Remove Books Remove Churn Rate Remove Early Stage Remove SEM
article thumbnail

Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

profitable and companies like Amazon who chose to focus on growth > profitability were not losing money on each book sale (ie they were gross margin positive). So if you paid $100 for a customer who converted via a Facebook ad or Google search ad (SEM) that is not your CAC. Gross margin positive !=

Metrics 150
article thumbnail

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

Cracking the Code

Bessemer SaaS Law #1: Your key monthly business metrics are: CMRR (Committed Monthly Recurring Revenue), Churn, and Cash flow - “Bookings” is for suckers. The traditional metric of Bookings would value Customer A at $120,000 and suggest Customer B is more valuable at $180,000.