Sean Ellis: belief

Transcript context

…Awesome. And I was going to ask about revenue in your opinion there. And so your advice is don't make revenue or North star metric? No. Even Amazon, and again, this is just what I know of Amazon's as being but monthly purchases, but someone else might say Amazon, no Amazon's is GMV or something. But I think monthly purchases is great because it maps to value that people are getting from Amazon. And so even if I spend say $1000 on a TV set with Amazon versus $3 on a or $10 on an electric toothbrush, Amazon from the consumer's perspective delivered the same value. I needed something, Amazon helped me find that thing. And so units of value from the customer perspective I think is more important than overall revenue. But clearly with Amazon focusing on driving more monthly purchases, at least on their store side of the business, that has helped them become one of most valuable companies in the world. So I think focusing on value is, revenue should be a product of doing things. Right. It shouldn't kind of guide your day-to-day actions. To make this even more concrete for people, are there some North star metric examples you could share that you've seen that are good? Like say for Eventbrite or Dropbox or any companies you've worked with? And I'll share one real quick as you're thinking about it. At Airbnb, our North star metric was nights booked. And so it's similar to Amazon. It's not like the money Airbnb made from bookings, but it's like nights booked and it was really, and basically every experiment ran is like, is this increasing night booked or is this decreasing night's book?…

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