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Startup Killer: the Cost of Customer Acquisition | For Entrepreneurs

www.forentrepreneurs.com

To compute the cost to acquire a customer, CAC, you would take your entire cost of sales and marketing over a given period, including salaries and other headcount related expenses, and divide it by the number of customers that you acquired in that period. (In For more on the topic of Viral Growth, refer to my blog post on that topic here.)

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These Innocent Hiring Mistakes Can Kill Your Startup

Transformify

You don’t have the right people on board, you are burning cash and the work is not done, at its worst, your product is already live and you are losing clients due to software bugs and poor user experience. The cost could be lower as you usually pay on a ‘’time and materials’’ basis vs paying a full-time salary.

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Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

The top performing SaaS companies typically achieve annual customer renewal rates above 90% - with most of the churn due to death (bankruptcies) or marriage (acquisitions) - and over 100% renewals on a dollar value basis due to up-sells into this installed base. Cashflow is the other key metric.