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The company was profitable pretty much from day one. We don't have a free tier, so all of our customers are paying customers. We made sure that our initial pric
by podman 15y ago
The company was profitable pretty much from day one. We don't have a free tier, so all of our customers are paying customers. We made sure that our initial pricing structure ensured that, in almost all cases, the users at least covered their own costs. We've added four pricing tiers since launching and this still pretty much holds true (except for the lowest tier).
To maintain growth, we've mostly marketed our site using PPC though AdWords. So far, even without much optimization, it seems to be working fairly well. When I have more time to devote to it, I'll be able to spend more time optimizing our ad campaign and explore other methods of marketing.
- jarrettcoggin 15y agoWhat methods did you use to determine how much the average user cost?
- podman 15y agoBefore we launched, we had hard data from my old company about how much the users cost and how many resources they used (encoding, streaming, storage, etc.) We were able to use those numbers to calculate what our costs would be per user.
- blakeperdue 15y agoCan you share some basic marketing numbers? What price range is your PPC? What % of clicks convert? What is your customer's total lifetime value? Thanks!
- podman 15y agoThe average CPC for last month was around $4.21. The conversion rate was around 4.86%. I don't feel comfortable giving away the CLV, but it's considerably higher than the cost of acquisition.