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Visualizing the Interactions Between CAC, Churn and LTV

A Smart Bear: Startups and Marketing for Geeks

There are numerous online resources to help with the exact mathematical formulas for CAC, CAC payback, churn rate and LTV. The black horizontal line represents time and the unlabeled vertical access represents relative profit. Basic Concepts The concept of the graphic shown below is very simple.

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VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

Technographics vendors such as Builtwith , Datanyze , HG Data , Stackshare, and Stacklist help CEOs identify the right tech platform on which to build their business; they’re also helpful for investors to due diligence a company’s tech stack choices. Harvard Business School Current Research Sources for Private Equity.

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Why Metrics Get Worse With Scale

Seeing Both Sides

Conventional wisdom suggests that the most important metrics for a startup - such as unit economics, cost of acquisition, lifetime value, churn rates - typically get better with time. Churn rates are another metric that can get harder with scale. Monetization can get harder with scale as well. in 2009 to $11.80

Metrics 20
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How to create a profitable Freemium startup (spreadsheet model included!)

andrewchenblog.com

To become profitable using a freemium business model, this simple equation must hold true: Lifetime value > Cost per acquisition + Cost of service (paying & free) Said in plain english, the lifetime value of your paying customers needs to be greater than the cost it took to acquire them, plus, the cost servicing all users (free or paying).

CPA 51