Both Sides of the Table

APRIL 26, 2016

The key to being able to run a business that isn’t yet profitable (on operating margin) is availability of capital to finance losses and preferably at a cost that isn’t too punitive to the founders and employees. So if you paid $100 for a customer who converted via a Facebook ad or Google search ad (SEM) that is not your CAC.

Metrics 150

Metrics Cost Acquisition Startup 150

Cracking the Code

NOVEMBER 10, 2009

Get instrument rated, and trust the 6Cs of Cloud Finance (more.) Cloud accounting is all about matching revenue and costs to consumption…well, except for professional services! Your caution in Law 6 about over-estimating the impact of SEM and other lead-generation activity is particularly astute. Yahoo Finance.

Software Review 48

Software Review Cloud Technical Review Sales Cycle 48

Cracking the Code

OCTOBER 10, 2008

Be prepared to cross the desert - SaaS requires R&D and sales expense up front for a multi-year stream of revenue, so it demands enough investment capital to fund 4+ years of runway. Farming is also often overlooked, but can help grow customer accounts and revenues from 30% upwards (if successful). Great list! Philippe Botteri.

Software Review 48

Software Review North America Europe Metrics 48

Both Sides of the Table

MARCH 11, 2011

I thing I’ve learned over the years is that technology purists hate advertising even when it is that revenue stream that truthfully drives much of our industry. Not because they didn’t want to do Pay-per-click (they are huge buyers of SEM) but because they didn’t want other people to know what they paid for clicks!

Product 350

Product Tuvalu Dilution Incubator 350