Wednesday, November 25, 2009
Onstartups - Dharmesh Shah
Recently I came across this amazing blog from Dharmesh Shah [http://onstartups.com]. It is simply an awesome knowledge base on experiences in and around startups from Dharmesh. Dharmesh recently gave a session [Insights from and around MIT] and I would strongly recommend it.
I found following two parameters from his talks/blogs pretty interesting:
1. COCA - Cost Of Customer Acquisition - This is the cost/expense involved in acquiring a new customer.
2. LTV - Life Time Value (of a customer) - This is the revenue made from an acquired customer.
As long as your LTV > COCA means you have potential to make profit.
I found following two parameters from his talks/blogs pretty interesting:
1. COCA - Cost Of Customer Acquisition - This is the cost/expense involved in acquiring a new customer.
2. LTV - Life Time Value (of a customer) - This is the revenue made from an acquired customer.
As long as your LTV > COCA means you have potential to make profit.
