Startup Lessons Learned

SEPTEMBER 22, 2008

is an elegant way to model any service-oriented business: Acquisition Activation Retention Referral Revenue We used a very similar scheme at IMVU, although we werent lucky enough to have started with this framework, and so had to derive a lot of it ourselves via trial and error. The AARRR model (hence pirates, get it?)

San Francisco 167

San Francisco CPA SEM CTO Hire 167

venturedig.com

NOVEMBER 1, 2009

In social networking, they’re ever-changing, backed by eye-opening revenue and have very little documentation. The two major forms of this are CPC (cost per click) and CPA (cost per action or acquisition). Total Estimated Revenue For Year: $200 million. Total Estimated Revenue For Year: $75 million.

Social Network 55

Social Network Business Model Networking CPA 55

Occam's Razor

SEPTEMBER 24, 2012

Increased investment in Facebook as an engagement/acquisition channel has translated into requests from CEOs, CMOs and other CxOs about the return on that investment. A good business analyst will measure how many clicks came through from Facebook, and she/he will also measure the conversion rate, revenue, etc., from those clicks.

Metrics 165

Metrics Advertising Marketing Social Media 165

crowdSPRING Blog

JUNE 26, 2011

This is where the subjects of revenue enhancement and customer lifetime value arise. But once you have been successful at converting healthy percentages of your traffic , it is essential that you turn your focus to supplementing revenue, increasing shopping cart value, and maximizing the lifetime value of your new customers.

CPA 69

CPA Analytics Viral Small Business 69

Startup Lessons Learned

DECEMBER 14, 2009

In a previous post , I covered the three main drivers of growth: Paid, Sticky, and Viral. A business that strives for something like this should absolutely be charging money from day one, in order to establish baselines for their two key metrics: CPA (the cost to acquire a new customer) and LTV (the lifetime value of each acquired customer).

Customer 156

Customer San Francisco Viral Lean 156

andrewchenblog.com

JANUARY 28, 2010

To become profitable using a freemium business model, this simple equation must hold true: Lifetime value > Cost per acquisition + Cost of service (paying & free) Said in plain english, the lifetime value of your paying customers needs to be greater than the cost it took to acquire them, plus, the cost servicing all users (free or paying).

CPA 51

CPA Retention Viral Acquisition 51

Occam's Razor

MARCH 25, 2014

In earlier posts on this blog, I've simply defined the journey as Acquisition, Behavior and Outcomes. Do the customer and the company both end up with a win-win (they get joy and task completion, we get some current revenue and possibly a long term repeat customer)? For mobile Acquisition, our critical few metrics stay the same.

Metrics 155

Metrics Marketing Analytics Channel 155