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Why Metrics Get Worse With Scale

Seeing Both Sides

Conventional wisdom suggests that the most important metrics for a startup - such as unit economics, cost of acquisition, lifetime value, churn rates - typically get better with time. Churn rates are another metric that can get harder with scale. in 2009 to $11.80

Metrics 20
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How to Conduct a SaaS Funnel Audit

ConversionXL

A flowing sales funnel is crucial in any business, but even more so with SaaS businesses… Unlike other business models, revenue is generated over an extended period of time. LTV = ARPA * % Gross Margin / % MRR Churn Rate. Customer Acquisition Cost (CAC). Be sure to request emails early in your funnel.

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Crazy! 189 Answers To The Top Startup Questions On Your Mind

maplebutter.com

Written By Dan Martell on February 2nd, 2012 | Category: Hiring LeanStartup Marketing Metrics Startup Life | 6 Comments. I’m not afraid to pick up the phone, cold call someone, use LinkedIn to find someone who’s recently left a company that might be considered competitive and ask them for advise around the business model and marketplace.

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Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

You validated our business model and added huge value to our efforts. This is misleading because in a recurring revenue model, Customer A is much more valuable to the business (assuming typical churn rates) as they will likely generate $360,000 of revenue for the business with renewals over that same three year period.