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Your business has a high viral co-efficient (or perhaps even a network effect) that lets you amass users cheaply without worrying too much about the monetization per user or spending money on paid acquisition. High LTV can usually be found in transactional or subscription businesses.
If you're working on the Sticky Engine of Growth , you're focused on very different metrics from those that you care about in the Viral Engine of Growth. Here's what they have to say about churnrates in SaaS businesses: The best SaaS sites or applications usually have churn ranging from 1.5% to 3% a month.
Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. You sell a product that requires an internet connection and a web browser for access, which means your prospects are online! Cracking The Code. Friday, October 10, 2008. The Bessemer 10 laws of SaaS - Fall 2008 Release.
Meyler Capital is taking the analytical rigor of modern internet marketing and applying it to fund marketing. . The self-assessment methodology, pioneered by Village Capital, is called VIRAL, for “Venture Investment Readiness and Awareness Levels.” . Other VCs use Contently * or Social Native * to create relevant content.
But notice what’s not listed: messages sent per person, churnrates of active users, or activation rate of new user. Is the company growing because of an amazing viral loop paired with a strong engagement loop? Is the company growing because of an amazing viral loop paired with a strong engagement loop?
Inbound.org is self-described as “the internet’s smartest marketing community” Everything Inbound marketing is discussed there. Churnrate is proportional to the distance between sign-up and value. via Inbound.org). Inbound.org.
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