In short: pick the few numbers that show attention turning into money that comes back. Instrument them before you spend on growth, report them to everyone who matters, and drop the vanity metrics from the top of the page.
Key points
- If a metric can rise while the business is no more likely to exist next year, it belongs in an appendix.
- In web3, report TVL, volume and users with and without incentivised activity; AI products should separate paid from free.
- Tag every link and referral by source and track activation and 30-day retention by source before spending.
- Write a rule for each channel saying what result would make you double it and what would make you stop.
- Investors, the team and the community should see the same core numbers at different levels of detail.
The question every number has to answer
Did someone do something that makes the business more likely to exist next year? If a metric can rise while the answer is no, it belongs in an appendix.
What to measure
| Stage | Web3 | AI | Why it matters |
|---|---|---|---|
| Activation | First deposit, first trade, first onchain action | First task completed, first integration live | Interest became use |
| Retention | Deposits and wallets still active at 30 / 90 days | Weekly active users or teams at 30 / 90 days | Use became habit |
| Revenue | Protocol fees or revenue, net of incentives | Paid accounts, net revenue retention | Habit became money |
| Efficiency | Cost per retained depositor, incentive spend per $ of sticky TVL | Customer acquisition cost, payback period | Money exceeds what it cost |
| Source | Which partner, campaign or referral brought them | Same | Where to spend next |
The incentive adjustment
In web3, separate what you paid for from what you earned. Report TVL, volume and users both with and without incentivised activity. If 80% disappears when incentives end, the honest number is the 20%, and investors will compute it whether you do or not.
The same principle applies to AI products running free tiers or heavy discounts. Report the paid and the free separately.
Instrument before you spend
The most expensive mistake in early GTM is a year of activity with no way to tell what worked. Before spending meaningfully on any channel:
- Tag every link and referral by source.
- Track activation and 30-day retention by source, not just in aggregate.
- For web3, map wallet addresses to campaigns where you can do so properly and lawfully.
- Write down what result would make you double the channel and what would make you stop it.
One report, three audiences
The monthly report you send investors should contain the same core numbers your team runs the business on, and a version of it should be what you share with your community. Different detail, same truth. If the investor update and the internal dashboard disagree, one of them is wrong.
What to stop reporting
- Impressions and reach, at the top of anything
- Follower counts as progress
- Waitlist size without a conversion rate
- Incentivised volume without the unincentivised number next to it
- "Partnerships announced" without what each one produced
The checklist
- [ ] Five numbers: activation, retention, revenue, efficiency, source
- [ ] Incentivised and organic reported separately
- [ ] Every channel tagged before money goes in
- [ ] A stop / double rule for each channel
- [ ] One monthly report, the same core numbers for every audience
Common questions
What metrics should a startup report instead of reach and impressions?
Five numbers: activation, retention, revenue, efficiency and source. For web3 that means things like first deposit, active wallets at 30 and 90 days, protocol revenue net of incentives and cost per retained depositor; for AI, first task completed, weekly active teams, net revenue retention and payback period.
How should a crypto project report TVL that includes incentives?
Report TVL, volume and users both with and without incentivised activity. If 80% disappears when incentives end, the honest number is the 20%, and investors will compute it whether you do or not.
Which vanity metrics should founders stop reporting?
Impressions and reach at the top of anything, follower counts as progress, waitlist size without a conversion rate, incentivised volume without the unincentivised number, and partnerships announced without what each produced.