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I am a big fan of AARRR. But it has one major issue: it focuses on Acquisition instead of Retention. And that will destroy your mobile startup.

  • GP

    Gabor Papp

    12 days ago #

    Awesome, thanks for shairng it Morgan!

  • JB

    Joseph Bentzel

    12 days ago #

    Good read and good contribution to a necessary discussion. Especially calling out the monopoly power of companies like Facebook that command top position in app stores.

    The application of AARRR has MANY problems, not just the sequencing of retention in the overall mix.

    And retention as a thing in itself is never primary. It has grown to be perceived that way as startups game VCs for investment based on perceived "traction".

    In short, the "freemium" model has skewed AARRR, forking it into a tool to demonstrate "growth" to VCs absent revenue.

    REVENUE is the most important.

    Revenue makes founders self-sufficient and non-dependent on investors who do things like fire founders and drop in their own players.

    After revenue it's the COST OF CREATING AND SUSTAINING REVENUE, aka marketing/sales expense or in the SaaS/cloud world, CAC that it is the most important. Startups die from high marketing/sales burn. Period.

    Keep pushing back on AARRR. You are not alone.

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