What is Traction?
Traction is evidence that people want what you’re building. It’s the proof that your startup is gaining momentum in the market.
Types of Traction
Revenue Traction
- Monthly recurring revenue (MRR)
- Annual contract value (ACV)
- Revenue growth rate
User Traction
- Active users (DAU/MAU)
- User growth rate
- Engagement metrics
Engagement Traction
- Time in app
- Feature usage
- Retention curves
Why Traction Matters
- Proves product-market fit
- Attracts investors
- Enables hiring
- Validates assumptions
Building Traction
- Focus on one metric
- Talk to customers
- Iterate quickly
- Measure everything
- Double down on what works