Acquisition Churn Rate Cost Finance 
Both Sides of the Table
APRIL 26, 2016
The key to being able to run a business that isn’t yet profitable (on operating margin) is availability of capital to finance losses and preferably at a cost that isn’t too punitive to the founders and employees. CAC is often measured incorrectly and doesn’t often doesn’t capture the true costs of acquisition.
Feld Thoughts
MARCH 10, 2012
The call was about a potential financing he is considering. We had a wide ranging conversation over an hour about the current state of the business and how he’s thinking about the financing. One of these was around churn – he asserted that one of the clear weaknesses of the business was the high churn rate.
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Seeing Both Sides
OCTOBER 24, 2015
Since I see a few common patterns of mistakes, I thought I'd add to the LTV literature and point out the top three reasons many investors roll their eyes when they see entrepreneurs present inflated, poorly constructed LTVs: 1) Your churn rate is understated. A monthly churn rate of 1%? 2) Your cost of capital is too low.
Cracking the Code
DECEMBER 11, 2015
When Elon Musk received $200 million from the proceeds of the PayPal acquisition in 2002, he re-invested everything to build the next big thing: $100 million in SpaceX and $100 million in Tesla. It occurred to him that he should try and find one of the drivers going his way and offer to share petrol costs in exchange for use of an empty seat.
ConversionXL
NOVEMBER 17, 2022
The company once had the market’s highest churn rate and lowest Net Promoter Score (NPS). By switching from manual analysis data to predictive analytics, Sprint could quickly analyze user behavior to spot customers at risk of churn and identify retention offers. Cost per click (CPC). Customer acquisition cost (CAC).
David Teten
DECEMBER 3, 2019
Some notable metrics are revenue growth rates, free cashflow, leverage ratios, historical financing amounts, returns on marketing spend, customer acquisition costs, lifetime value of customers, customer churn rates, and team social scores.
Software By Rob
JULY 21, 2011
But we rarely think about the specifics of how we are going to reach prospects, and how much that’s going to cost. A Look at One Acquisition Approach – Google AdWords. Since this will be easier to explain with an example, let’s start by looking at the cost of acquiring a customer using Google AdWords.
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