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Zynga Founder Mark Pincus: Engagement Metrics Lie. Revenue Per User Tells the Truth.

By Mark Pincus · Product & Building · 1 min read

Pincus says startups obsess over DAU and MAU. He says those numbers hide the real story.

Key Points

High engagement does not mean high value — users can be active but not paying
Revenue per user is the only metric that tells you if the business works
Zynga learned this the hard way when engagement was high but monetization was not

Engagement without monetization is a hobby. Revenue per user is a business.

The Engagement Trap

Daily active users. Monthly active users. Time spent in app.

These numbers feel good. They go up. The board is happy.

Pincus says they hide the truth. Users can be active and still not be worth anything.

Revenue Per User

The only metric that matters: how much money does each user generate?

If that number is growing, you have a business. If it is flat or declining, you have a problem.

Zynga learned this when games had millions of active users but thin monetization.

Engagement without monetization is a hobby.

The Real Metric

Track revenue per user over time. Plot it by cohort.

If newer cohorts generate more revenue than older ones, you are improving.

If not, all the engagement in the world will not save you.