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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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Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

Perhaps the most misused terms I see these days from entrepreneurs involve CAC (customer acquisition costs) and LTV (life time value) and a lack of understanding these critical components is driving many companies to premature failure. CAC is often measured incorrectly and doesn’t often doesn’t capture the true costs of acquisition.

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Lessons Learned: The three drivers of growth for your business.

Startup Lessons Learned

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?)

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How to Choose Digital Marketing Channels for Long Term Growth

ConversionXL

Paid Acquisition. You’re undoubtedly familiar with paid acquisition, as it’s the digital equivalent of traditional advertising. This is generally split into two areas, though they’re often used together to some varying proportion: Search Engine Marketing. When Does Paid Acquisition Work for SaaS Startups?

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Stories of Opportunity from the First Round Capital Key Hire Wire – COO, VP of Business Development, Online Marketing Director

This is going to be BIG.

Our team includes 12 top-notch engineers from NVidia, Microsoft, Stanford, Berkeley and Cornell. On top of that throw in a bunch of web servers and SQL databases, cross-platform 3D graphics code and a highly scalable physics engine and you get the idea. We are also one of the stickiest sites on the internet.

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How to Use Growth Hacking to Increase Revenue 20x in Just 12 Months

Up and Running

Your customer acquisition cost and lifetime value are the two magical numbers you need to calculate for each one of your campaigns. Cost of Acquisition (CAC): The total cost of acquiring a user through a given channel. Using this approach, we’ve been able to identify a number of profitable customer acquisition channels for Slidebean.

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eCommerce: A VC Story [guest post]

VC Cafe

They are accustomed to more frictionless buying, easier payments, smarter recommendation engines, sharper display (product images, 3D, HD), short fulfillment time, and excellent customer service. Consolidation will persist to prove itself as companies like Amazon and eBay continue to make acquisitions (Zappos, Quidsi, Woot, BuyVIP, etc.).