www.forentrepreneurs.com

FEBRUARY 2, 2010

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.

Acquisition 103

Acquisition Cost Customer Entrepreneur 103

ConversionXL

JUNE 8, 2017

Acquisition segments. Acquisition segments. It is about focusing your marketing efforts on a few select companies that could represent huge revenue streams. For some products, customers come in all shapes and sizes, from all countries, all backgrounds, all salaries, and all levels of computer skills. Contextual segments.

Programming 97

Programming Revenue Analytics Software Review 97

SoCal CTO

SEPTEMBER 27, 2011

Suppose further that he's going to cost $60k a year in salary and overhead, x 1.5 = $90k total. I've talked about this topic before in How Investors Think About Valuation of Pre-Revenue Startups. The team gets another $3 million as a severance payment or an earn-out, to sweeten the acquisition offer. and we have 11.1%

Early Stage 391

Early Stage Equity CTO Hire Sweat Equity 391

Startup Professionals Musings

MAY 16, 2020

Celebrate the ability to pay yourself a salary. Having enough revenue to finally give yourself a salary is an inspiring event, and one that you should savor. New business models that provide an ongoing revenue stream, or a secondary stream from advertising, raise your margins and can give you some additional satisfaction.

Sweat Equity 435

Sweat Equity Salary Viral Leadership 435

Both Sides of the Table

NOVEMBER 14, 2017

How long does it take me to pay back my original customer acquisition costs? Whereas New York City has very high real estate costs and very high salaries, launching in Chicago and D.C. An example of the systems companies build are pricing & revenue management tools to best help to optimize yield. were more distributed.

Operations 286

Operations New York City Technical Review Startup 286

Both Sides of the Table

DECEMBER 27, 2011

If you hire 6 sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business for 4-6 months. They have have raised $2-3 million, built a product that has some amount of market traction and got to annualized revenues of around $1 million.

Startup 418

Startup Revenue Technical Review Flash 418

YoungUpstarts

SEPTEMBER 12, 2018

Research shows that companies with greater gender and racial diversity drive nearly 15x more sales revenue than companies with homogenous teams, proving that it literally pays to build an inclusive team. A good team doesn’t always mean a full-time role or a full-time salary. Diversify your talent search to diversify your team.

Hiring 100

Hiring Technical Review Silicon Valley Due Diligence 100

Hearpreneur

JANUARY 19, 2022

Especially during challenging times, retention is significantly more crucial than acquisition. Although our in-person services were put on hold, our eCommerce products, including virtual services tripled in revenue. Due to that, we decided to widen our client base to increase our revenue. Thanks to Gavin Johnson, Evking ! #3-

Entrepreneur 119

Entrepreneur Metrics Technical Review North America 119

ConversionXL

OCTOBER 8, 2021

That’s why Customer Acquisition Cost (CAC) is such a critical metric. In most cases, it includes: Salaries of sales and marketing teams Advertising spend on acquiring new customers (Search/Display Ads, Social Ads, Sponsorship, etc.) That would mean the 1100 new customers in March are the result of February’s acquisition cost.

Acquisition 135

Acquisition Churn Rate Cost Customer 135

Babbling VC

FEBRUARY 17, 2013

You will be responsible for their hiring and will carry responsibility for total revenue of the sales department. . 3 to 5 years sales experience, ideally in the online space with a focus on new customer acquisition. Must be able to do cold acquisition of new customers as well as develop new market segments independently. .

Sales 65

Sales Russia Sweden France 65

A Smart Bear: Startups and Marketing for Geeks

JULY 23, 2013

Marketo filed for IPO with impressive 80% year-over-year growth in 2012, with almost $60m in revenue. of revenue, force-feeding sales pipelines with an unprofitable product. SaaS companies earn their revenue over time. time to earn back the revenue to cover all your customer acquisition expenses) 75% annual retention.

Business Model 335

Business Model .Net Revenue IPO 335

Startup Professionals Musings

NOVEMBER 14, 2012

Here is my selection of ten key metrics that every six-sigma joint like GE tracks without thinking, but too many small businesses only monitor haphazardly, if at all: Sales revenue. Cost of customer acquisition. Customer acquisition cost is calculated by dividing total acquisition expenses by total new customers over a given period.

Metrics 266

Metrics Retention Acquisition Salary 266

David Teten

DECEMBER 16, 2015

The most common financial metrics ffVC asks companies to compare vs. budget are: Gross Revenue. Customer Acquisition Cost (CAC). Monthly Recurring Revenue (MRR). Average Revenue Per Account. And it means holding yourself and others rigorously accountable, which can be painful. So how do you do it? Gross Profit.

Metrics 60

Metrics Analytics Balance Sheet .Net 60

ConversionXL

SEPTEMBER 15, 2020

Do what’s best for the customer—even if it doesn’t grow revenue. A few of the features Monzo built, however, go against revenue generation in favor of doing what’s best for customers. It’s not the only example of Monzo serving customers at the expense of potential revenue. Test novel ways of solving the same problem.

Customer 85

Customer Community Revenue Software Review 85

Startup Professionals Musings

SEPTEMBER 7, 2015

I recently saw a startup projecting $50 million in revenue for the first year. I recommend five-year projections, to show the evolution of revenues and expenses and funding and profitability expectations over time. My rule of thumb is that startup-revenue projections in the fifth year better be between $20 million and $100 million.

Liquidity Event 120

Liquidity Event Startup Initial Public Offering Equity 120

Startup Professionals Musings

APRIL 2, 2016

Celebrate the ability to pay yourself a salary. Having enough revenue to finally give yourself a salary is an inspiring event, and one that you should savor. New business models that provide an ongoing revenue stream, or a secondary stream from advertising, raise your margins and can give you some additional satisfaction.

Sweat Equity 120

Sweat Equity Salary Startup Viral 120

Both Sides of the Table

JUNE 17, 2017

If you hire 6 senior sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business 6 months. Revenue When I look at an income statement I start by focusing on the revenue line. You need to understand the “quality” of the revenue.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Ben's Blog

JANUARY 19, 2011

Types of Acquisitions. For the purpose of this discussion, it is useful to think about technology acquisitions in 3 categories: Talent and/or Technology— when a company is acquired purely for its technology and or its people. Business— when a company is acquired for its actual business (revenue and earnings). The Logical.

Acquisition 78

Acquisition Technical Review Intellectual Property Silicon Valley 78

Austin Startup

AUGUST 29, 2017

A 1992 study from the Harvard Business Review found that the right pricing changes can drive revenue and profit improvements faster than any other growth lever — faster than increasing the volume of sales or decreasing costs. At worst you will destroy hard earned revenue and/or profit. The importance of price. Let’s break this down.

Differentiation 54

Differentiation Virginia .Net B2C 54

Steve Blank

APRIL 1, 2020

Your revenue plans are no longer valid. What’s your monthly cash burn at your new low revenue level? The CEO should dial through as many of the largest existing customers to get a firsthand understanding of the magnitude of any revenue shortfall. How can you shift focus to customer retention versus acquisition?

South Korea 333

South Korea Salary Business Model China 333

Startup Professionals Musings

JANUARY 16, 2015

Celebrate the ability to pay yourself a salary. Having enough revenue to finally give yourself a salary is an inspiring event, and one that you should savor. New business models that provide an ongoing revenue stream, or a secondary stream from advertising, raise your margins and can give you some additional satisfaction.

Sweat Equity 120

Sweat Equity Salary Viral Leadership 120

Up and Running

JULY 31, 2014

Think about big categories: salary, marketing, sales, rent, utilities. Then I always mention CAC, customer acquisition cost. Peter Thorsson: I think we got one question for you both if you don’t mind on the customer acquisition cost points. It’s the same thing with expenses. Again, do not put 300 lines of expenses as your goals.

Software Review 74

Software Review Sales Acquisition Small Business 74

Seeing Both Sides

JULY 11, 2013

B2C sales and customer acquisition efforts are a different matter (and one I''ll perhaps address in a future blog), but for B2B, those three models are the most common pattern. customer acquisition cost or CAC). Their quotas may be as low as $400-500K, but their salary at target might be only $80-100K. 1) Enterprise Sales.

Sales 50

Sales Technical Review Software Review B2B 50

ConversionXL

MARCH 3, 2016

You should have acquisition metrics, behavioral metrics and result metrics no matter what. Acquisition Custom Reports. Visitor Acquisition Efficiency Analysis Report. What this report will tell you: So far, we’ve done a pretty good job of measuring close to the money (revenue, conversions, etc.) Overhead costs.

Analytics 48

Analytics Customer PPC Metrics 48

YoungUpstarts

APRIL 5, 2019

Call me old school, but I believe in metrics like growth, revenue, and profit. Growth rates don’t pay employee salaries. They’re ripe for acquisition. A high-profile funding round from an all-star investor doesn’t guarantee success. Nor does building a board of hotshot directors magically get a company through its ups and downs.

Valuation 162

Valuation Cofounder Metrics SEC 162

ConversionXL

MAY 27, 2022

The responsibilities from this DGM role at SaaS company Datto show how embedded demand gen managers are in marketing: • “Build strong, integrated marketing programs using a mix of content marketing, digital marketing, email marketing, and webinars to drive new business opportunities and revenue. How much do demand generation managers earn?

Demand 95

Demand Management B2B Campaign 95

This is going to be BIG.

DECEMBER 9, 2014

4) You''ve identified the best team, and while they''re asking for reasonable startup salaries, you can''t afford to hire them quite yet. 5) You''ve figured out how to get a sales funnel going, the flywheel is turning, you''ve got positive ROI on incremental salespeople or customer acquisition dollars and now you want to put gas on the fire.

Venture Capital 131

Venture Capital Equity Salary Acquisition 131

YoungUpstarts

DECEMBER 15, 2011

Investors Look at Salaries. Launching a business often involves dips in revenue, and a startup will only survive if it can manage expenses during this fragile time. Salaries are one item on a company’s balance sheet that catches the attention of some investors. Investors Seed Multiple Ventures.

Exit Strategy 167

Exit Strategy Balance Sheet Salary Startup 167

ReadWriteStart

APRIL 25, 2012

A billion dollars for a company with a photo-sharing app and zero revenue? But the acquisition was not all about the app. Facebook’s acquisition of Tagtile a week after the Instagram deal, for example, was all about the talent.). Get “Aq-hired”. The Instagram founders initially asked Facebook for $2 billion!). Do the Math.

Silicon Valley 123

Silicon Valley Acquisition Cofounder Salary 123

Startup Professionals Musings

MAY 30, 2016

In enterprise environments, performance objectives and bonuses are often tied to internal processes and targets, rather than product revenue, customer acquisition and market penetration. Salaries and support services carry corporate overhead.

Non-Compete 120

Non-Compete Startup Salary Acquisition 120

Pascal's View

DECEMBER 19, 2012

I’d like to know what percentage of those acquisitions are takeunders versus takeovers —a takeunder in this case means that the consideration paid is less than invested capital. That’s the key statistic on the health of the acquisition market from the 42%-of-the-market-seller’s perspective. That’s for sure!

Acquisition 31

Acquisition Merger Dilution Aggregator 31

This is going to be BIG.

NOVEMBER 28, 2011

They have lots of revenues, high growth, funding, etc. You probably didn't have that much time getting meetings and you probably got paid a pretty normal salary. Here are some of the tradeoffs when jumping into the startup world or choosing your next job: Certainty of Company Outcome.

Non-Compete 115

Non-Compete Design Hiring Incubator 115

socialmatchbox.com

OCTOBER 23, 2010

How To Calculate Whether A Freelance Web Application Programmer Is Asking For Too Much Step 1: Use the Indeed.com Salary Tool to Search for Their Job Title By Salary Level. The generally accepted hourly wage calculation used by the staffing industry is Annual Salary divided by 2000 Hours. at this stage.

Part-Time VPE 41

Part-Time VPE Sweat Equity DC Washington 41

The Equity Kicker

OCTOBER 8, 2012

According to Paul most startups should look at revenue growth, but active users is a good proxy for companies that aren’t charging their customers (yet). Many of those milestones will be growth oriented, but they often centre on hitting round numbers – e.g. $10k or $100k per month in revenues or 1m active users.

Silicon Valley 149

Silicon Valley IPO eCommerce Valuation 149

YoungUpstarts

SEPTEMBER 7, 2014

Revenue Growth. Enterprise startups must have processes in place to monitor revenue growth. According to a Pacific Crest survey , the average year-over-year revenue for enterprise startups is 89 percent. If you’re doubling revenue every year, you’re in great shape. Lifetime Value/Cost of Acquisition.

Metrics 219

Metrics Churn Rate Startup Acquisition 219

The Equity Kicker

DECEMBER 10, 2012

The same holds true for the marketer (or growth hacker if you have a semantic preference) who controls your customer acquisition channels, the salesperson who dominates your revenue creation, or the operations person without whom, you wouldn’t even know how to issue paychecks.

Employee 102

Employee Semantic Salary Acquisition 102

ConversionXL

JANUARY 8, 2018

Search Engine Optimization (SEO) is one of the biggest levers that a business can use within their acquisition strategy as part of their Growth goals. You’re likely familiar with the different Growth frameworks like AARRR (Acquisition, Activation, Retention, Referral, Revenue). It all start with Acquisition.

SEO 134

SEO Metrics Analytics Search 134