When I first got a demo from Cahan and co-founders Didier Hilhorst and Rob Johnson, I was amazed to the point where I was dumbfounded. Not surprisingly, IntoNow has already received funding from Greylock Ventures and Redpoint Ventures — though they won’t disclose how much. Two-thirds of global marketing professionals report friction between IT and marketing for a variety of reasons, while the other third feels the departments are in sync, according to [pdf] a new survey from Alterian. Every quarter Microsoft reports earnings, and every quarter it reports a massive loss in its online operations. Yesterday, we compared the total career earnings of LeBron James and Alex Rodriguez, including salaries and endorsements.
As we can see below, despite his troubles in 2010, Tiger Woods was far-and-away the highest paid athlete of the past year.
While Microsoft‘s online division remains a money pit, the gaming division is starting to make a lot of money for Microsoft. Considering the company lost money for years on the Xbox (we’re only showing part of the money burn), this is great news for shareholders, and it provides a sliver of a reason for optimism about the online division. After more consideration, this data seem a little strange, specifically because it’s not clear whether or not Netflix is taking into account different tiers of internet service. As we use a number of CDNs, and our clients can adapt to changing network conditions by selecting the network path that’s currently giving them the best throughput, Netflix streaming performance ends up being an interesting way to measure sustained throughput available from a given ISP over time, and therefore the quality of Netflix streaming that ISP is providing to our subscribers. It’s a very interesting read, and pretty informative if you feel lost when everyone starts dropping the Hummingbird or Snapdragon names. For your small business, you need a marketer who knows the small business marketing needs of your area.
Sometimes you need complete marketing management, but other times you may need one design project or specific customer research. Zoo in a Jungle Marketing is a full-service, Ohio-based marketing company that will work with you to develop a marketing budget to fit your needs. Choosing Zoo in a Jungle Marketing for your small business marketing needs is a smart move for any growing small business.
The Entrepreneur’s Achilles Heel: OptimismTo be an entrepreneur requires great optimism, and a very strong belief in how much customers will love your product.
A common scenario is an entrepreneur that has dreamt up a cool new service that they can offer via the web. A quick look around all the B2C startups shows that, although viral growth is often hoped for, in reality it is extremely rare. Far more common is a need to acquire customers through a series of steps like SEO, SEM, PR, Social Marketing, direct sales, channel sales, etc.
Some examples of CAC calculationsFor example, if you are using Google Ad Words to drive traffic to your site, take a look at the following interactive spreadsheet. How about the direct field sales force cost?One of the more interesting things that this model shows is how rapidly cost of customer acquisition climbs If your leads require human touch to convert them, (compare cell B23 with cell B22.) This human touch can be as light as email follow ups, or as much as inside sales people doing multiple sales calls and demos. This shows is that it is not unusual for the cost of acquiring a customer to be as high as $100,000. Lessons Learned – Business Planning StageMy advice to entrepreneurs working on a new business plan is to build a model similar to those above to estimate the cost of customer acquisition.
Aim to recover your CAC in < 12 months, otherwise your business will require too much capital to grow. In the early days of the business, you will not be able to accurately predict your conversion rates, and the viability of your entire business may depend on this.
The good news is that if you can monetize your customers at a higher rate than the cost to acquire them, you probably have a great business on your hands. Because a number of smart entrepreneurs realized the importance of lowering CAC, they created new business models such as Open Source, SaaS, Freemium, etc. These new business models focused heavily on how buying behavior has changed because of the power of the web. Use of a free product or service to attract web visitors, and aim for a viral spread as they tell their friends.
Use of a free trial, where the customer can easily download, or use a SaaS version of the full product to see if it works for them. Extensive use of software to automate all processes such as SEO, SEM, social networking, lead scoring, lead nurturing, CRM, etc. Metrics on all aspects of the customer acquisition process to find out what can be improved.
Balancing Monetization with CACThe way in which these techniques can work together with other techniques to drive up monetization (e.g.
Lessons Learned – Ways to reduce customer acquisition costsConversion rates play an extremely important role in your customer acquisition cost. List the common sales objections that come up in the sales cycle, and provide answers to these on the web site. If your customers are going to compare you to the competition as part of their process, consider doing this for them, with a section of your site that has a comparison matrix with appropriate check marks. If you have a light touch sales model, consider setting yourself the goal of a “Touchless Conversion”, i.e.
Options for products requiring High TouchThe toughest business models are those that employ expensive field sales organizations.


If you are currently using a field sales organization that sells direct, look at whether it is possible to sign up OEM deals with strategic partners to leverage their customer base and distribution power. Consider converting to a channel sales model at some stage in the lifecycle of the business. Another option is to evaluate whether you can move from field sales to inside sales people. ConclusionsIf you are entrepreneur planning your next business, you can’t afford to ignore the cost of customer acquisition. It is also important to ask yourself the question: can my business realistically expect to acquire customers for considerably less than the amount that I can monetize them? Once you have completed the product, you will want to familiarize yourself with all the latest techniques involved in the low cost sales model, or Sales 2.0.
From a funding standpoint, it is useful to know that your ability to raise capital will dramatically improve as soon as you have proven that you have a viable business model. Once you have proven out the business model, hit the accelerator pedal, and invest as much as you can afford. The B2B Sales Cycle: Does It Have to be A Long Agonizing Multi-Quarter Climb to Full-Earning Potential? Did steve harvey graduate from college myideasbedroom com Click for details 01 have you read steve s books did you take his advice from steve click for details watch the epic family feud fail that confounded steve harvey Did steve harvey graduate from college myideasbedroom com. Do you know cross tattoo designs for girls has become the most popular topics on this category? You see, the first thing they demoed the app on was a live broadcast of a CNN show featuring Hillary Clinton talking. But, of course, there’s always the possibility that a sneaky startup could try to get things perfectly aligned for a demo. So if I see a friend is watching a certain episode of a show, I can see that it’s currently on live TV and I could flip over to it.
They could team up with some consumer electronic makers to build their system directly into hardware.
Also not surprising is that those are two of the backers of Auditude, the video monetization startup which just raised a new round of funding and saw Cahan transition out as CEO earlier this month. Its new Intel 6 Series chipset, Cougar Point, has been found to have a flaw, something to do with the SATA controller. A study of over 8,000 willing individuals from Nielsen and Yahoo recently discovered that some 86 percent of mobile internet users tinker around on their devices while situated in front of the tube. In 2010, those two athletes were the most compensated athletes among the major team sports in North America. Last night the company reported $679 million in operating income giving it a trailing-four-quarter profit just over $1 billion. Your computer or set-top box doesn’t get the same exact connection every time, but the chart above is weighted to show you a broad average of speed available on each ISP. Zoo in a Jungle Marketing, headquartered in Cincinnati, Ohio, has the resources to be your affordable complete marketing department. Zoo in a Jungle Marketing offers completely scaleable options for Ohio small business marketing. Amanda Cullen is experienced in all aspects of marketing from strategy to design to implementation.
Unfortunately this same attribute can also lead entrepreneurs to believe that customers will beat a path to their door to purchase the product. As a marketing consultant to Venture Capital platforms in the past,  I have sat through many presentations like this, and in most cases the service is actually interesting and compelling. When it does happen, the associated businesses are usually extremely attractive, provided they have a way to monetize their customers.
This example shows a cost per click of 50 cents, and the resulting website visitors converting to a trial at the rate of 5%. I have seen this cost vary from around $400 to $5,000 per customer acquired, depending on the level of touch needed. So I recommend building an execution plan that focuses on finding out what these numbers will be as soon as possible in the lifecycle of the business. Think about your own behavior: if you are like me, you hate having to deal with sales people, and greatly prefer to do your own research starting with search engines, and leveraging free trials, on-line videos, blogs, reviews, and your social network. In particular, the best practices include using Inbound Marketing to build traffic, instead of paying for traffic with search ads.
Web traffic can be easily split so that parts are fed to different landing pages with different offers, and the resulting conversion rates measured. Some products are easily understood, while others may require a careful walk-through by a sales person.
The high salaries and commissions for sales people, sales engineers, travel costs, and office costs add up to an extraordinarily high figure. What generally works best here is allowing the OEM to sell only a base layer of your product with co-branding.
Many times this requires that you “prime-the-pump”, as most resellers won’t sell a product until they see clear customer demand.
Insides sales people are not only less expensive in direct salary costs, but also in travel costs.


The earlier you work on this the better, as many of the best techniques require you to build your product differently. You’ll want to grow the business as fast as possible before a competitor realizes what you have done, and tries to steal your market! It reads the sound waves and patterns of each television show (and a growing collection of movies as well) and matches it with a database they keep.
Or they could do some potentially interesting stuff with the viewing data to disrupt something like Nielsen.
A few of the IntoNow team members had been working there when they decided to spin this project off (though Auditude owns no part of IntoNow). It seems that Googling random facts, checking their Facebook news feed and seeing who has tweeted in the past 30 seconds were atop the list of activities to do while watching, but strangely, a full 20 percent confessed to search for more information about a commercial they recently saw.
Just as impressive as that (if not moreso), are the number of cellphone subscriptions worldwide, which has now crossed the five billion mark. If you want similar data with a bit more information (at least in terms of user satisfaction in specific locations), check out the previously mentioned Net Index. For each hour Amanda works for you, she dedicates high-energy marketing brainpower to your company. This frequently causes them to grossly underestimate the cost it will take to acquire customers.
What shocks and surprises many first time entrepreneurs is just how high the numbers are for CAC using these kinds of techniques.
Good numbers will enable you to raise funding easily, and bad numbers may indicate that this is not a viable business. And this is before you factor in the failure rate (the percentage of sales people hired that don’t become productive). Channel sales models usually only work when the company commits to them fully, and passes all orders through the channel, so be prepared for the loss of margin this will represent to your current order flow. Other advantages of inside sales people is that they are far more efficient due to remaining in one location, and can contact more people in a typical workday. We took this image on the net that we think would be probably the most representative images for tattoo design templates.
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I wasn’t sure how this was possible since the same Clinton sound clip could be playing on a number of different shows. It’s the biggest single activity that people do after working and sleeping, Cahan says.
All shipments have been stopped and a fix has been implemented for new deliveries, but it sounds like recalls will be starting soon for those with this ticking time bomb silicon within.
Hit the source link below (PDF) to be instantly bombarded with facts and figures, but first, refresh that TweetCaster feed. Nvidia’s Tegra 2 keeps up with the others as far as graphics processing, but really shines when it comes to battery performance. What the sheet shows is that each customer is costing you $100 in just lead generation expense.
Once others started to see the success these companies were having, they started copying the techniques. With certain complex products, this will need an on-site installation by a sales engineer, which sends costs through the roof. Owning the customer base is an important way to control your own destiny, and will also earn your company a higher valuation.
At a minimum, look at combining inside sales with field sales to improve the efficiency of field sales people. They’re monitoring 130 broadcast channels in realtime, 24 hours a day — all of which is stored and saved. And there’s a way to discover new shows that will be based on your social and interest graphs.
So when it does, there’s a lot of potential there in terms of what IntoNow could do with advertisers within the app. Any way you slice it, however, that’s quite a record of growth for the first decade of the 21st century.
OMAP seems to be a bit behind right now, though they’ll be coming out with some good competitors in the near future.
What if you could receive the same quality of work without the liability of hiring a new employee? For many consumer facing web sites, it can be hard to get the consumer to pay more than $100 for the service.
In addition to distribution power, these kinds of relationships solve the “safe choice” concern of many buyers, and can transform your business.



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