What's a Vanity Metric anyway?
Vanity Metrics is not really vanity at all. When it becomes something you measure, it's more like Metrics of Hope. We fight 24/7 to get to our product-market fit. We are beyond problem validation and have some clients. That's when people in the vanity industry get a scent of us. We hold on to whatever positive metrics or experience we can come up with, and we are even proud of it! The only problem is that these results and metrics are only for the people working in the vanity business.
There is a new momentum to keep pushing, but we urge the wrong numbers.
We are like Icarus, flying higher and higher until eventually burnt by the sun, meeting our death. Our suns are the Vanity Metrics.
To avoid falling victim to the Metrics of Hope, we collected some for you. Be aware of the Sirens and use their pride well.
1. We got selected in a show, competition, accelerator, incubator, top list - you name it.
Countless events exist. You have to understand that the organizers need to produce content and display participants. Top lists always generate buzz and clicks. You were the one popping up on their screen. That's it. Not more, not less. Maybe you did something outstanding and had a great post that went viral on social media. This still doesn't change the fact that you are being leveraged. They need you.
And this has absolutely nothing to do with how much the market likes you. How much potential customers will love your product or service? If your product were shit, some positive press would not change that. As for any other thing, this can have benefits. An accelerator might give access to knowledge, a TV show can help you promote your brand and attract new colleagues more easily, and so on. You have to understand that the fact that it is happening to you is worthless. If you can build something upon it and use it to your advantage, it might create value for you as well. This happens rarely and requires preparation and mindset. Not sure if you should put your time on preparing for such events. You can use your time more effectively.
2. Press.
This is Vanity Metrics at its best. Especially if you are on the home page of one of the top publications, we feel that we are now an established business. The startup on the rise. Now, we are getting the credit we deserve. Bonus points if there was no PR budget behind it. I mean, without PR getting into Forbes or Fast Company, we must be good.
The same applies as in number 1. Looks good, doesn't bring anything to the table, not one step closer to product-market fit. And you can't pay your bills with it, either.
3. User numbers.
Now, this is where it gets tricky. Most of us would think user growth is growth. We must be on track because we are attracting users. This is probably the sneakiest of the Sirens. It is not evidently bound to grow.
In this early phase, every growth will necessarily result in user growth, but not every user growth will result in real growth; hence the Vanity Metrics stamp.
4. The name of the investor, celebrities who liked our page and post, and who gave you kudos for the idea.
Investors need projects, at least in Europe. They have more funds than serious projects. If you are not a serial killer on death row, you have a high probability of getting funding. However, no matter how high-profile your investor is, that won't bring YOU closer to product-market fit. No matter who is high on your idea, because they are not customers. Did they pay for it? Use it? Invest in you? Nope? Useless metrics, just a piece from the Lembas of Hope. Some fuel in the desert, but nothing more.
5. "I told you so" metric. (and counting it).
If we are innovating and some reinforcement comes our way, we tend to cherry-pick the stories that prove the right timing and generally think that we are right. Look, they see it! I told you, and now they see it too! It validates our idea or our way of thinking. Wrong conclusion.
It might validate the problem, but the fact that a lot of people talk or write about it won't make the solution easier to sell.
Here is a tough story for you: prostate cancer is a frequent topic. Still, you can't see people lining up in queues for prostate check-ups. In most countries, it's even free. A real problem, lot of buzz around, and we know prevention is critical... still, the potential target market doesn't care.
6. Number of employees, valuation
I consider these two to be the same, as it's about the size of our business. As you can see, it's not about our profitability, growth or efficiency. It's just the size. Size won't win this war. A valuation can be a vanity metrics for both startups and investors. Valuation is valid only when you can actually make sales happen. When you get rid of your stocks on the share price defined by valuation. When the local Forbes puts you on the cover as the new millionaire, billionaire, it's nothing but a headline. The fact is that you are just a well-paid employee on the startup shop-floor. You can end up dirt poor in a year. With vast experiences and network, but still living under the bridge. The number of employees is similar: when youlook down at your empire and see all the happy faces, fulfilling. Satisfaction. You create a job for all these people. They like their job, they love you. It'samazing! It's the best evidence for success. This is very similar to the number of users. When you are successful, you get big. But you are not successful because you're big. It's not the cause but the result of success.
All of the above doesn't mean that investors, newspapers, portals, TV shows, accelerators, or incubators are useless. This is not what I meant with this. I only want you to embrace that these are not metrics of success, although you might feel so. They are supporters and bystanders down your path, making money out of your journey. The journey which is about bringing something new and innovative to the market, to as many customers as possible. These are all good experiences and can add a lot to the team morale, give hope in the darkest hour and power to stand up and keep pushing.
Still, you must seek the same Holy Grail, the product-market fit; or if you are in the very early stage, the MVP, first customers, and initial (working) value proposition.
You can't allow yourself to get your eyes off the original goal, but you can have a nice sunbath. Just be careful not to get too much of the sunlight.
