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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Consumers Only Using Browser Based Software

Posted by Jeff Lu on April 8, 2009

By Scott Rosenberg

I was on Killerstartup.com today and the first company OrSiSo.com sounded interesting so I decided to watch a video about the product on the company’s website.  In short,  they are a social media aggregation platform, sort of like friendfeed but better.  I forwarded the link to my coworker and I told him about the merits of the product.

Now you would think that the very next thing I did was use the product… but I didn’t because there was a problem.  The product was absolutely free but I was still unwilling to use it because I had to DOWNLOAD it.  I informed my coworker of this minor detail and his response was, “oh, in that case it’s not very interesting”.

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