Appendix: Glossary
Quick reference for key terms used in this book. See the Framework Index for methodology details.
Activation event: The specific, observable in-product behavior that reliably predicts a new customer will stick around and get value, measured as the share of new accounts that reach it within a set window. Ch 19.
ACV (Annual Contract Value): For subscription or retainer deals, the total value of a contract over one year. Used in B2B metrics and pipeline valuation. Ch 8, 16, 17.
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 20, 21.
BANT: Enterprise qualification framework: Budget, Authority, Need, Timeline. Referenced for context; this book uses MVQ for solo founders. Ch 2, 4.
CAC (Customer Acquisition Cost): Total cost to acquire one customer (ads, tools, time). Used with LTV in the LTV:CAC ratio. Ch 8.
CAC payback: How many months of a customer's gross-margin revenue it takes to recover what you spent to acquire them. Healthy targets depend on your motion. Ch 8, 16, 18, 20.
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, 7, 8.
Constraint Triangle: The three non-negotiable limits every tactic in this book is designed around: budget, time, and lean headcount. Introduction; Ch 11, 16-19.
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. As Tony Alessandra put it, "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, people who will pay, and people 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: Ratio of lifetime value to customer acquisition cost. Measures acquisition efficiency; 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 18.
NRR (Net Revenue Retention): For subscription businesses, the 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 System: A single-page summary of your acquisition system: ICP, channel, metrics, and weekly rhythm. Ch 13.
Pipeline: Prospects in progress from first contact to close. Pipeline value and stage conversion are core metrics. Ch 8, 20.
Pipeline coverage: Your pipeline for a period divided by your target for that period. For new logos, 3-5x is healthy, and outbound or lower-win motions want 4-6x. Ch 20.
Playbook: A repeatable set of steps for a specific situation (e.g., zero customers, $10K MRR, scaling). Ch 10.
PLG (Product-Led Growth): A go-to-market motion where the product itself drives acquisition, activation, and conversion, so buyers find, try, and buy without a salesperson. Best suited to low ACV. Ch 16-19.
Prescription Frame: Presenting your solution as a prescription: recap the diagnosis, connect the solution to their words, state the outcome, then give the 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.
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 4, 5.
Sales Navigator: LinkedIn's premium tool for finding and contacting prospects (search, InMail, lead lists). Referenced for B2B outreach. Ch 2, 3, 7.
Sales-led motion: A go-to-market motion where people (the founder first, then account executives) find, qualify, and close deals. Fits higher ACV and multi-stakeholder buying. Ch 16-19.
Sandler Method: Sales methodology built around qualifying, and disqualifying, early; this book's diagnostic discovery approach aligns with it. Ch 2.
70/30 rule: In discovery, the prospect talks ~70% of the time and you ~30%, so you learn instead of pitching. Ch 4.
Sustainable Rhythm: Recurring cadence (daily, weekly, monthly) for sales activities so execution doesn't depend on motivation. Ch 12.
Time-to-value (TTV): The elapsed time from signup or contract to the moment a customer first sees the core value in their own context. Shorter TTV correlates with higher retention. Ch 16, 19.
Value anchoring: Connecting price to value in the same breath so the number isn't left hanging, for example by anchoring to the cost of inaction. Ch 5.