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Probably every one of you who has a business and a website have been approached through email or personal contact, and asked to spend money on Search Engine Marketing (SEM). SEM is sometimes called “buying your way into search results.” Cost per action (CPA). Tags: entrepreneurs startups. Marty Zwilling.
Cost per action (CPA). In this more popular model these days, advertisers do not pay for each appearance of the ad, but only when a user clicks on an ad and is redirected to the advertiser website. For sites displaying the ads, this is called pay per click (PPC).
If all you ever do is create YouTube content then I agree – that’s not a viable startup business. This kind of spend happens all day long inside startup companies and 100% of the spend on attracting customers is a cost. But you don’t need to spend money on SEM. Startup Lessons' But think of this.
Master of 500 Hats: Startup Metrics for Pirates (SeedCamp 2008, London) This presentation should be required reading for anyone creating a startup with an online service component. Otherwise, your CPA will get driven up close to or exceeding your LTV, and you cant grow profitably anymore. Choose one. One last thought.
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