Startup Killer: the Cost of Customer Acquisition | For Entrepreneurs
www.forentrepreneurs.com
FEBRUARY 2, 2010
It appears that LTV should be about 3 x CAC for a viable SaaS or other form of recurring revenue model. These techniques are frequently referred to as the Low Cost Sales model, or as Sales 2.0. With certain complex products, this will need an on-site installation by a sales engineer, which sends costs through the roof.
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