Growth Channel Evaluation Template

Test 3-5 channels simultaneously during your first channel evaluation. Run each test for at least 4-6 weeks with enough budget to generate statistically meaningful results. After the initial round, focus 70-80% of resources on the 1-2 winners. Keep a small experimental budget (10-20%) to test one new channel per quarter. The [PLG Handbook](/plg-guide) discusses how channel strategy fits into a broader product-led motion.

Kill a channel when activated CAC exceeds your LTV/3 after a fair test (4-6 weeks with proper targeting and creative optimization). Also kill if the activation rate from a channel is significantly below your average, even if the raw CAC looks acceptable. Low-quality signups that never activate are more expensive than high-CAC users who convert.

SEO and content marketing should not be judged on a 6-week test. Give them a 6-12 month evaluation window. Track leading indicators during the first 6 months: indexed pages, ranking improvements, organic impression growth. If leading indicators are positive, continue investing. Judge CAC and ROI after month 9+. Include SEO in your long-term allocation even if short-term results are unclear.

It depends entirely on your LTV. The standard benchmark is CAC should be less than LTV/3, meaning you recover acquisition costs within your first third of the customer relationship. For a product with $150/month ACV and 18-month average lifetime (LTV = $2,700), your target CAC should be below $900. For an early-stage startup, aim for CAC payback within 6-12 months.

Yes, especially at the early stage when founder time is the primary resource. Value it at an opportunity cost rate ($100-200/hour is common). A "free" channel that takes 40 hours of founder time per month has a real cost of $4,000-8,000. Without accounting for time, you will systematically overvalue labor-intensive channels and undervalue paid channels that scale without founder attention. ---