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Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

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. So if you paid $100 for a customer who converted via a Facebook ad or Google search ad (SEM) that is not your CAC. I’m guessing much of this was 101 to many readers.

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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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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. Ideally, such ads should clearly articulate the value proposition including the price.

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