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Startup Killer: the Cost of Customer Acquisition | For Entrepreneurs

www.forentrepreneurs.com

Blog About Log in Register Startup Killer: the Cost of Customer Acquisition In the many thousands of articles advising entrepreneurs on what they have to focus on to build successful startups, much has been written about three key factors: team, product and market, with particular focus on the importance of product/market fit.

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Scaling Sales: From Craft to Machine

Seeing Both Sides

B2C sales and customer acquisition efforts are a different matter (and one I''ll perhaps address in a future blog), but for B2B, those three models are the most common pattern. If you want to scale sales, you hire more sales reps. customer acquisition cost or CAC). I''ll discuss each one below. 1) Enterprise Sales.

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Personalization: How to Build a Revenue Boosting Program from Scratch

ConversionXL

Acquisition segments. Acquisition segments. For some products, customers come in all shapes and sizes, from all countries, all backgrounds, all salaries, and all levels of computer skills. In these cases, it’s best to get an intimate understanding of the job itself, what creates demand for it, and what you’d hire to do the job.

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The Venture Capital Secret: 3 Out of 4 Start-Ups Fail

online.wsj.com

"When youve bootstrapped a business where youre not drawing a salary and depleting whatever savings you have, thats one of the very difficult things to do," says Toby Stuart, a professor at the Haas School of Business at the University of California, Berkeley. In early 2011 an acquisition by a Fortune 500 company fell apart.

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

Cracking the Code

Only after reaching $1M in CMRR should you consider hiring European sales and services execs behind customer demand. The CLTV is the net present value of the recurring profit streams of a given customer less the acquisition cost. Cashflow is the other key metric. Philippe Botteri. Bessemer SaaS Law #2. So how should you use this ratio?

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How to Optimize an Affiliate Marketing Program for Profitability

ConversionXL

Instead of a salary, you pay them for each new lead or sale acquired as a result of their marketing efforts. Are you aware of your cost per acquisition on other channels? According to the benchmark report, most affiliates work in the B2C space (79.45%). Some people confuse affiliate marketing with referral marketing.

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Differentiation Strategy (and the Sea of Sameness)

ConversionXL

Odds are, you’ll eventually need to move upmarket as you need margins to fuel your growth and hire better people. Byron Sharp and the Ehrenberg-Bass Institute have criticized differentiation, arguing that its role in the B2C setting is less important. Most companies focus on customer acquisition, not providing the best experience.