Up and Running

JANUARY 24, 2014

Outline your business model. Your business model tells an investor how your idea will (or does) convert into being economically viable. The best way to show you how to communicate your business model is to show you an example of a good one. Your business model should answer the questions: What do you sell?

Sweat Equity 138

Sweat Equity Churn Rate Forecast Business Model 138

VC Cafe

NOVEMBER 2, 2019

One question that keeps coming up when speaking with early stage entrepreneurs when it comes to funding, is what metrics the company needs to hit to raise seed/series A/B etc: What’s a good conversion rate? Is my churn rate below the category average? Benchmarks are typically specific to stage/business model/geo.

B2C 141

B2C Technical Review Startup Retention 141

ConversionXL

FEBRUARY 7, 2014

Calculate Your Churn. ” The easiest metric for subscription software products to check is churn rate. . “On SaaS, target churn rate should be around 2% monthly churn. The way KISSmetrics does this is by calculating the churn-rate for each level of subscription plan. image source.

Software 93

Software Churn Rate eCommerce Flash 93

Guy Nirpaz

OCTOBER 25, 2011

This week, Jason Cohen wrote a very comprehensive blog on software-as-a-service churn: Deep Dive – Cancellation Rate in SaaS Business Models. Jason looks at many different definitions for the SaaS Cancellation Rate metric. Find out why most SaaS executives don’t measure Churn Rate!

Churn Rate 64

Churn Rate Metrics Conversion Business Model 64

Up and Running

APRIL 27, 2012

A more fundamental problem that entrepreneurs can control, however, is related to their understanding of the key revenue drivers of their businesses. They often focus on the things they like doing, or the things they are more comfortable with, to the detriment of their fledgling businesses. They are in build mode after all.

Metrics 68

Metrics Nigeria Ratchet Churn Rate 68

Occam's Razor

APRIL 8, 2013

You need to know what the most important aspect of your business is, and how you need to change it. It means you're relevant to the business, and if your trip around the cycle is successful, you'll have helped the organization get closer to its goals. If it's the number of people buying, the metric is conversion rate.

Metrics 156

Metrics Analytics Lean Churn Rate 156

ConversionXL

NOVEMBER 17, 2022

In thinking about the bigger goal of digital transformation, 46% say they have been able to identify and create new product and revenue streams, and 45% of organizations are now using data and analytics to develop new business models. The company once had the market’s highest churn rate and lowest Net Promoter Score (NPS).

Analytics 106

Analytics Metrics Channel Campaign 106

David Teten

DECEMBER 3, 2019

Technographics vendors such as Builtwith , Datanyze , HG Data , Stackshare, and Stacklist help CEOs identify the right tech platform on which to build their business; they’re also helpful for investors to due diligence a company’s tech stack choices. Lighter Capital, a Revenue Based Investing VC, offers a Cost of Capital Calculator.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

ConversionXL

AUGUST 12, 2016

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. Monthly Recurring Revenue (MRR). MRR is probably the most critical metric for any subscription business. Revenue Churn.

Software Review 48

Software Review Metrics Revenue Acquisition 48

ConversionXL

OCTOBER 30, 2019

Article after article, course after course, conference talk after conference talk addresses acquisition experimentation—getting more conversions at the top of the funnel. Exhibit A: This is the table of contents from the article that currently ranks first for the keyword “conversion rate optimization tips.” Reactivation.

Retention 101

Retention Metrics Churn Rate Acquisition 101

ConversionXL

OCTOBER 30, 2019

Article after article, course after course, conference talk after conference talk addresses acquisition experimentation—getting more conversions at the top of the funnel. Exhibit A: This is the table of contents from the article that currently ranks first for the keyword “conversion rate optimization tips.” Reactivation.

Retention 48

Retention Metrics Churn Rate Acquisition 48

maplebutter.com

JANUARY 8, 2013

I would focus on one product and set a goal to generate $1M in yearly revenue from it. Outsourcing is something a big company, with a known customer / problem (that has revenue & traction) does to save cost. I don’t have any formal business training and I actually think it’s served me well. Once you’ve done that – then.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

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

Up and Running

MARCH 11, 2015

Now you’re going to move into your revenue model. Okay, so now your revenue model, so this is—. I’m going to share what the metrics are for a SAS business, which is software as a service, and that’s what we are here at LivePlan, so these are the things that we track on a daily basis.

Technical Review 60

Technical Review Software Review Due Diligence Exit Strategy 60

ConversionXL

MARCH 5, 2014

From my experience, that’s because so many businesses focus on transactional customer value, and forget to invest in the experience that happens after the conversion. . It appears that LTV should be about 3 x CAC for a viable SaaS or other form of recurring revenue model. image source. image source. image source.

Customer 133

Customer Churn Rate Retention Acquisition 133