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Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

In an eCommerce or Internet Services business it is often the marketing costs (if purchased online) and in an enterprise software company it is often marketing plus enterprise sales reps. So if you paid $100 for a customer who converted via a Facebook ad or Google search ad (SEM) that is not your CAC. Payback Period!!!”

Metrics 150
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Pour And Stir II – Managing Your Cost Per Customer

InfoChachkie

However, Search Engine Management (SEM) is not a “set and forget” exercise. You must apply dedicated resources to your SEM efforts, either in-house or via a trusted third-party partner, in order to maximize customers acquired from this channel. Some might be from banner ads and others may arise from an email campaign. .

Customer 164
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How to Decrease the Odds That Your Startup Fails

Both Sides of the Table

It says that selling an airplane ticket for $500 and getting paid a $5 fees by the airlines (1% gross margin) is not the same thing as selling $500 of software that you built (>90% gross margin). Sam did all this analysis before even deciding to build V1 of his software and before we put serious money behind him launching.

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