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andrewchen.com

13 resources from andrewchen.com we point founders to, and the questions each answers.

📄 Article
✓ Link checked Free Intermediate

Why we picked it The definitive explanation of why every marketing channel decays over time, from an a16z general partner who wrote 650+ essays on growth.

The Law of Shitty Clickthroughs

From andrewchen.com by Andrew Chen ~8 min read

  • Over time, all marketing channels drift toward terrible click-through rates.
  • Banner CTR fell ~1500x from 1994 to 2011 as novelty and arbitrage disappeared.
  • Win by refreshing creative and finding the next under-priced channel early.
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✍️ Essay
✓ Link checked Free Intermediate

Why we picked it Andrew Chen ran rider growth at Uber and now invests at a16z, so this is the canonical breakdown of how marketplaces get off zero. He organizes the best thinking on the chicken and egg problem around one honest idea: you almost never launch supply and demand at once, you seed the harder side first (usually supply) in a tiny atomic network, then pull the easy side in. Treat it as a starting map of tactics, then pick the one or two that fit your city and niche.

Required reading for marketplace startups: The 20 best essays

From andrewchen.com by Andrew Chen ~20 min read

  • Solve the chicken and egg problem by picking the hard side (usually supply) and getting it dense in one narrow slice: a single city, campus, or vertical, before going wide.
  • Liquidity, not signups, is the real metric: enough activity that a buyer who shows up actually finds a match.
  • You can bootstrap one side manually (curate listings, run single-player-mode value) before the other side exists, which answers the 'no supply or demand yet' worry directly.
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✍️ Essay
✓ Link checked Free Intermediate

Why we picked it This essay reframes the question you are actually asking. Chen argues that a startup needs two separate insights, one about the product and a distinct one about distribution (which channel actually reaches your buyers), and that defaulting to a channel because it is the obvious one is how most founders stall. It is the honest starting point for deciding whether Google is even your channel or just the assumed one.

Startups need dual theories on distribution and product/market fit. One is not enough

From andrewchen.com by Andrew Chen about a 10 minute read

  • Product-market fit and a distribution insight are two different problems, and having a good product does not automatically tell you where your customers are.
  • The best channels are usually specific and small at first, and often built into how the product spreads, not a generic default like search.
  • If your buyers already gather somewhere (a network, a community), that is your channel to earn, not a channel you have to invent from scratch.
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✍️ Essay
✓ Link checked Free Intermediate

Why we picked it This is the piece that separates organic word of mouth from an engineered viral loop, and shows you how to actually design one. Chen walks through the four parts of a loop (the channel people share on, the sign-up funnel, the product hook that makes sharing worth it, and the on-ramps that feed it), so you can trace exactly where your spread leaks. Read it as the blueprint for turning that bit of natural sharing into a repeatable step in your product.

What's Your Viral Loop? Understanding the Engine of Adoption

From andrewchen.com by Andrew Chen Long essay, about 15 minute read

  • A viral loop is the specific path from a new user entering to that user bringing in the next set, treat it as a designed flow, not a hope.
  • Keep the invite funnel short (two to three steps), because most people drop off long before they finish sharing.
  • The product hook has to give the sharer real value (self-expression or genuine usefulness), or no incentive scheme will hold the loop together.
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✍️ Essay
✓ Link checked Free Intermediate

Why we picked it This is the clearest essay on why a flattening cohort retention curve is the thing that actually matters, and it lives on Andrew Chen's blog where the flattening-curve idea got popularized. It walks you from week-to-week churn to why the curve should stop dropping and level off, and makes the honest case that virality is worthless until retention is stable. A good starting point if you are staring at a retention chart and trying to figure out whether it is bottoming out or still bleeding.

Retention is King

From andrewchen.com by Jamie Quint ~12 min read

  • A healthy curve drops fast in the first few weeks, then flattens into a plateau. The plateau, not the starting number, is the signal you are looking for.
  • If your curve never flattens and keeps sliding toward zero, you do not have retention yet, and chasing more users just fills a leaky bucket faster.
  • Fix retention before you spend on growth or virality: users who churn cannot invite anyone, so retention compounds where top-line growth alone does not.
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✍️ Essay
✓ Link checked Free Intermediate

Why we picked it The real signal of product market fit is not a headline retention number, it is whether your cohort retention curve stops falling and flattens into a stable base of users who keep coming back. Andrew Chen is the canonical voice on this mental model, and he pairs the flattening curve with the power user smile so you can see where your sticky core actually lives. Read it as the frame for judging your own numbers, not as a pass/fail line.

Magic metrics indicating product/market fit (cohort curves that flatten, and the power user smile)

From andrewchen.com by Andrew Chen Short read (tweetstorm plus commentary)

  • A retention curve that flattens (instead of trending to zero) is the honest sign that some users are genuinely hooked.
  • The power user smile shows a concentrated core of engaged users that you can grow out from, so look at the shape, not just the average.
  • These are directional signals of product market fit, useful as a starting point rather than a strict benchmark to clear.
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🛠️ Tool
✓ Link checked Free Beginner

Why we picked it This is the template to stop guessing a single LTV number and plot your actual cohorts instead. You type in only the basics (how many customers you acquired each month and how many stayed each following month) and it works out retention, churn, MRR, and per-cohort lifetime value for you, so three months of data becomes three honest cohort rows rather than one made-up figure. It is a founder-friendly starting point, not a forecasting engine, which is exactly what you want this early.

The easiest spreadsheet for churn, MRR, and cohort analysis

From andrewchen.com by Christoph Janz (Point Nine Capital), guest post on Andrew Chen's blog Downloadable Excel template plus short guide

  • You only enter basic cohort data (acquired and retained per month); retention, churn, MRR, and LTV are calculated automatically.
  • Plotting your real cohorts side by side shows you the retention curve you actually have instead of a churn rate you assumed.
  • With only a few months in, treat the LTV cells as a live, updating estimate that firms up as each cohort ages, not a locked-in answer.
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✍️ Essay
✓ Link checked Free Intermediate

Why we picked it This is the piece that named the flat middle. Chen maps the exact stretch you are in: the launch hype is gone, product/market fit is not here yet, and every day feels like you are uniquely failing. His core reframe is that you are not, every startup crosses this valley, and his practical prescription is the same as ours: chase small tactical wins to keep morale and momentum alive while you grind toward fit.

After the TechCrunch Bump: Life in the Trough of Sorrow

From andrewchen.com by Andrew Chen 12 min read

  • The trough between launch and product/market fit is a predictable phase, not a personal failure, so stop reading it as a verdict on you.
  • Manufacture morale with small tactical wins rather than waiting on the big revenue moment that is not coming yet.
  • Keep the team small and nimble in the trough so you can run more product iterations per unit of runway.
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✍️ Essay
✓ Link checked Free Intermediate

Why we picked it The most common way founders fool themselves about PMF is believing the next feature will fix weak retention. Chen shows with data why that rarely moves the curve and why you should fix activation and the core value instead. Read it to stop mistaking a busy roadmap for progress toward fit.

The Next Feature Fallacy

From andrewchen.com by Andrew Chen ~1,800 words

  • One more feature almost never lifts a flat retention curve
  • Fix the activation step where most new users drop off first
  • If the core loop is not sticky, features cannot rescue it
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📄 Article
✓ Link checked Free Intermediate

Why we picked it Since supply is usually the side you bootstrap by hand, this is a focused list of 28 concrete ways real marketplaces did it. It goes wide (referrals, going vertical, recruiting from competitors, building tools sellers want) so you can find tactics that fit your category. Keep it as a brainstorming sheet when your supply side is stuck.

28 Ways to Grow Supply in a Marketplace

From andrewchen.com by Lenny Rachitsky (via Andrew Chen) 15 min read

  • There are many supply tactics, most marketplaces only need a few
  • Building a useful tool for sellers can pull supply in on its own
  • Recruit supply from wherever those sellers already operate today
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✍️ Essay
✓ Link checked Free Intermediate

Why we picked it Chen lays out the clearest early signal that people actually value your product: do cohorts keep coming back over time. He shows how to build a simple retention table by signup cohort rather than trusting raw totals. This is the one analytics view worth setting up even when everything else is noise.

How to measure if users love your product using cohorts and revisit rates

From andrewchen.com by Andrew Chen Medium read

  • Retention by cohort is the truest sign users love it
  • Pick the key action that represents real product value
  • Watch whether the curve flattens instead of falling to zero
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✍️ Essay
✓ Link checked Free Intermediate

Why we picked it This is the warning label for treating every customer request as a build order. Chen shows how a team can keep shipping requested features, keep honouring the letter of promises, and still slowly die because none of it moves the business. It sharpens the short answer's point that exciting or requested does not equal important.

This is the Product Death Cycle

From andrewchen.com by Andrew Chen

  • Building every requested feature can still lead nowhere
  • Ask why behind a request before you commit to building it
  • Honouring promises literally is not the same as growing
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✍️ Essay
✓ Link checked Free Intermediate

Why we picked it Chen watched a whole generation of startups build on Facebook's platform and then get squeezed as the platform protected itself. He explains why a platform is structurally motivated to keep any app from getting too big, and how free distribution quietly turns expensive. It is a clear, first hand account of the exact trap you are describing.

Why developers are leaving the Facebook platform

From andrewchen.com by Andrew Chen

  • Platforms will not let you become more valuable than they are.
  • Cheap early distribution gets crowded and costly over time.
  • Treat platform reach as rented, never owned.
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