From Growth is a Commodity by Charlie O’Donnell:
If there’s one thing we’ve basically figured out in the digital world, it’s marketing. It’s table stakes. You spend some dollars to get more dollars out. It’s not complicated.
That’s why I care much more about engagement–do people like what you built, versus whether or not more people used it today than they did yesterday. Plus, the startup world is littered with companies that grew exponentially without becoming successful–Fab, Turntable, Dailybooth, etc.
If people engage regularly with your product, but you can’t get more people to use it, you’ve got a marketing problem. Marketing problems, for the most part, are solvable by a very distinct set of best practices.
On the other hand, if people are coming, but they’re not engaging, you’ve got a product problem. Sometimes, it’s easily fixible. Other times, you’re just so way off on product/market fit that you’ve fallen into “bad idea” territory, and there’s really no timetable for fixing a bad idea.