Analyze · Cohort & Channel ROI

Identify Compounding ROI Channels

Separate channels whose ROI compounds over time (SEO, content, partnerships) from channels that flatline, and reallocate accordingly.

foundermanagerAdvanced4-5 hours
When to use
Use yearly or after big team-shape decisions (hire a content lead? a partnerships lead?). Reveals which channels have asset accumulation effects vs which require constant cash to stay alive.
The prompt
You are a growth analyst for a digital marketing agency analyzing the agency's own GTM ROI. You separate compounding channels (whose ROI improves over time) from steady-state channels (whose ROI flatlines).
Agency: [AGENCY_NAME] — [SERVICES] | Period: [PERIOD] (minimum 4 quarters) | Data:
[CHANNEL_TIMESERIES] (per channel, per quarter: spend or labor-cost, leads, CW, avg MRR, ROI)
Plot ROI per channel quarter-over-quarter. Classify each channel as Compounding (ROI rises ≥10% Q/Q for 3+ quarters), Steady (within ±10%), or Decaying (drops 10%+ Q/Q). Recommend reallocating budget toward compounding channels.

- Show calculation: ROI(Q) = First-Year Rev(Q) / Cost(Q); Q/Q growth = (ROI_Q - ROI_Q-1) / ROI_Q-1
- Require ≥4 quarters of data per channel; flag shorter histories as "insufficient — track another 2 quarters"
- Identify the asset-accumulation mechanism behind each compounding channel (content stockpile, backlink growth, partner network, brand mentions)
- Recommend a 12-month reallocation that shifts ≥20% of budget to compounding channels

1) Channel classification table (channel, ROI Q1-Q4, classification, asset mechanism). 2) Compounders vs Steady vs Decaying summary. 3) 12-month reallocation plan with target % per channel.
Variables
  • [AGENCY_NAME] — Your agency name
  • [SERVICES] — Services sold
  • [PERIOD] — Minimum 4-quarter window
  • [CHANNEL_TIMESERIES] — Quarterly per-channel spend, CW, MRR, ROI
Example input
Agency: Anchor Growth — SEO + lifecycle email | Period: Q2 2025 - Q1 2026 | Data:
Channel | Q2'25 ROI | Q3'25 | Q4'25 | Q1'26
SEO content | 3.2x | 4.6x | 6.1x | 8.4x
LinkedIn personal brand | 5.0x | 6.8x | 8.2x | 9.5x
Google Ads | 12.0x | 11.8x | 12.4x | 11.5x
LinkedIn Ads | 9.0x | 8.1x | 7.4x | 6.0x
Partner co-marketing | 2.1x | 3.0x | 4.4x | 5.8x
Cold email | 14.5x | 13.0x | 8.2x | 5.1x
Example output
Classification:
SEO content: 3.2 → 8.4x | Compounding | Asset: stockpile of ranked pages
LinkedIn personal brand: 5.0 → 9.5x | Compounding | Asset: follower base + content library
Partner co-marketing: 2.1 → 5.8x | Compounding | Asset: partner network density
Google Ads: 12.0 → 11.5x | Steady | Pure cash-in / leads-out
LinkedIn Ads: 9.0 → 6.0x | Decaying | Audience saturation
Cold email: 14.5 → 5.1x | Decaying | Domain reputation + list fatigue

Summary: 3 compounding (SEO, LinkedIn organic, partnerships), 1 steady (Google Ads), 2 decaying (LinkedIn Ads, Cold email).

12-month reallocation:
- Compounding bucket: 55% of total GTM investment (up from ~30%) — hire content + partnerships lead
- Steady bucket (Google Ads): 25% — protect, don't grow past CAC ceiling
- Decaying bucket: 10% — milk LinkedIn Ads while you can, fully sunset cold email by end of Q3
- New channel test stake: 10%
Pro tips
  • Compounding channels look slow at first — judge them on Q/Q ROI growth, not absolute ROI in any single quarter.
  • A compounding channel usually has an asset (content, backlinks, network) — if you can't name the asset, it's probably not actually compounding.
  • Cold email and paid social almost always decay over 12-18 months — plan replacements before ROI drops below break-even.
Works with
ClaudeChatGPTGemini
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