Both Sides of the Table

APRIL 26, 2016

So if you paid $100 for a customer who converted via a Facebook ad or Google search ad (SEM) that is not your CAC. But often this doesn’t tell the whole story because often companies are also spending money on PR and other marketing activities in order to support the sales process. I’m guessing much of this was 101 to many readers.

Metrics 150

Metrics Cost Acquisition Startup 150

Startup Lessons Learned

SEPTEMBER 22, 2008

is an elegant way to model any service-oriented business: Acquisition Activation Retention Referral Revenue We used a very similar scheme at IMVU, although we werent lucky enough to have started with this framework, and so had to derive a lot of it ourselves via trial and error. The AARRR model (hence pirates, get it?)

San Francisco 167

San Francisco CPA SEM CTO Hire 167

Cracking the Code

NOVEMBER 10, 2009

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. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation.

Software Review 48

Software Review Cloud Technical Review Sales Cycle 48

www.forentrepreneurs.com

FEBRUARY 2, 2010

Far more common is a need to acquire customers through a series of steps like SEO, SEM, PR, Social Marketing, direct sales, channel sales, etc. It appears that LTV should be about 3 x CAC for a viable SaaS or other form of recurring revenue model. For more on the topic of Viral Growth, refer to my blog post on that topic here.)

Acquisition 103

Acquisition Cost Customer Entrepreneur 103

Transformify

AUGUST 27, 2017

Your team is directly correlated with the valuation of your startup. It could be a digital marketing assistant to take charge of your social media accounts, a virtual assistant to organize your schedule across different time zones, or a SEM expert. Team comes first. It is your team that will save you, the entrepreneur, from a disaster.

Hiring 64

Hiring Software Review Burn Rate Startup 64

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