Cost of Acquiring Customers Rising

Posted by Jeff Lu on May 14, 2009

I came across a Bessemer presentation, made by Philippe Botteri and Byron Deeter at this year’s DreamForce, which I found to be really insightful for SaaS companies.

The presentation is long but it’s worth it.  The first 20 minutes is on valuation metrics for SaaS companies and the next 20 are on the macro-economy.  I didn’t watch the final 20 minutes which was on accounting topics relevant to SaaS companies.  A pdf of a similar presentation can be downloaded here.

This post will cover Customer Acquisition Costs and how the current economic climate has affected the ability for SaaS companies to acquire customers at an acceptable ROI.

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