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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.

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10 Things I Hated About Your Business Pitch

Up and Running

You focused on internal rates of return and net present value. Iā€™m glad they taught you internal rates of return and net present value in business school. They are assumptions cascading on assumptions, presented as if they were statistical truth.

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

crowdSPRING Blog

We do like to talk about logo design , web design , startups, entrepreneurship, small business, leadership, social media, marketing, economics and other interesting stuff! A Refresher on Net Present Value ā€“ crowdspring.co/11LJvw6. Tutorials & Web Design Resources | Designrfix ā€“ crowdspring.co/11pDkxU.

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

crowdSPRING Blog

We do like to talk about logo design , web design , startups, entrepreneurship, small business, leadership, social media, marketing, economics and other interesting stuff! A Refresher on Net Present Value ā€“ crowdspring.co/11LJvw6. Jason Santa Maria, On Web Typography | Print Magazine ā€“ crowdspring.co/15b2lPG.

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The art and science of valuing websites

The Next Web

It calculates value on the bases of revenue that the buyer can expect to earn from the site, taking into account the risks that are involved in operating it. The asset approach to valuation focuses on the market value of whatā€™s included in the sale itself. Asset approach.

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

Cracking the Code

Keep up the blogging and web casts and we will keep listening and growing. To answer the second question and make sure you are building a profitable business, the key indicator to look at is the Customer LifeTime Value (CLTV). We bill on an annual basis for half of our service and were willing to give up to 0.5 to acquire the client.