Both Sides of the Table
APRIL 26, 2016
The reality of CAC is both the when you scale your acquisition “channel” costs usually go up plus when you find a great channel others notice it and drive up the costs as they compete with you in that channel. So if you paid $100 for a customer who converted via a Facebook ad or Google search ad (SEM) that is not your CAC.
Startup Lessons Learned
SEPTEMBER 22, 2008
The law of large numbers (of customers) says you cant help but make at least some money - your valuation is determined by how well you monetize the tidal wave of growth. In this model, you take some fraction of the lifetime value of each customer and plow that back into paid acquisition through SEM, banner ads, PR, affiliates, etc.
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Cracking the Code
NOVEMBER 10, 2009
Forget everything you learned about software channels. The internet is your new channel and Technology Enabled Service providers are among the few partners that actually care if you succeed (more.) Your caution in Law 6 about over-estimating the impact of SEM and other lead-generation activity is particularly astute.
www.forentrepreneurs.com
FEBRUARY 2, 2010
Far more common is a need to acquire customers through a series of steps like SEO, SEM, PR, Social Marketing, direct sales, channel sales, etc. Extensive use of software to automate all processes such as SEO, SEM, social networking, lead scoring, lead nurturing, CRM, etc. that will cost the company significant amounts of money.
Cracking the Code
OCTOBER 10, 2008
Channel relationships are very hard for any small company to establish even when interests are directly aligned, but this challenge is proving even more difficult for most SaaS companies given the restricted value proposition to the SI and ISV community. Philippe Botteri. Bessemer SaaS Law #5. Bessemer SaaS Law #6.
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