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Not because they didn’t want to do Pay-per-click (they are huge buyers of SEM) but because they didn’t want other people to know what they paid for clicks! IdeaLab has created 75 companies, leading to 8 IPOs, 35 or so acquisitions and more than 5 companies worth in excess of $1 billion.
Customer Acquisition. How many through SEM? per click on an SEM basis this is NOT your cost to acquire a customer – you need to add conversion rate. Those two things together would lower your acquisition costs nearly in half to $6.11. How many adds came through organic SEO? How many through affiliate deals? per customer!
In essence Muhammad thinks the “growth hacking” is a charlatan term for online marketing that consists of a bunch of everyday tasks that all online businesses should be doing: SEO, SEM, Content Marketing, Social Media, Referral Marketing, etc. “How many legs does a dog have if you call the tail a leg?
Fantastic post by Christian Gammill - Startup Delta Force… From a competitive perspective (e.g. all the other folks out there that will try to enter the same market) the barriers have been dropping over the last few years.
In the same year they won Business Insider’s Startup competition. RedBeacon went on to sell to HomeDepot in what was considered a very successful acquisition on all sides. But Ethan had left by the time of the acquisition. RedBeacon was the 3rd winner (year 1: Yammer, year 2: Mint.com) – not bad company. Nice sweep!
Almost every online business I know (eCommerce, online software, mobile games) invests heavily in “customer acquisition” This includes investments often not properly measured (SEO, PR, Social) as well as costs that people measure more precisely (advertising, SEM, FB CPA/CPI ads). Take for example, an eCommerce company.
After a year in the market, MakeSpace was growing rapidly and our biggest issue was CAC (customer acquisition costs) relative to payback period (when we get our marketing investment back) and relative to LTV (lifetime value). You may have paid marketing: SEM, Social Media Ads, Banner Ads, email lists, etc. Competition.
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