Trending Sources

The Dangerous Seduction of the Lifetime Value (LTV) Formula

abovethecrowd.com

Many consumer Internet business executives are loyalists of the Lifetime Value model, often referred to as the LTV model or formula. Lifetime value is the net present value of the profit stream of a customer. advertising Internet Uncategorized Venture Capital Web/Tech LTV

6 Critical Marketing Metrics To Nail Today’s Buyers

Startup Professionals Musings

Individual measurements should include pipeline value by lead stage, closed revenue by program, pipeline growth, and overall win rate.

What If Web And Mobile Apps Are Like TV Shows?

A VC : Venture Capital and Technology

Companies are worth the net present value of their future cash flows. I was having lunch with a veteran of the entertainment and the video game business this past week. It was an interesting and wide ranging chat. I've watched my kids go from myspace to facebook to instagram over the past seven years. Who is next?

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Forecasting ecommerce multiples at exit

The Equity Kicker

1-800 Flowers, meanwhile is valued at 0.6x Mahesh Vellanki from Redpoint put up an interesting post yesterday about ecommerce valuations.

Twitter Link Roundup #246 – Small Business, Startups, Innovation, Social Media, Design, Marketing and More

crowdSPRING Blog

A Refresher on Net Present Value – crowdspring.co/11LJvw6. I hope you enjoy! 15aYQbM. 1zJjEjL. 1qW98Xf. 159KAQE. 1CzjykC.

From the Vault: 7 biases that can effect your decision making

crowdSPRING Blog

Remember that your counterpart in any negotiation may present information that is self-serving, so look skeptically at the particulars.

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Which Numbers Matter Most?

Fresh Inc.: The Staff Blog

The best rule of thumb is to use the net present value of your customer life time value (CLTV).

No. 1 Reason Acquisitions Fail

Fresh Inc.: The Staff Blog

If you consistently overpay for a series of acquisitions, you will systemically destroy shareholder value. Why do acquisitions fail?

Website Valuation Methods

Blogtrepreneur | Entrepreneur Blog

Website Valuation: How to determine Website Value. Perhaps you’re not sure how to go about determining your website’s value? Even the most traditional of assets – say, houses for example – are hard to properly value. Fair Value Multiple. How might you value that business? Author Bio. Website Valuation Methods.

Business Model Analysis, Part 6: LTV and CAC

Platforms and Networks

The first post in the series presents a comprehensive list of issues entrepreneurs should consider when designing a business model. years.

NPV 5

Startup anti-pattern: platform risk

High Contrast

It’s rewarding work but it also usually is plumbing work that generated little business value. I knew a startup with a neat idea on how to provide significant value on top on the Salesforce platform APIs. Also, platforms that satisfy the ecosystem test help the startups that bet on them make money. That is, until they don’t. Swinging.

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Risky Business? Not So Much, It Turns Out

Fresh Inc.: The Staff Blog

Despite its negligible additional risk and clearly superior net present value, the second option is rarely pursued.

Performance Round-Up: 11/23/2014

Leveraging Ideas

A refresher on net present value [ HBR.org ]. Q4 has been busy, so I slipped with link updates for a couple weeks. Performance

Building a Growth Agenda? Keep It Simple

Fresh Inc.: The Staff Blog

A short list of high-value opportunities will keep you focused on what really matters. Here are three steps to get you there: 1.

NPV 3

Look Inside MidwayUSA's Baldrige Award Application

Fresh Inc.: The Staff Blog

The Malcolm Baldrige National Quality Award is a kind of decathlon gold medal for organizational excellence, and here's how MidwayUSA won it.

We Will Be the Best-Run Business in America

Fresh Inc.: The Staff Blog

The gold one, presented to him by the National Rifle Association, honors decades of support for sports shooting. He's the wizard of gunsmithing.

Savanna

Launching Tech Ventures

Using a discount rate of 20%, the net present value of a user is $105. In short: we are Lyft for Barbers. Figure 1. Onward.

eCommerce RULE #2: Customer Lifetime Value (CLTV) is your new pulse

Adventurista

The textbook definition of CLTV is the net present value (NPV) of the profit from a customer’s purchases.

NPV 1

Professor Clayton Christensen and the job your product does at Business of Software 2011

Business of Software Blog

This is probably one of the most important talks you will ever see if you are an entrepreneur in any discipline. It was the opening talk at last year's Business of Software. Registration for  Business of Software 2012 , (October 1-3rd October) is now open! ' with our compliments. We have posted a transcription below the video. Sp8: ?

Bill Janeway Warburg Pincus | Productive Bubbles | Video Slides Transcript | BoS Europe 2015

Business of Software Blog

What it leads to in is that locally rational behavior produces an incoherent systemic breakdown and particularly for a bank when asset prices increases the value of its asset rises. Finance theory tells you that there is a fundamental value of every share. It’s the expected net present value of the future cash flows.

Tips for small business: 7 biases that can effect your decision making

crowdSPRING Blog

Remember that your counterpart in any negotiation may present information that is self-serving, so look skeptically at the particulars. In economic valuation, past cost can never be a factor for arriving at a value, and formulas such as NPV (net present value) will never take into account money which has already been spent.

eCommerce RULE #3: The 6 “Cs” are your vital signs: Ignore them at your peril!

Adventurista

Company Net Promoter Score , or NPS, is a customer loyalty metric developed by Satmetrix, Bain & Company, and Fred Reichheld. Churn.

NPV 1

The art and science of valuing websites

The Next Web

Once you decide to get your site in shape for a sale , it’s important to value it properly. What drives value? The income approach.

A Hedge or Bet? A Matter of Definition

Fresh Inc.: The Staff Blog

Since the expected value of this investment is zero, you either lose your $50,000 investment or have a net gain of $50,000 (i.e.,

Asset Management Is A Bizarre Industry Ripe For Disruption

David Teten

Disruptable Pattern #1: The asset management industry collectively adds minimal value to its clients above the option of investing in index funds.

An Angel Investor’s Thoughts on Valuation

Ask the Angels

Lets start with the definition as presented at Investopedia.com (one of my favorite resource sites). Typically, I hear the “multiple” referenced more than ROI in Investor presentations. Two other statistics that also come up are Net Present Value (NPV) and Internal Rate of Return (IRR). By Bob Aholt. THE RAISE.

NPV 0

Startup Blog: Getting Rights to the Technology

Taffy Williams

Remember this will be a business and that you will always have to present it that way. Presentation 101 – Please do not do this!

IP 0

Burnham's Beat: Vonage: It's All About Customer NPV

Burnham's Beat

As I outlined in a mid-2004 post , the key metric for Vonage is not current period Net Income, but Net Present Value (NPV) per customer. Net acquisition costs per customer. Valuation: Measuring and Managing the Values of Companies. Burnhams Beat. Articles on Technology and Finance. About Bill. Blog Roll.

IPO 0

Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

You validated our business model and added huge value to our efforts. 1st 2008 with a base value of 100.00 Cracking The Code. Really.