Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.
Cracking the Code
OCTOBER 10, 2008
The CLTV is the net present value of the recurring profit streams of a given customer less the acquisition cost. For sales, they should be paid on new CMRR with a standard deal structure (such as a one year deal, with quarterly pre-payments), and incentives for more favorable cash flow terms (such as multi-year pre-payments).
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