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A Summary of

Building a Growth Framework Towards a $100 Million Product

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Market Product Fit

  • Define your category, who, product, motivations
  • Identify core value prop, hook, time to value, stickiness

Product Channel Fit and Channel Model Fit

  • Make sure your channel hypotheses aligns with Channel Model Fit on the ARPU/CAC Spectrum

Revisiting Target Audience, Model Market Fit

  • Model Market Fit states that ARPU x Total Customers In Market x % You Think You Can Capture >= $100M

Introducing A New Tier, Lack Of Channel Model Fit

  • Talk to your paying customers, and gauge their willingness to pay depending on additional features and product pricing tiers.

Strategy Shift, Changing Everything

  • There are really only two choices: choose the model or choose the market.

Takeaways:

  1. You need all four fits to align to be able to grow into a $100M+ company in a venture-backed timeframe.
  2. When you change one component within the framework, you need to revisit and change the rest.
  3. The fits are always changing and evolving.
  4. If you are building a new line of business inside a larger company, avoid pursuing a path where all the components of the framework are different than those of the existing core business.
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