One of the biggest red flags I see in many Internet-related business plans today is advertising as the initial revenue stream, or a key part of it. Until you get a million page-views per month, your revenue will be negligible, and advertisers won’t be interested in your site. Now back to the revenue realities. Face reality. MORE >>

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. 40, your CPA will be $40. If your LTV is $250 per customer this is $500 in future revenue per month. Photo by Stinkie Pinkie. Calculating LTV. Facebook. MORE >>

Froogle was a flop, but don’t think Google doesn’t want a bigger chunk of ecommerce revenue from people who begin their product searches on their search engine.*. Like Amazon, Google makes the vast majority of its revenue from users who are looking to make an online purchase. – are mostly a  loss leaders for Google. I know I do. MORE >>

The failure rate is just too high, and startups typically don’t have the assets or revenue stream to back up the loan. Pay particular attention to the financials, and have a CPA friend review for reasonableness before presenting. Demonstrate an ability to repay from revenues, not collateral. Marty Zwilling. MORE >>

is an elegant way to model any service-oriented business: Acquisition Activation Retention Referral Revenue We used a very similar scheme at IMVU, although we werent lucky enough to have started with this framework, and so had to derive a lot of it ourselves via trial and error. Choose one. The AARRR model (hence pirates, get it?) for H. MORE >>