Appendix: Glossary
Quick reference for key terms used in this book. See the Framework Index for methodology details.
ACV (Annual Contract Value): For subscription or retainer deals: total value of a contract over one year. Used in B2B metrics and pipeline valuation. Ch 8.
AEO (Answer Engine Optimization): Optimizing content so AI systems (e.g., ChatGPT, Perplexity, Google AI Overviews) cite and recommend you when users ask relevant questions. Ch 14.
ARR (Annual Recurring Revenue): For subscription businesses: revenue from recurring contracts normalized to a yearly run rate. Key metric for SaaS and membership businesses. Ch 8.
BANT: Enterprise qualification framework: Budget, Authority, Need, Timeline. Referenced for context; this book uses MVQ for solo founders. Ch 4.
CAC (Customer Acquisition Cost): Total cost to acquire one customer (ads, tools, time). Used with LTV in the LTV:CAC ratio. Ch 8.
Churn: Customers or revenue lost when subscriptions cancel or one-off clients don't return. Lower churn improves LTV and NRR. Ch 6, 8.
Cold email: Unsolicited outreach to prospects who don't know you, used for lead generation. Effective when targeted (ICP) and personalized. Ch 3, 6.
Conversion rate: Percentage of prospects who become customers (e.g. discovery calls that close). A key metric for pipeline health. Ch 8.
Diagnostic Discovery: Treating discovery calls as diagnosis (understanding the problem) rather than interrogation or pitch. "Prescription before diagnosis is malpractice." Ch 4.
DISC: Behavioral framework for buyer communication styles: Dominant (D), Influence (I), Steadiness (S), Conscientiousness (C). Used to adapt discovery and presentation. Ch 4.
Discovery call: A structured conversation to understand the prospect's situation, problem, impact, and fit before proposing a solution or price. Ch 4.
ICP (Ideal Customer Profile): The intersection of people you can help, who will pay, and who are a joy to work with. Defines who you target and who you don't. Ch 2.
LTV (Lifetime Value): Total revenue you expect from one customer over the relationship. Used with CAC in the LTV:CAC ratio. Ch 8.
LTV:CAC: Lifetime Value to Customer Acquisition Cost ratio. Measures efficiency of acquisition; sustainable growth typically needs 3:1 or higher. Ch 8.
MEDDIC: Enterprise qualification framework (Metrics, Economic buyer, Decision criteria, Decision process, Identify pain, Champion). Referenced; this book uses MVQ for solo founders. Ch 4.
MRR (Monthly Recurring Revenue): For subscription businesses: revenue from recurring contracts normalized to a monthly run rate. Often used for early-stage and solo-founder metrics. Ch 8, 10.
MVQ (Minimum Viable Qualification): Three-pillar qualification for solo founders: Pain (specific problem), Impact (cost of not solving), Decision (can they buy?). Ch 4.
NPS (Net Promoter Score): Customer loyalty metric: percentage of promoters (would recommend) minus percentage of detractors (would not). Optional for solo founders; useful for retention feedback. Ch 6.
NRR (Net Revenue Retention): For subscription businesses: percentage of revenue retained from existing customers (renewals + expansion minus churn). Ch 6, 8.
Objection handling: Responding to concerns (price, timing, authority) in a way that preserves trust and moves the conversation forward. Ch 9.
One-page playbook: A single-page summary of your acquisition system: ICP, channel, metrics, and weekly rhythm. Ch 10, 13.
Pipeline: Prospects in progress from first contact to close. Pipeline value and stage conversion are core metrics. Ch 8.
Playbook: A repeatable set of steps for a specific situation (e.g. zero customers, $10K MRR, scaling). Ch 10.
Prescription Frame: Presenting your solution as a prescription: recap the diagnosis, connect solution to their words, state outcome, then price and next steps. Ch 5.
Proof Ladder: Progression of social proof: activity proof → association → micro-testimonials → results documentation. Ch 15.
Qualification: Determining whether a prospect has the right problem, impact, and ability to buy (MVQ) before investing time in a full proposal. Ch 4.
Retention Flywheel: System where great product → happy customers → testimonials & proof → better leads → ideal fit → product improvements, compounding over time. Ch 6.
Revenue Rhythm: Recurring cadence (daily, weekly, monthly) for sales activities so execution doesn't depend on motivation. Ch 12.
ROI (Return on Investment): Benefit from an investment (e.g. acquisition spend or time) divided by cost. Used to compare channels and justify pricing. Ch 5, 8.
Sales Navigator: LinkedIn's premium tool for finding and contacting prospects (search, InMail, lead lists). Referenced for B2B outreach. Ch 2, 3.
Sandler Method: Sales methodology that emphasizes "prescription before diagnosis is malpractice"; this book's diagnostic discovery approach is aligned. Ch 4.
70/30 rule: In discovery, the prospect talks ~70% of the time and you ~30%, so you learn instead of pitch. Ch 4.
TCO (Total Cost of Ownership): Full cost a customer incurs to adopt and use a solution (price plus implementation, training, switching). Sometimes used in value anchoring. Ch 5.
Value anchoring: Connecting price to value in the same breath so the number isn't left hanging; e.g. anchoring to cost of inaction. Ch 5.