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Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

The reason one would accept losses is when they are investments in fueling faster growth. If you acquire 10 customers a month at $100 per customer and this scales to 100 customers at the same price you may make assumptions about 1,000 customers that don’t hold. One big, beginners mistake people make in LTV is to measure revenue.

Metrics 150
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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). What would it take in investments to acquire and retain traffic to support these businesses?

Startup 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. Affiliates invest the up-front marketing expenses required to attract customers.

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