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Model Building from the Ground Up

ConversionXL

Is your KPI net present value of the project? The foundation of the model is the aggregate of the known information. Your objective, in this case, is to determine whether your $1 million should be invested in the plot. The next step is to determine your KPI. What you choose is critical—everything ties back to this step.

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Asset Management Is A Bizarre Industry Ripe For Disruption

David Teten

I don’t think that a Net Present Value calculation is appropriate for every company. In aggregate, angels are significant investors. And what happens if you don’t get into the one VC that gets into Cornerstone On Demand (ffVC company, now the 10th largest SaaS company in the world)?

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Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

To answer the second question and make sure you are building a profitable business, the key indicator to look at is the Customer LifeTime Value (CLTV). The CLTV is the net present value of the recurring profit streams of a given customer less the acquisition cost. A profitable business will have a positive CLTV.