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Fermi estimation for startup business models

A Smart Bear: Startups and Marketing for Geeks

and 5%” or “cost to acquire a customer between $50 and $500″ or “average monthly revenue per customer between $20 and $200.” So they’ll need 1666 customers to achieve their revenue target. (We ” Estimating with these extremely wide ranges can be surprisingly useful.

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The #1 thing successful founders think about for their next startups

Hippoland

Diving in a bit more into some thoughts here: 1b) Ad-based revenue streams generally have terrible unit economics. A typical ad-based revenue stream on a media website is around $5 per 1000 eyeballs ($5m CPM and give or take $1-$20ish CPMs). For example, if you are running affiliate ads for hotels, you might get 3-5% on a sale.

Founder 48
article thumbnail

The #1 thing successful founders think about for their next startups

Hippoland

Diving in a bit more into some thoughts here: 1b) Ad-based revenue streams generally have terrible unit economics. A typical ad-based revenue stream on a media website is around $5 per 1000 eyeballs ($5m CPM and give or take $1-$20ish CPMs). For example, if you are running affiliate ads for hotels, you might get 3-5% on a sale.

Founder 48