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Startup Killer: the Cost of Customer Acquisition | For Entrepreneurs

www.forentrepreneurs.com

Blog About Log in Register Startup Killer: the Cost of Customer Acquisition In the many thousands of articles advising entrepreneurs on what they have to focus on to build successful startups, much has been written about three key factors: team, product and market, with particular focus on the importance of product/market fit.

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Customers Love Free Stuff … But That’s Not Your Problem

abovethecrowd.com

Paypal famously offered customers $5 to invite a friend, who would then also get $5 as part of a highly successful viral marketing campaign (they actually started at $20, and then reduced it to $10 and then ended at $5). It would cost a tremendous amount of money to run such a program. Billions of dollars. Wouldn’t that be great?

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What the Past Can Tell Us About the Future of Social Networking

Both Sides of the Table

There was a backlash against the Plaxo spamming yet it paved the way for everybody who came after them to get users to drive viral adoption and we’d throw up our arms and say, “oh boy, here goes another social network that my friends are going to spam me about&# mentality that made it acceptable for everybody who came afterward.

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Cracking The Code: Happy New Year 2008!

Cracking the Code

You have been 2,950 to visit the site in 2007 and you looked at 3,920 pages. Looking back at 2007, I wanted to give a quick overview of the investments I have been involved with, since I have not blogged about any of them yet. Cornerstone on Demand is a fast growing Learning and Talent management company based in Los Angeles.

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Cracking The Code: Getting through the downturn: a few thoughts.

Cracking the Code

Fifteen CFOs participated - about half of them from Bessemer portfolio SaaS companies (Cornerstone On Demand, Intacct. It is time to fix your key SaaS metrics: P&L: MRR = MRE: you control your destiny when your monthly revenue equals your monthly expenses Sales & Marketing: Your cost of capital doubled, so if a CAC ratio > 0.5

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Selling to large enterprises costs big dollars no matter how frictionless your sale is

BeyondVC

I have written a number of times about frictionless sales and how on-demand companies have a huge opportunity to reduce their sales and marketing costs and subsequently scale their business more efficiently. There is nothing to install, so workers can start using online software without the aid of the tech department.

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The 10 laws of SaaS unveiled at Bessemer CEO Summit

Cracking the Code

2007 was a turning point for the SaaS industry with the successful IPOs of NetSuite, SuccessFactors, DemandTec, Salary.com, Aprimo and Constant Contact. The 23rd started with a quick overview of the achievement of our Software and SaaS portfolio in 2007 presented by Byron Deeter, the co-head of our West Coast SaaS practice. Stay local.