5 Strategies For Balancing Revenue Versus User Growth
Some analysts argue that revenue drives growth, while others say user growth drives revenue. Revenue growth (top line) then had to be converted into profit growth (bottom line), before a business was deemed to be self-sustaining and worthy of public investment. Long-term stability requires revenue growth and profit. Startup productivity is embodied in key ratios, including low cost of customer acquisition, high retention, and high revenue per employee. Thus even after a startup has achieved a critical mass of users, the expectation of long-term revenue growth and profitability does not go away.