MVP, don't design loops up front. Notice which one appears naturally in the first cohorts (who invited whom? where did organic sign-ups come from?) and reinforce it. Funnels are still the right lens for diagnosing where individual users drop off; loops are the lens for how growth compounds.
Friction points and fixes
| Friction point | Symptom | Fix |
|---|---|---|
| Launch fear | "one more feature before we launch"; launch date keeps slipping | the rings model: the soft launch is to 20 people who already know you; nobody else is watching |
| Launching to nobody | site live, one tweet, silence | personal emails to the launch list; no list means back to interviews |
| Big-bang launch | Product Hunt on day one; onboarding breaks; the spike leaves | public launches only after strangers activate unaided |
| Vanity metrics | celebrating total sign-ups and upvotes | the weekly review uses cohort activation, retention and paying accounts only |
| Feature treadmill | shipping a feature a week; retention unchanged | every bet names a metric; if three bets in a row don't move it, stop building and go talk to users |
| Talking to no one after launch | decisions from dashboards alone | ≥ 5 conversations a week, scheduled like meetings; "talked to" is a line in the weekly review |
| Building for the loudest user | roadmap driven by one customer's requests | feedback log with counts and segments; build for patterns |
| Premature scaling | hiring, paid ads, infrastructure before retention | AARRR order: nothing spent on acquisition until activation and retention hold |
| Never deciding | "let's give it another month", forever | dated kill criteria; formal pivot-or-persevere review every 6–8 weeks |
| Pivoting too often | new direction every fortnight; no cohort ever matures | a pivot needs at least one mature cohort of evidence (4–8 weeks) |
| Free forever | lots of users, no signal on value | introduce a price for new users; watch who stays |
| Ignoring churn | "they weren't our target anyway" | email every churned user personally; tag reasons in the feedback log |
Exit criteria / handoff
There's no single day when the MVP phase ends, but there are recognizable signals. You are done with the MVP phase when all three hold for your core segment:
| Signal | Evidence | Typical check |
|---|---|---|
| Retention | cohort curves flatten at a stable plateau; newer cohorts equal or better; Ellis score ≥ 40% in the core segment | cohort table, PMF survey with ≥ 40 responses |
| Repeatable acquisition | at least one channel brings a predictable number of new activated users each week without heroics | sign-ups by channel over 4–8 weeks |
| Willingness to pay | customers pay at a price that could support the business; price objections are rare; churn is understood | paying accounts, trial → paid, churn interviews |
MVP PHASE EXIT (handoff to "startup": growth, team, funding)
[ ] Core segment named precisely (who loves it, and why)
[ ] Retention curve flattened for ≥ 3 consecutive cohorts
[ ] Sean Ellis ≥ 40% "very disappointed" (≥ 40 responses)
[ ] One repeatable acquisition channel with known conversion
[ ] Paying customers at a price you'd keep; unit economics
sketched (ARPA, gross margin, churn → LTV)
[ ] Weekly iteration cadence running; bet log with results
[ ] Manual work listed: what must be automated to handle 10×
[ ] Decision recorded: grow (bootstrap or raise), pivot, stopWhat comes next is a different game: automating the unscalable work, hiring, and possibly raising money. For fundraising, demo days and investor expectations, start with Y Combinator's advice; for market-first thinking and the venture perspective, a16z; for how other founders handled this transition, founders. If the signals say pivot or stop, go back to ideation or validation with what you learned.
References
- Paul Graham, "Do Things That Don't Scale" (July 2013) (opens in a new tab): manual recruiting, the Collison installation, Airbnb door to door, delighting users
- First Round Review, "How design thinking transformed Airbnb from a failing startup to a billion-dollar business" (opens in a new tab): Joe Gebbia on the New York photos and the $200 → $400 weekly revenue
- Hacker News, Show HN guidelines (opens in a new tab): what qualifies and how to behave
- Dave McClure, "Startup Metrics for Pirates: AARRR!" (talk and slides, 2007): the five-stage customer lifecycle metrics
- Marc Andreessen, "The only thing that matters" (2007) (opens in a new tab): the definition of product/market fit
- Rahul Vohra, "How Superhuman built an engine to find product/market fit" (First Round Review, 2018) (opens in a new tab): the four-question survey, segmentation, the 50/50 roadmap
- Sean Ellis, "Using product/market fit to drive sustainable growth" (opens in a new tab): the 40% "very disappointed" benchmark in his words
- Sean McBride, "RICE: simple prioritization for product managers" (Intercom) (opens in a new tab): the RICE formula and scales
- Eric Ries, The Lean Startup (Crown Business, 2011): vanity vs actionable metrics, pivot types, pivot or persevere
- Brian Balfour, Casey Winters, Kevin Kwok, Andrew Chen, "Growth loops are the new funnels" (Reforge, 2018) (opens in a new tab): loops vs funnels
- Fred Reichheld, "The one number you need to grow" (Harvard Business Review, December 2003) (opens in a new tab): the origin of NPS
- Timothy Keiningham et al., "A longitudinal examination of Net Promoter and firm revenue growth" (Journal of Marketing, 2007) (opens in a new tab): the replication that challenged NPS's predictive claims