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Why Making Something Customers Want Isn’t Enough

Software By Rob

If you can convert 1% of your visitors to customers this means you need 100 clicks for each purchase, making your cost per acquisition (CPA) $400. your CPA jumps to $800. If you own an application with a recurring pricing model, you need to know your price point and churn rate for each of your plans in order to calculate your LTV.

CPA 73
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How to create a profitable Freemium startup (spreadsheet model included!)

andrewchenblog.com

CPM/CPA/CPC) What do the intermediate metrics look like? Basically, you end up with a media buying matrix that looks something like this: Source Ads bought CTR Clicks Signup % Upload pic Users Cost CPA Google 1M 0.50% 5,000 20% 50% 500 $5,000.00 $10.00 At worse, it’s easy to lose a ton of money, if the CPA exceeds the LTV.

CPA 51