skills/smithery.ai/growth-model-construction

growth-model-construction

Installation
SKILL.md

A growth model is a formulaic representation of your business, typically built in a spreadsheet, that maps how acquisition, retention, and monetization interact. Its primary value is not forecasting, but providing a "common currency" to compare the ROI of different product initiatives.

The Construction Process

1. Build the SaaS Foundation

Start with the three linear building blocks. Even for non-SaaS businesses, these are the starting points:

  • Acquisition: Map your channels (Paid, Organic, Viral). Define inputs: Traffic/Spend → Conversion Rate → New Users.
  • Retention: Create a survival curve. Define: Activation Rate → Monthly/Annual Retention Rate.
  • Monetization: Define the base revenue per user (e.g., Subscription Fee).

2. Layer Transactional Complexity

If the business is transactional (e.g., E-commerce, Marketplace), add the following variables:

  • Frequency: Transactions per month/year per retained user.
  • Average Order Value (AOV): Revenue per transaction.
  • Unit Economics: Model the Contribution Margin (Revenue minus COGS and marginal costs like shipping or support).
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growth-model-construction from smithery.ai