While revenue is often the best primary metric, some startups may focus on active users, especially if building a large audience is a prerequisite for monetization.

Real startup progress is defined by tasks that genuinely move the needle, such as growing your primary key performance indicator (KPI), which is typically either revenue or active users.

If your startup has strong network effects, focusing on active users may be more important initially, with revenue becoming a focus later on. It's crucial to define what 'users' means for your startup, as it can vary significantly. For example, having 100 users could mean they just signed up or that they actively engage with your product daily for about 10 minutes. The latter is a much more valuable metric.

The primary metric should be a lagging indicator of success, reflecting real value delivered, like revenue from customers who have already paid for your product.

If you're in a regulated industry and can't sell your product yet, your primary metric should focus on demonstrating technical feasibility rather than quantitative sales figures.

Your primary metric must capture whether your product provides recurring or enduring value to users, such as monthly recurring revenue for SaaS tools.

A good primary metric should quantify the value you're delivering to your customers, indicating how much they want your product, with revenue being the best metric.

Your primary metric should also be usable as a feedback mechanism, helping you prioritize strategies and make quick decisions in your startup.

Track a key performance indicator (KPI) that reflects your company's success; for most, this should be revenue or user engagement.