Remove Revenue Remove Sales Cycle Remove SEM Remove Viral
article thumbnail

Startup Killer: the Cost of Customer Acquisition | For Entrepreneurs

www.forentrepreneurs.com

As I ask questions to understand the thinking, what usually comes out is something vague along the lines of web marketing, and/or viral growth with no numbers attached. A quick look around all the B2C startups shows that, although viral growth is often hoped for, in reality it is extremely rare.

article thumbnail

Cracking The Code: Unveilling of the Bessemer's 10 laws of Cloud.

Cracking the Code

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. Popular Media: the key to viral marketing. Support, support, support! Mind the GAAP!

article thumbnail

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

Cracking the Code

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!