#9 The GEM Model

Prioritizing growth, engagement, and monetization to keep organizations aligned.

That’s me, explaining the GEM model at our Product Leader Summit in 2018, using Chegg as an example.

GEM Prioritization

  • Monetization: As measured by Lifetime Value (LTV) and gross margin.
  • Engagement: As measured by monthly retention. (Think of this as a proxy for product quality.)
  • Growth: As measured by the year-over-year member growth rate. (30% in 2005.)
  • Growth
  • Engagement
  • Monetization

Product Strategy Exercise (#11)

Thinking about the overall needs of your company, how do you prioritize growth, engagement, and monetization? Which metric will you use to measure each? Now compare notes with your CEO and leaders in other functions to see how they prioritize the three factors. If the answer is different, find ways to debate the prioritization and reach an agreement. Doing this every six months will dramatically improve cross-functional alignment.

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