article thumbnail

The only 2 ways to build a $100 million business

Version One Ventures

Your business has a high viral co-efficient (or perhaps even a network effect) that lets you amass users cheaply without worrying too much about the monetization per user or spending money on paid acquisition. In addition, churn tends to rise as a company grows. High LTV can usually be found in transactional or subscription businesses.

article thumbnail

Acquire New Users by Adding Growth Hacking to your Marketing Strategy

ConversionXL

Neither would have achieved virality had customers not received something tangible for their efforts. For each potential channel, look at: Customer acquisition cost How many customers you can reach Whether the channel reaches the right audience. Instead, they could simply click a link and enter an email address. Activation.

Retention 113
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

#KillerSaaSPitch in 10 Words (Part 2)

Cracking the Code

It occurred to him that he should try and find one of the drivers going his way and offer to share petrol costs in exchange for use of an empty seat. how many searches are available on Adwords) and what is the quota attainment and churn rate of the sales people as well as their profile SMB online sales (e.g.,

article thumbnail

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. One of my CEOs pointed out to me at a board meeting last week: “Our average customer acquisition cost (CAC) is irrelevant for the future.

Metrics 20
article thumbnail

The Lean Analytics Cycle: Metrics > Hypothesis > Experiment > Act

Occam's Razor

Perhaps it's an increase in your conversion rate; Or a higher number of visitors who sign up; Or a greater number of people who share content with one another; Or a lower monthly churn rate for users of your application; Maybe it's even something as simple as getting more people into your restaurant.

Metrics 156
article thumbnail

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

David Teten

Some notable metrics are revenue growth rates, free cashflow, leverage ratios, historical financing amounts, returns on marketing spend, customer acquisition costs, lifetime value of customers, customer churn rates, and team social scores. Lighter Capital, a Revenue Based Investing VC, offers a Cost of Capital Calculator.

article thumbnail

Lean Analytics

Startup Lessons Learned

If you're working on the Sticky Engine of Growth , you're focused on very different metrics from those that you care about in the Viral Engine of Growth. Here's what they have to say about churn rates in SaaS businesses: The best SaaS sites or applications usually have churn ranging from 1.5% to 3% a month.

Analytics 167