5.4
Channel–Model Fit
The constraint that revenue per user and purchase frequency determine which acquisition channels a business can afford at all.
Brian Balfour (18 July 2017)
What it does
A channel's arithmetic depends on the business model: low ARPU with low purchase frequency cannot fund any paid channel. Turns channel choice from creative preference into arithmetic.
When it breaks
Early on you do not know real ARPU or retention, so the arithmetic runs on optimistic estimates. Balfour gives no dollar thresholds. Any you see attached to this are someone's invention.
Case
Balfour maps the “ARPU-CAC danger zone” with real companies: low-ARPU ad models (Facebook, WhatsApp, Yelp) surviving only on viral and free channels, mid-ARPU tools (Slack, MailChimp, SurveyMonkey) in between, and high-ARPU enterprise (Palantir, Veeva) able to fund field sales.
Brian Balfour · Channel Model Fit ↗In the wild
Unchecked · not part of the tier
What people have written about this tool in the last twelve months. A machine found these and nobody has read them. Everything above this line was checked by hand.
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