The Original Pirate
In 2007, Dave McClure gave the startup world a gift: AARRR, affectionately known as "Pirate Metrics." The framework became the lingua franca of SaaS growth teams everywhere.
The Original Five:
- Acquisition — How do users find you?
- Activation — Do they have a good first experience?
- Retention — Do they come back?
- Revenue — Do they pay?
- Referral — Do they tell others?
It was elegant. Memorable. And fundamentally limited.
The original AARRR was designed for one context: tracking users through a software funnel. But as I've spent years helping businesses systematize their work—from solar installation companies to executive coaches—I realized something important.
The vocabulary was almost universally applicable. But it was missing a critical stage.
The Missing Stage
McClure's framework jumps from Activation to Retention. In SaaS terms, that made sense—you activated a user, then tracked whether they came back. But in actual work? In service delivery? In relationships?
There's an entire stage being glossed over.
That stage is Engagement—the ongoing interaction where value is actually created and delivered.
Think about it. A customer signs a contract. They have their kickoff meeting and understand what happens next. Then what?
In the original Pirate Metrics, we'd jump straight to "do they stick around?" But that ignores the heart of the work—the actual doing. The service delivery. The coaching sessions. The installation. The ongoing relationship before we ever get to retention.
The Admiral's Framework: AAERRR
Same framework, more experience, one crucial addition. The original Pirate Metrics were for startup buccaneers setting sail. The Admiral's Framework is for operators who've been around the horn a few times and learned something.
Why This Matters Beyond SaaS
The original Pirate Metrics were a growth hacking tool—a way to identify leaky buckets in your user funnel. Useful, but narrow.
AAERRR, as I've come to use it, is something different entirely: a vocabulary for describing the stages of any value stream.
This is where it connects to Deliberate Work.
When I talk about designing work that runs without you, about moving from heroic effort to systematic excellence, the first challenge is always the same: people don't have language for the work they're doing. Every project is described differently. Every handoff is improvised. Every status update requires three paragraphs of context.
AAERRR solves that problem.
The Vocabulary of Work
Consider how the framework applies to an executive coaching engagement:
| Stage | What's Happening |
|---|---|
| Acquisition | Coach and potential client discover each other |
| Activation | Discovery call, proposal accepted, agreement signed |
| Engagement | The actual coaching—sessions, exercises, accountability |
| Retention | Client renews, extends, or maintains relationship |
| Revenue | Payment flows—retainers, session fees, success bonuses |
| Referral | Client introduces coach to their network |
Or a solar installation:
| Stage | What's Happening |
|---|---|
| Acquisition | Homeowner requests a quote |
| Activation | Contract signed, project initiated |
| Engagement | Design, permitting, installation, inspection |
| Retention | Ongoing monitoring, maintenance relationship |
| Revenue | Initial payment, financing, incentives |
| Referral | Customer reviews, neighbor referrals |
The framework doesn't just describe user metrics—it describes the shape of work itself.
Atomic Vocabulary, Clear Boundaries
Here's what I've come to appreciate most about this framework: it creates precise language for what is often muddy.
When someone asks "what stage is this project in?" the answer shouldn't require three paragraphs of context. It should be a single word:
"We're in Activation—contract's signed, kickoff is Thursday."
"We're mid-Engagement—installation crew is on-site today."
"This is a Retention conversation—they're up for renewal."
That precision matters. It matters in handoffs. It matters in reporting. It matters in understanding where work gets stuck.
When work is poorly described, it's poorly managed. AAERRR gives teams a shared vocabulary that's:
- → Atomic — Each stage is distinct and non-overlapping
- → Sequential — They follow a natural progression
- → Universal — They apply across industries and contexts
The Deliberate Work Connection
This evolution is core to how I think about the transition from accidental to deliberate.
Accidental businesses don't have vocabulary for their stages. Every project is a snowflake, every handoff is an improvisation. The only way to know what's happening is to ask someone who's deep in it—usually you.
Deliberate businesses have clear delineations. This is where Activation ends and Engagement begins. This is who owns each stage. This is what "done" looks like.
AAERRR isn't just a growth framework anymore. It's a way of seeing work clearly.
And that clarity—knowing exactly where work is, what stage it's in, and what needs to happen next—is the first step from heroic effort to systematic excellence.
The extra "E" isn't just a letter.
It's the acknowledgment that value creation—the actual work—deserves a name.
Sources & Further Reading
- On the original Pirate Metrics: McClure, D. (2007). "Startup Metrics for Pirates: AARRR!" 500 Startups. The presentation that launched a thousand growth teams. Original blog post.
- On value stream thinking: Rother, M. & Shook, J. (1999). Learning to See: Value Stream Mapping. Lean Enterprise Institute. The foundational text on understanding how value flows through organizations.
- On clear vocabulary: Meadows, D. H. (2008). Thinking in Systems: A Primer. Chelsea Green Publishing. Demonstrates how the right language shapes how we see and manage complex systems.
- On the importance of the "Engagement" stage: Reichheld, F. F. (2003). "The One Number You Need to Grow." Harvard Business Review. Research showing that the quality of ongoing engagement predicts business outcomes better than acquisition metrics.