Startup Lessons Learned

SEPTEMBER 22, 2008

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. The AARRR model (hence pirates, get it?)

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Startup Lessons Learned

OCTOBER 7, 2008

The App Store is a channel for customer acquisition. This is completely analogous to the situation elsewhere on the internet, where launching a new website, product, or service with PR is getting harder and harder. On the web, we have many of these channels: SEM, SEO, world of mouth, PR and viral.

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San Francisco Lean Retention SEM 68

Cracking the Code

OCTOBER 10, 2008

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. upfront acquisition cost, making the CLTV equal to $2.5-$0.7= means a $0.7

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