Cofounder and I have different opinions on paying for marketing. We're a consumer startup in sports. We've got 200+ MAUs, but engagement isn't strong on the app.
Question: how should we spend our financial and time resources (we also work full-time jobs)?
Cofounder wants to spend 100% in improving engagement of existing users. His argument is new customer acquisition is not necessary since we have a user-base, and would be distracting. My proposal is 95/5. 95% resources spent in improving existing user engagement/retention, and 5% in new customer acquisition. Rationale: to learn about CPF (channel product fit), diversify user-base, and minimize dependency on existing users.
Would appreciate your vote on the following poll.
I think any paid user acquisition for the purpose of growth and not for purpose of learning (example, we need traffic to improve our experience), doesn't make sense until you have product market fit and have a good idea of how much you're going to get back in a given period of time after marketing $ is spent.