Framework
See 60% DAU/MAU? Just invest: that is lightning in a bottle
Pincus says if you have to ask whether something is lightning in a bottle, it isn't. His hard rule: when 60% of people who try a product come back every day, as with Facebook and Friendster, invest.
“I just think there are patterns that you can just see. There are metrics like every time you see 60% DAU to MAU, just invest. That was Facebook. That was, Friendster, when, when 60% of the people who, you know, tried this come back every day, then you get that kind of engagement. That's just lightning in a bottle.”
Steal thisTreat a ~60% DAU/MAU ratio as a buy signal; anything you have to ask others about is not it.
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