Remove Aggregator Remove Cost Remove CPA Remove Customer
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Fracking Your Customer Base

crowdSPRING Blog

Fracking works nicely as a metaphor for any business, large or small, that wants to leverage their existing customer base and extract the maximum revenue, traffic, or profitability from their own existing assets. Fracking is to energy extraction what data mining can be to your customer’s lifetime value to your business.

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Cliff Notes S-1: Kayak ? AGILEVC

Agile VC

How They Do It: Aggregate data from travel data warehouses like ITA as well as indexing travel providers websites, provide this information to consumers in a highly customizable search engine. paying for travel data from ITA or others (customers acquisition spend is not included in COGS). Distribution revenue is CPC and CPA. .

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Facebook Advertising / Marketing: Best Metrics, ROI, Business Value

Occam's Razor

Compute ROI: (cost of Facebook campaigns + salary of people running campaigns + agency creative costs) vs. profit from incremental product sales. And then beyond, to measuring your Net Promoter Score (or the latest flavor of the month customer centric metric), etc. An additional prove value scope can also be: Cost savings.

Metrics 165
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The Most Misunderstood Facts About Building a Business on YouTube

Both Sides of the Table

YouTube takes too high of a revenue split (45% vs. 30% that Apple and many other distribution companies take – FWIW, YouTube argues this is because their costs are much higher since they host and stream the video). You have to have some of your own content formats and not just be an aggregator of talent. But think of this.

SEM 150
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It's a startup, not a spreadsheet

Startup Lessons Learned

That’s because the model is based on assumptions about customers that are totally unproven. If we already knew who the customer was, how they would behave, how much they would pay, and how to reach them, this wouldn’t be a disruptive innovation. If it costs $0.10 But $10.00?

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Advertising Wants to be Measurable – An Investment Thesis

Both Sides of the Table

By now we all know that the largest part of the online spend has been SEM (search engine marketing) where people buy CPC (cost per click) links to display alongside the “organic&# search results in the search engine. They are detail oriented, cost focused, quality obsessed and chasing a big market opportunity.

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Screw Traffic – Show Me The Money

ConversionXL

What about costs? Assumption: Well I’ve got my product now, I’m assuming now all I have to do is get some traffic for a reasonable CPC and enough visitors will convert to customers for me to be able to grow this business. Estimate average monthly spend, churn and fixed expenses to calculate customer lifetime value (LTV).

Metrics 111