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Warning! The entire article is filled with arcane finance newspeak and obscure acronyms! tl;dr: 1. Have a high LTV:CAC ratio (what???) 2. Have high viral co-
by qwerty_asdf 13y ago
Warning! The entire article is filled with arcane finance newspeak and obscure acronyms!
tl;dr:
1. Have a high LTV:CAC ratio (what???)
2. Have high viral co-efficient. (okay.)
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LTV = Loan to value, a ratio of the outstanding debt on a property to the market value of that property. (or is it "Lifetime value" of a customer?)
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CAC = Customer acquisition cost is the resource a business needs to allocate in order to acquire an additional customer.
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And, oh yeah, just "be viral".
- pytrin 13y agoLTV = Life time value. Have a high ratio between customer acquisition costs and life time value in order to be profitable at scale when CAC goes up. Hope that makes sense now.
- pkaler 13y ago> Warning! The entire article is filled with arcane finance newspeak and obscure acronyms! Boris Wertz is a SaaS/e-commerce investor. LTV, CAC, ARPU, churn, etc are pretty standard metrics for those types of businesses. Here is a good guide to SaaS Metrics: http://www.forentrepreneurs.com/saas-metrics/ http://www.forentrepreneurs.com/saas-metrics/ Here is Bessemer's SaaS Reporting Template: http://www.bvp.com/system/files/reporting_saas.xls?download=1 http://www.bvp.com/system/files/reporting_saas.xls?download=... The Smart Bear blog has a good series of SaaS metrics articles: http://blog.asmartbear.com/?s=saas+metrics http://blog.asmartbear.com/?s=saas+metrics