The Funnel Framework presents a new perspective on understanding the business dynamics of technology companies. The framework suggests envisioning businesses as a funnel, with the wide end representing potential customers and the narrow end symbolising the monetised customers. It argues that all businesses start with a wide funnel, with a large number of potential customers, which narrows down as customers are monetised.

The framework is divided into three sections: Attract, Retain, and Monetise. The Attract phase focuses on drawing in potential customers, usually through free offerings. The Retain phase emphasises keeping these customers engaged, often through regular updates or additional features. Lastly, the Monetise phase involves converting these customers into paying ones, typically through premium services or ads.

The Funnel Framework also highlights the importance of the order of these phases. It argues that the traditional order of Attract, Retain, Monetise is the most successful, as it allows businesses to build a solid customer base before attempting to monetise. The framework warns against reversing the order, as attempting to monetise too quickly can deter potential customers and narrow the funnel prematurely.

This model is particularly relevant to technology companies, which often start with free offerings to attract a large user base. The Funnel Framework provides a clear structure for these companies to follow, ensuring the successful growth and monetisation of their customer base.

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