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

Startup Lessons Learned

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. The spread between your LTV and blended CPA determines either your profitability or your rate of growth, and a high valuation depends on balancing these two factors.

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The Most Misunderstood Facts About Building a Business on YouTube

Both Sides of the Table

YouTube takes too high of a revenue split (45% vs. 30% that Apple and many other distribution companies take – FWIW, YouTube argues this is because their costs are much higher since they host and stream the video). But you don’t need to spend money on SEM. YouTube is a distribution and marketing channel like any other.

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Advertising Wants to be Measurable – An Investment Thesis

Both Sides of the Table

By now we all know that the largest part of the online spend has been SEM (search engine marketing) where people buy CPC (cost per click) links to display alongside the “organic&# search results in the search engine. This form of advertising is know at CPA (cost per action). The CTR’s are performing very well: 1-3.5%