Why churn will kill your growth
Before you even notice it
Time: 3.20 Minutes
Every asked yourself why everyone is so obsessed about churn metrics? No?
Let me give you an example…
You’re adding new customers every month. Revenue is climbing. You feel like you’re winning.
Then you check retention and realize you’re filling a leaky bucket…
Jason Cohen nailed this with his concept of max ARR, the ceiling your business can’t break through because churn eats everything you add.
Imagine, you’re losing 5% of revenue every month, there’s a mathematical limit to how big you can get. No amount of new sales will ever fixes this.
Here's the brutal math:
You're adding $100k in new ARR monthly but losing 5% to churn.
Your maximum ARR caps at $2M. Ever.
You can't get past it because at $2M, you lose $100k monthly to churn, exactly what you're adding.
The treadmill stops moving forward.
Churn isn’t a retention problem. It’s a product problem, a pricing problem, an onboarding problem, or a customer-fit problem.
Fix churn first. Because until you do, every dollar you spend on growth is just funding your leaky bucket.
So listen to your churn rate and stay curious.
Your favourite Domi.
PS I would love if you can give me a follow at X here.
Feedback please! Help your favourite Domi to make all of this even better…
Click on a link to vote or use the comment section below:
Please share the Jupiter Dispatch with a friend and help me to grow.
Have an epic time, see you soon for the next Transmission…
👋



