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Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

= profitable and companies like Amazon who chose to focus on growth > profitability were not losing money on each book sale (ie they were gross margin positive). It’s funny how scarcity of capital can focus one’s mind. So if you paid $100 for a customer who converted via a Facebook ad or Google search ad (SEM) that is not your CAC.

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

InfoChachkie

Google’s market capitalization is in the stratosphere for a reason – keyword search advertising is highly effective. However, Search Engine Management (SEM) is not a “set and forget” exercise. However, you are only paid for ads that generate sales. Such actions include sales, trials, leads, downloads, etc.

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). Marketing with long payback is precisely what requires venture capital. billion in sales and thus controls less than 10% of the market.

Startup 150