Startup Professionals Musings

MAY 5, 2017

The cost of entry is at an all-time low, working from home through an Internet website seen globally, turning a hobby or an invention into an online business. Having a website won’t help if customers can’t find it. All marketing costs money, including viral marketing, search engine optimization, click-through, and social media support.

Cost 144

Cost Social Media Startup Viral 144

Cracking the Code

FEBRUARY 23, 2011

The sales productivity ratio (measured with the Customer Acquisition Cost or CAC ratio) are also fairly similar for the two groups (except for a small cap dip in Q4 09) and therefore do not explain the difference Why is scale so much rewarded by public markets? SaaS business metrics: why are they different? Global Warning!

Software Review 101

Software Review Technical Review Valuation Europe 101

ConversionXL

MAY 27, 2022

This value-based model bringing all the right customers to their yard is called demand generation. Stage 1: Target the right metrics for an effective long game. However, due to B2B market saturation, customer acquisition costs are rising ; this digital marketing strategy of giving a little and getting a lot no longer works.

Demand 124

Demand B2B Distribution Channel 124

Cracking the Code

MARCH 24, 2015

gathered at the event. It is not very polished but was designed for a fast read.

API 48

API Fractional CTO CTO Hire San Francisco 48

Cracking the Code

DECEMBER 1, 2009

SaaS business metrics: why are they different? Global warming: a plague for humanity? Popular Media: the key to viral marketing. Global Warning! The recession created opportunities! ► 06/17 - 06/24. (1). Save the planet! ► 04/15 - 04/22. (1). Don't click on this link! ► 04/08 - 04/15. (1).

Software Review 48

Software Review Technical Review Cloud Europe 48

Startup Lessons Learned

OCTOBER 23, 2013

It provides a basic introduction to analytics as they apply to Lean Startup, including sections on what metrics to use and how to interpret them. For instance, Ben lists out the worst of the “vanity metrics,” a term that describes appealing but meaningless or misleading numbers. Alistair: There are plenty. Consider a restaurant.

Analytics 167

Analytics Lean Widget Metrics 167

ReadWriteStart

JUNE 29, 2020

Thus, let’s start this discussion by defining the global crisis caused by the new coronavirus, COVID-19 , so that we can look forward to finding the opportunity in the crisis. There has never been a viral outbreak of such magnitude before. .” – Albert Einstein. Crisis versus opportunity: Setting the Scene.

Bootstrapping 85

Bootstrapping Global Startup Hungary 85

Cracking the Code

OCTOBER 9, 2009

One way to measure this productivity is to look at the Customer Acqusition Cost ratio that I have defined in a previous post. However, as the second graphs shows, some companies such as Constant Contact, Vocus or Salesforce do start to show a stabilization or an improvement in their productivity metrics. Global Warning!

Software Review 48

Software Review Technical Review Cloud Europe 48

Agile VC

MAY 26, 2011

We were post product and had viral growth, albeit at very small scale and still had to evangelize the concept of a vital coefficient w/ most investors. I’m the founder, ex Hewlett-Packard Director of Advertising and former SVP at Millward Brown (global brand/ad research firm owned by WPP). link] leehower. link] Terence Donnelly.

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

Cracking the Code

NOVEMBER 10, 2009

Employees are now powerful customers, not just their managers! SaaS companies use different metrics to calculate renewals. SaaS business metrics: why are they different? Global warming: a plague for humanity? Popular Media: the key to viral marketing. Global Warning! Build Employee Software. mguinan said.

Software Review 48

Software Review Cloud Technical Review Sales Cycle 48

Cracking the Code

MARCH 12, 2010

The SaaS growth recovery does not seem to take a "V" shape 2) Sales productivity is ramping up: bottom was hit in the first half of 2009 However, the sales and productivity of the group, measured by the median "Customer Acquisition Cost ratio" or "CAC ratio", seems to be recovering more steeply. SaaS business metrics: why are they different?

Software Review 63

Software Review Technical Review Cloud Forecast 63

Cracking the Code

NOVEMBER 13, 2008

It is time to fix your key SaaS metrics: P&L: MRR = MRE: you control your destiny when your monthly revenue equals your monthly expenses Sales & Marketing: Your cost of capital doubled, so if a CAC ratio > 0.5 Cash is King…and scarce: if you are in a funding cycle, raise as soon as possible and as much as possible.

Software Review 48

Software Review Technical Review Valuation Portfolio 48

Cracking the Code

JANUARY 22, 2009

For SaaS companies, we found that MRR is the best metric on which to base sales commissions. The company had the chance of selling a very sticky product to large customers paying upfront, so there was no need to improve the sales bonuses based on cash collection and multi-year contracts. SaaS business metrics: why are they different?

Software Review 91

Software Review Clawback Sales Salary 91

Ben's Blog

MAY 15, 2020

What are those metrics? Andrew : If you are a travel company right now, I think you’re seeing very specific metrics dropping. As a result of that, all of those metrics go up. You see companies both with headwinds and tailwinds doing that, and that’s because this has been an injection of weird customer behavior.

Founder 36

Founder Conversion Technical Review Cash Position 36

Both Sides of the Table

MAY 23, 2012

In an over-funding environment companies are encouraged to eschew revenues in a land grab to acquire eyeballs, clicks, page views or whatever other vanity metrics give VCs the false comfort that they’re sitting on a gold mine. In 1997, the year the Kauffman Report begins its analysis; there were 70 million users online globally.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

Cracking the Code

DECEMBER 2, 2006

and so I think its a very, very big bet“ - Steve Ballmer, CEO, Microsoft Indeed, the opportunity is large: with 11m+ SMBs in the US only spending more than $300B in IT.but so far nobody managed to "crack the code" and current sales model are facing diminishing returns: (1) HT companies have little insights in their SMB customers (e.g.,

Software Review 48

Software Review Technical Review Europe Software 48

View from Seed

AUGUST 30, 2016

My contact at Facebook assured me that this story wasn’t the only one of its kind, and that it was more common than you’d think in other offices they had globally. “Users” is interesting, but the engagement metrics and value of users is where real success comes into play. Doesn’t look all that compelling.

Social Media 185

Social Media B2B North America Media 185

Cracking the Code

FEBRUARY 12, 2007

SaaS business metrics: why are they different? Global warming: a plague for humanity? Popular Media: the key to viral marketing. Global Warning! on a scale of 1-4). on a scale of 1-4). ► 06/17 - 06/24. (1). Save the planet! ► 04/15 - 04/22. (1). Don't click on this link! ► 04/08 - 04/15. (1).

Software Review 48

Software Review SEM Marketing Las Vegas 48

Cracking the Code

DECEMBER 16, 2006

It is true that the SaaS model faces some challenges like service reliability, data privacy, lower level of customization, integration with existing applications, vendor viability concerns. whereas traditional software companies of this size have a growth rate of less than 10% and revenue multiples of 2-2.5x.

Software Review 48

Software Review Silicon Valley Technical Review Software 48

David Teten

DECEMBER 3, 2019

This provides us more time to develop meaningful relationships with prospects and customers. A number of analysts have particular focus on serving the customers of technology companies, e.g., Gartner and 451 Research , and their work is also relevant for investors. 3) Raise capital. 6) Due diligence.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Occam's Razor

FEBRUARY 3, 2014

Some have experimented with virality ( Pepsi Test Drive or Dove Beauty , etc.), At its purest, YouTube is about: Reaching massive global audiences. Reach one of the largest global audience on the planet proactively consuming content. Select if you want global, local, control the size of your audience. Building platforms.

Analytics 149

Analytics Marketing Audience Channel 149

Occam's Razor

MAY 19, 2014

" Or, "Profitability, it is so sexy, just focus on Customer Lifetime Value, no, sorry, I mean Profitability." But the problem is that single golden metrics hide valuable insights and, more often than not, drive bad behavior. Here's my proposal: If you are pushed to have a single golden metric, give it a partner.

Metrics 159

Metrics Analytics SEC Acquisition 159

mashable.com

JULY 10, 2012

Chris Andrasick, CEO of Tacit Knowledge , believes that the mom-and-pop advantage extends beyond customer loyalty, and that there is in fact a logistical advantage, as well. The metrics from SumAll show online retailers the real-time metrics that are having the biggest impact on their bottom line. Remarketing.

eCommerce 101

eCommerce Software Review Technical Review Social Media 101

Duct Tape Marketing

JANUARY 26, 2017

You can set up custom rules for the spider to only crawl a specific directory of the site. percent of global Internet users access the Internet via mobile. And it’s not an isolated metric but the one taken in comparison with other pages ranking next to that one. Mobile Un -Friendliness. percent of U.S. About the Author.

SEO 28

SEO Mobile Internet Search 28

Duct Tape Marketing

MARCH 30, 2023

She is the founder and CEO of JAM a multi-million dollar global business that has connected millions of people through play since its inception as one of the largest adult recreational sports leagues in the world. The JAM team has produced and delivered over 3500 playful corporate events, in over 30 countries since the summer of 2020.

Retention 72

Retention Canada Channel Pay to Play 72

Startup Lessons Learned

MARCH 13, 2009

Marketing launch) Make a new product available to customers in the general public. In particular, a marketing launch can help you do three things (courtesy, as is most of my marketing advice, of The Four Steps to the Epiphany ): Drive customers into your sales pipeline. Do your customers really read TechCrunch?

San Francisco 168

San Francisco PR Lean Early Stage 168

mashable.com

SEPTEMBER 14, 2011

Amidst an increasingly connected world, globalization is the order of the day. However, while the benefits are many (including more efficient communication and greater potential for collaboration), today’s digital age can put increased pressure on young businesses to expand globally — and to do so quickly. from France.

France 77

France Marketing Social Media Startup 77

Cracking the Code

MAY 25, 2010

As an Eloqua customer and just getting done reading the Bessemer’s Top 10 Laws of Cloud Computing and SaaS and am working on being able to share it potential clients. SaaS business metrics: why are they different? Global warming: a plague for humanity? Popular Media: the key to viral marketing. Global Warning!

Software Review 74

Software Review Cloud IPO Jordan 74

Startup Lessons Learned

DECEMBER 6, 2008

Having early customers means balancing the needs of your existing customers with the desire to find new ones. The Entrepreneur’s Guide to Customer Development ► June (3) What is a startup? And still being a startup means continuing to innovate as well as keep the lights on.

San Francisco 74

San Francisco SCRUM Lean Continuous Deployment 74

Cracking the Code

OCTOBER 10, 2008

Only after reaching $1M in CMRR should you consider hiring European sales and services execs behind customer demand. ” Take advantage of being on-demand and allow customers to try and buy your service with as little friction as possible. Effectively measuring and understanding your CAC and CLTV metrics are key to future success.

Software Review 48

Software Review North America Europe Metrics 48

betashop.com

OCTOBER 8, 2012

It has been awesome, flattering, and humbling to see that post went viral and has been seen by so many thousands of people — mainly aspiring entrepreneurs — and has been translated into many languages. It’s not about you, it’s about your customers. At Fab we have been focused from day 1 on making our customers smile.

Technical Review 108

Technical Review Technology Software Review Valuation 108

Reid Hoffman

JANUARY 19, 2021

Obviously, both founders and investors prefer when one gifted leader can guide the company from garage to global titan. The board members need to participate in or even facilitate a collective decision-making process which considers what’s right for the shareholders, what’s right for the employees, and what’s right for the customers.

Startup 36

Startup Cofounder Advertising Hiring 36

Cracking the Code

MARCH 10, 2008

Lets call this ratio the Customer Acquisition Cost ratio or CAC ratio. The definition becomes for the last quarter of 2007: CAC Ratio = (GM (Q4 07) - GM (Q307)) x 4 / S&M costs (Q307) A CAC ratio of one would be equivalent to breakeven marginally on a new customer in one year. SaaS business metrics: why are they different?

Sales 79

Sales Software Review Marketing Technical Review 79

Brandanew

JANUARY 8, 2016

The pace of technology has altered the way we view digital and connect with our customers. Most small business and Startup founders are talking about customer engagement and social presence beyond the customary likes and one-post-a-month schedules. Adam Busch is a Content Marketer and SEO Specialist for RentLingo.

Analytics 100

Analytics Social Media Marketing Media 100

Cracking the Code

SEPTEMBER 2, 2008

Is that how Lawson thinks about its customers (I assume some of them are using some sort of SaaS application)? Of course not - the CEO has a much better way to qualify their customers as you will see below. ".traditional SaaS business metrics: why are they different? Global warming: a plague for humanity? Global Warning!

Software Review 48

Software Review Software Technical Review Cloud 48

Cracking the Code

JULY 6, 2007

SaaS business metrics: why are they different? In addition, they grow organically from service usage expansion from their existing accounts and are better positioned to upsell since they interact with their customers regularly. Different models require different performance metrics. Cracking The Code. Friday, July 06, 2007.

Software Review 66

Software Review Metrics Valuation Technical Review 66

mashable.com

MAY 24, 2011

In other words, it isn’t just about choosing native apps or choosing the mobile web — it’s also about looking at who your customers are and what devices they use. Mobile websites that aren’t optimized for touch or for larger screens can make customers confused, and again, unlikely to purchase.

Mobile 90

Mobile Web Social Media Software Review 90