Editor’s Note: This post was originally published on Seattle 2.0, and imported to GeekWire as part of our acquisition of Seattle 2.0 and its archival content. For more background, see this post.

By David Aronchick

The biggest problem with building anonline business today is that you can measure too much, and the vastmajority of it doesn’t mean anything. I promise you, no matter howyour graphs look like they’re spiking, or how they’re all going upand to the right, unless you’re in the graph business, it will not bethe reason your business survives or fails. Coincidentally, JoelSpolsky postedabout a great talk at the Business of Software 2009 by KathySierra with a great slide that covered this very point.
 

 

The current crop of startup measurementtools is, sadly, focused on the traffic elements as well –Quantcast, Compete, Alexa, it’s all about measuring how many peopleyou have coming to your site. There are a thousand of other startupsout there trying to do measurements at a deeper level, but they allstart with this totally useless stat. I don’t envy these analyticscompanies – they must spend hundreds of thousands of man hoursgetting the numbers right, but at the end of the day, they don’tprovide any core value to the business.

Why am I so down on traffic as astatistic? Let me ask a follow up question: who’s in the lead? The50 person company with 10 M UV or the 2 person company with 50k UV?Did I mention the 2 person company has 45k paying customers, and the10 M UV company has 1k? You might as well ask who’s a bettercompany, the people who use Comic Sans for their default font, or thepeople who have offices in brick buildings. The problem that’s notobvious in the first sentence, that’s totally obvious in the secondis that you’re measuring the wrong thing, and even worse it’s anincredible distraction.

Why do people all gravitate to thesestats? First, the popularity contest element is hard to ignore. Thethought that you’ve touched several thousand people in aday/week/month – there is a real power to that. Second, it’s theshortest and easiest path to revenue. You throw the AdSense code onthere and in 20 minutes, you’ve made $5. Of course, it almost neverturns into enough to keep your business going – it’s just enough tomake you THINK it’s going to happen. Third, because most of thesestats have some public component, it does lend itself to a comparisonagainst your competitors; these can be the most public display of howyou’re doing versus anyone else. But you’ve got to fight the urge –it’s a waste of time. You’re looking where the light is, not whereyour keys are.
 

 

What’s the alternative? You’ve got towork backwards – rather than focusing on where the action is –keep your eye on your business. What will keep your company going foranother month, what is it going to take to expand, where are youweakest, what do you need to focus your team on? Traffic will go upand down – and paying attention to it at all will just distract youfrom what really matters. It may not be sexy to study your salespipeline, or your product schedule, but it’s the health of thebusiness.

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