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Making Money with Metrics

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Company tracks signup-to-paid funnel, finds low retention and discovers $5.5 million left on the table from existing users; fixes focus to conversion not acquisition. Builds simple instrumentation and built metrics features over a weekend to measure feature usage, press source quality and partner ROI. Press from CNN Money vs New York Times conversion shows traffic quality matters; a smaller partner sends fewer users but much higher revenue per user. Result: funnel conversion improves and revenue grows without major new marketing spends.

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