Meet the AARRR framework, affectionately known as ‘Pirate Metrics’. Coined by venture capitalist Dave McClure (2007), it’s a beautifully simple, five-stage model that helps you understand what the blazes is actually happening with your students. Think of it less as a stuffy business school model and more as a treasure map to sustainable growth.
Stop patching the holes in your leaky boat and start figuring out why it’s leaking in the first place.
(A)cquisition: Getting a stranger's attention
This is the top of your funnel, where strangers become aware that your course exists. It’s about being discoverable. You could have the best course in the world, but if nobody knows about it, you’re just shouting into the void. Acquisition covers all the channels that lure unsuspecting learners to your sales page or, more often, a lead magnet.
So, what’s a lead magnet? Think of it as an ethical bribe. It's a free, valuable piece of content that you offer to potential students in exchange for their email address. The goal isn't just to collect emails; it's to 'acquire a lead'—someone who has raised their hand to say, 'I'm interested in this topic', but isn't ready to buy your full course yet.
A good lead magnet solves a specific, nagging problem for your ideal student and gives them a quick win, acting as a small taste of the value you provide in your main course.
By capturing their email, you get permission to build a relationship. As Self-Determination Theory suggests, learners are far more likely to engage with something they feel they've discovered themselves (Ryan & Deci, 2000), and a lead magnet is the first step in that voluntary journey.
Actionable tips
Be discoverable with content: Don't wait for students to find you. Go where they are. Write SEO-optimised blog posts that answer their burning questions, be a guest on podcasts they listen to, or collaborate with other creators they follow on social media. This builds authority and creates organic pathways to your course.
Use an irresistible lead magnet: Offer a high-value freebie like a downloadable PDF checklist, a handy template, a pre-recorded webinar, or an interactive quiz. This gets interested people onto your email list so you can use nurturing communications—a sequence of valuable, trust-building emails—to stay top-of-mind and guide them toward enrolment.
Experiment with paid ads: Organic growth takes time. To get immediate traffic, experiment with a small budget on targeted ads. Platforms like Facebook, Instagram, or Google allow you to get hyper-specific about who sees your ad, putting your course directly in front of your ideal students while you build your long-term organic strategy.
(A)ctivation: The 'Aha!' moment
Getting someone to your sales page is one thing; getting them to successfully enrol and start learning is another. Activation is the journey from interested prospect to paid student. This includes the enrolment process itself—a clunky, confusing checkout is a guaranteed way to lose a sale.
A huge part of this confusion comes from overwhelming buyers with too many options. This sales-killing phenomenon is called choice paralysis.
The classic 'jam study' proved this: a stall with 24 jam options made fewer sales than a stall with only 6 (Iyengar & Lepper, 2000). When a student sees options for bundles, subscriptions, different tiers, and payment plans all at once, their brain short-circuits. They simply close the window to get rid of the problem.
But getting them through the checkout is only half the battle. Activation isn't truly complete until after the credit card is charged. It culminates in the post-purchase 'Aha!' moment, when a new student grasps the value of your course, their buyer's remorse evaporates, and they think, 'Okay, I can do this. This was a good decision.'
This isn't just good pedagogy; it's good psychology. People place more value on things they feel they have a stake in, a cognitive bias known as the 'endowment effect' (Kahneman, Knetsch, & Thaler, 1991). A smooth, welcoming start that delivers an immediate confidence boost helps create a sense of ownership over their learning journey.
Actionable tips
Simplify the enrolment process: Make buying from you a breeze. Remove unnecessary form fields, offer multiple payment options (like PayPal or Google Pay), and use trust signals like testimonials and security badges on your checkout page. Every bit of friction you remove is a potential sale saved.
Curb choice paralysis: The sweet spot is two to three clear options. Think 'Good, Better, Best' (e.g., Self-Study, Community, VIP). Guide the decision by highlighting one as the 'Most Popular' to make the choice easy. If you have wildly different products (a R900 short course vs. a R30,000 programme), give them their own separate sales pages.
Engineer the 'Aha!' moment: Your welcome module is prime real estate. Don't just dump a 40-minute theory video on them. Give them a small, quick win immediately. Provide a template they can use in five minutes, teach them a powerful mindset shift, or guide them through a simple exercise that delivers a tangible result and validates their purchase.
(R)etention: Keeping students engaged
Here's a fun fact that should keep you up at night: enrolling a new student is anywhere from 5 to 25 times more expensive than keeping an existing one (Gallo, 2014).
Retention is about delivering the transformation you promised. A student who doesn't finish your course won't get results, won't leave a good review, and certainly won't refer anyone or enrol in another of your courses themselves.
Your goal is to create and maintain 'course momentum', making the learning experience so engaging that students are pulled forward.
Actionable tips
Foster community and personal connection: Don't just sell videos; create a sense of belonging. Build a thriving community and engage in it with proactive discussion prompts and live Q&As. Supplement this with personal communication, like automated check-in emails or even quick, personalised video messages to make students feel seen.
Gamify the learning experience: This taps into our intrinsic need for achievement. Go beyond a simple progress bar. Drip-feed your content weekly to prevent overwhelm and build anticipation. Unlock a surprise bonus video after a tough module is completed. Use completion badges to create a 'collection' mentality that encourages students to finish every module.
Extend the learning journey: Don't let the end of your course be a dead end. The ultimate form of retention is keeping a customer in your ecosystem. In your final module, tease the next logical course they could take. Offer a special 'alumni discount' to students who complete the course, making the next step in their journey an easy and rewarding decision.
(R)eferral: Turning students into fans
Referrals are the ultimate sign that you've delivered on your promise. This is where your marketing funnel evolves into a 'growth loop', where your best students become your best salespeople.
A strong referral system isn't just a tactic; it's the natural outcome of doing Retention well. A happy, successful student is the most credible and effective marketing asset you will ever have.
As studies on word-of-mouth marketing show, a recommendation from a trusted peer is far more powerful than any ad you can run (Trusov, Bucklin, & Pauwels, 2009).
Actionable tips
Ask for referrals at peak enthusiasm: Timing is everything. The perfect moment to ask is when a student shares a big win in the community, tags you on social media with their success, or sends you a gushing thank-you email. Capitalise on that peak emotion by asking, 'That's amazing to hear! I'm so glad you got that result. By any chance, do you know anyone else who might benefit from this course?'.
Make sharing easy and financially worthwhile: Create a formal affiliate program that's easy to join. Provide your affiliates with their unique link, plus pre-written email copy and social media posts they can use. Choose an incentive that truly motivates. For example, a flat cash payout per sale is often more compelling than a small percentage or a discount on a future product.
Systemise social proof: Actively encourage and collect testimonials. At the end of your course, direct students to a simple form where they can leave a review. Encourage them to share their certificate or a key takeaway on social media by creating a custom hashtag. Then, showcase these testimonials everywhere.
(R)evenue: Getting paid
Finally, the part that keeps the lights on. Revenue isn't a grubby necessity; it's the fuel for your impact. The money you make validates that you are providing real value, and it allows you to improve your course, reach more students, and dedicate more time to serving your community.
The ultimate goal isn't a single sale, but to increase the Lifetime Customer Value (LCV) by creating a journey for your students.
As research shows, a consumer's willingness to pay is a direct trade-off between the benefits they perceive and the cost they incur (Zeithaml, 1988).
Actionable tips
Price on value, not on length: Don't price your course based on the number of hours of video. Price it based on the value of the outcome or transformation you provide. What is solving this problem or achieving this goal worth to your ideal student? Is it a new job, a saved relationship, a profitable business? That's your anchor.
Offer tiers and payment plans: You can capture a wider range of customers by offering pricing tiers (e.g., a basic self-study version, a mid-tier with community access, and a premium tier with 1-on-1 coaching). Always offer payment plans; they make your course more accessible and can dramatically increase conversion rates.
Plan for the next sale: What is the next logical step for a student who completes your course? Plan for this. You can offer a higher-ticket programme or coaching as an upsell to existing students, or a smaller, related course as a cross-sell. This creates a customer journey, not just a one-time transaction.
Closing thoughts
The AARRR funnel won't magically solve all your problems. But it will give you a clear, honest look at your course and force you to answer the hard questions. Stop bailing water out of a sinking ship and build a vessel that’s actually seaworthy!
Iyengar, S. S., & Lepper, M. R. (2000). When choice is demotivating: Can one desire too much of a good thing?. Journal of Personality and Social Psychology, 79(6), 995–1006. https://doi.org/10.1037/0022-3514.79.6.995
Kahneman, D., Knetsch, J. L., & Thaler, R. H. (1991). Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias. Journal of Economic Perspectives, 5(1), 193–206. https://doi.org/10.1257/jep.5.1.193
McClure, D. (2007, August 2). Startup Metrics for Pirates: AARRR! [Blog post]. 500 Hats. Original site has closed down but you can watch the video version here: https://www.youtube.com/watch?v=irjgfW0BIrw
Ryan, R. M., & Deci, E. L. (2000). Self-Determination Theory and the Facilitation of Intrinsic Motivation, Social Development, and Well-Being. American Psychologist, 55(1), 68–78.https://doi.org/10.1037/0003-066X.55.1.68
Trusov, M., Bucklin, R. E., & Pauwels, K. (2009). Effects of Word-of-Mouth Versus Traditional Marketing: Findings from an Internet Social Networking Site. Journal of Marketing, 73(5), 90–102. https://doi.org/10.1509/jmkg.73.5.90
Zeithaml, V. A. (1988). Consumer Perceptions of Price, Quality, and Value: A Means-End Model and Synthesis of Evidence. Journal of Marketing, 52(3), 2–22. https://doi.org/10.1177/002224298805200302
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