4 ms·
Good article. I know of a startup who had revenue as a KPI but did not include ad-spend or margin. As a result they hit their quarterly revenue target (and got
by petenixey 13y ago
Good article. I know of a startup who had revenue as a KPI but did not include ad-spend or margin.
As a result they hit their quarterly revenue target (and got their quarterly bonuses) by amplifying their ad-spend to hundreds of thousands a month and buying customers for 110% of what they made from them.
This might seem like madness but when people's salaries and jobs depend on it, the line "what gets measured, gets done" is as true as true can be.
- jacquesm 13y agoThis sort of thing happens with alarming frequency. Growth at any cost by people that are just concentrating on revenues without realizing what running a business is eventually about. If you are funnelling cash into your marketing losing more on every deal you will die while you grow. Growth isn't everything.