Up and Running

OCTOBER 3, 2014

Subscription businesses are hot because of their recurring revenue model. The compounded earnings grow your revenue quickly and you don’t have to spend nearly as much time and effort getting them to come back and buy from you again. But, beyond the forecast, we needed to know what metrics we should be tracking.

Metrics 96

Metrics Churn Rate Forecast Revenue 96

Both Sides of the Table

MAY 19, 2018

A detailed financial model that shows your anticipated revenue, costs and profits (Income Statement) as well as your balance sheet and cashflow statements. Investors love to be able to see what you told them in forecasts in prior years and then compare with how you actually performed. against a broad range of similar companies.

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336

Up and Running

FEBRUARY 12, 2019

What’s more compelling than big talk is to show exactly how you will reach those millions—what information about your company do you have that’s made you forecast those kinds of sales ? percent average conversion rate. 5 percent monthly churn rate. 160 is average revenue per user (ARPU). Show your darn product!

Sweat Equity 122

Sweat Equity Churn Rate Elevator Pitch Forecast 122

ConversionXL

OCTOBER 30, 2019

The Pareto Principle states that you get 80% of your revenue from 20% of your customers. Metric examples: Monthly recurring revenue (MRR); Average revenue per account (ARPA); Engagement; Customer lifetime value (LTV); Upsell/cross-sell conversion rates. Do you include revenue sharing with other parties?

Retention 101

Retention Metrics Churn Rate Acquisition 101

Seeing Both Sides

JULY 21, 2014

As a result, the full revenue for each deal was recognized in that quarter as soon as the software was shipped. This allowed our revenue to skyrocket from $1.8 But the downside to our business model was that we did not have hardly any recurring revenue. . I later came to realize that r ecurring revenue is magic.

Revenue 54

Revenue Valuation Churn Rate Portfolio 54

SVPG

AUGUST 10, 2014

In this world, each product manager would worry about the cost structure of their product, the marketing plan, sales forecasts, contribution and profitability. The origin of this question comes from the days when companies had a portfolio of products where each product represented one or more SKU’s. Think consumer packaged goods.

Churn Rate 71

Churn Rate Forecast Portfolio Leadership 71

Up and Running

JANUARY 24, 2014

What’s more compelling than big talk is to show exactly how you will reach those millions—what information about your company do you have that’s made you forecast those kinds of sales? 0.22% average conversion rate. 5% monthly churn rate. 160 is average revenue per user (ARPU). 0.22% average conversion rate.

Sweat Equity 138

Sweat Equity Churn Rate Forecast Business Model 138

ConversionXL

OCTOBER 30, 2019

The Pareto Principle states that you get 80% of your revenue from 20% of your customers. Metric examples: Monthly recurring revenue (MRR); Average revenue per account (ARPA); Engagement; Customer lifetime value (LTV); Upsell/cross-sell conversion rates. Do you include revenue sharing with other parties?

Retention 48

Retention Metrics Churn Rate Acquisition 48

Seeing Both Sides

OCTOBER 24, 2015

Since I see a few common patterns of mistakes, I thought I'd add to the LTV literature and point out the top three reasons many investors roll their eyes when they see entrepreneurs present inflated, poorly constructed LTVs: 1) Your churn rate is understated. A monthly churn rate of 1%? 2) Your cost of capital is too low.

Churn Rate 20

Churn Rate Early Stage Revenue Metrics 20