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. This concept, which appears on the surface to be quite benign, is typically used to compare the costs of acquiring [.]. advertising Internet Uncategorized Venture Capital Web/Tech LTV

6 Demand Generation Metrics To Quantify Marketing ROI

Startup Professionals Musings

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

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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.

Forecasting ecommerce multiples at exit

The Equity Kicker

1-800 Flowers, meanwhile is valued at 0.6x At the end of the day a business is worth the net present value of future cash flows, EBITDA is a good proxy for cashflows, and future EBITDA is a function of revenues today, revenue growth and EBITDA margin.

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. Thanksgiving is past and Christmas, Hannukah, Kwaanza and New Years are fast upon us, so what better way to prepare than with a taste of the toally bizarre.

10 Things I hated About Your Business Pitch

Up and Running

I’m talking about the 10-20 minute slide presentations and accompanying questions and answers. . Read Resonate (better yet, get the new iBook version , which is sensational), or Presentation Zen , or just at least the blog post Really Bad Powerpoint. Internal rates of return and net present value. ” I hate hearing about a $43 billion market, and even more so when you present a sales forecast validated by getting some percentage of that market.

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Twitter Link Roundup #247 – Small Business, Startups, Innovation, Social Media, Design, Marketing and More

crowdSPRING Blog

8 Qualities of Leaders Who Deliver Value Every Day – crowdspring.co/1A8QSK8. A Refresher on Net Present Value – crowdspring.co/11LJvw6. “Make it snow,” says Captain Picard!

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. Of course, asset management firms also sell peace of mind, tax minimization, and other services besides just increasing the value of your assets.).

The art and science of valuing websites

The Next Web

In an online marketplace like Flippa , we’ve seen buyers and sellers try out the full gamut of approaches for valuing websites — some more creative than others. Once you decide to get your site in shape for a sale , it’s important to value it properly. What drives value?

Should I flip or should I build?

BeyondVC

Usually at this point in time, an entrepreneur can maximize short-term value as acquirers will buy more on vision and technology than on business fundamentals. It seems that everyday there is a new annoucement of a tiny startup being bought by a large company.

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. Einstein once said, “Common sense is the collection of prejudices acquired by age eighteen.&#

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

Cracking the Code

For example, you can provide a solution to automate marketing, but if the customer doesnt know some key best practices for how to effectively market online, then its unlikely that theyll get a lot of value out of a marketing automation solution. 1st 2008 with a base value of 100.00