Remove Bankruptcy Remove Revenue Remove Search Remove SEM
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Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

Poorly calculated LTVs can become BVs (bankruptcy values). So if you paid $100 for a customer who converted via a Facebook ad or Google search ad (SEM) that is not your CAC. In SaaS (or any recurring revenue business) this is also a very difficult task. One big, beginners mistake people make in LTV is to measure revenue.

Metrics 150
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Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

Be prepared to cross the desert - SaaS requires R&D and sales expense up front for a multi-year stream of revenue, so it demands enough investment capital to fund 4+ years of runway. Farming is also often overlooked, but can help grow customer accounts and revenues from 30% upwards (if successful). Great list! Philippe Botteri.