2. Let’s say you have an idea for transcription
service for Masters/PhD/University Researchers
as your Primary Customer.
• Market Size 8MM
• On average each researcher will do 10hrs of research that requires
transcription/year = 80MM hrs of transcription in that market in North America.
• You charge 15$/hr of audio.
• Average Length of Study 4 years = 10hrs/yr x 15$/hr x 4yrs = $600/customer
(average) Margin 50% = $300
• LTV/Education Customer = $300. (Do they add to network effects? Referrals?)
Latent value can be assumed but not included here.
The World Exchange Plaza Toll Free: 1 866 964 6931 Providing enterprise level order fulfilment, real-time
1150-45 O’Connor Street Facsimile: 1 866 391 5954 provisioning and life-cycle management with custom
Ottawa, Ontario, K1P 1A4 Email: info@10Count.ca software solutions.
Canada Web: www.10Count.ca Rob: Rob@10count.ca | Matt: Matt@10count.ca
3. CPA: Cost Per Acquisition
• Lets say we’re using the FB example above. The cost per
click is $1.00.
• That means I get 300 clicks before I’m loosing money if we
look at LTV alone
• Can I pay for advertising (acquisition method) and still get
a return ?
• If your Cost Per Acquisition is lower than Your LTV step on
the Gas. You have yourself a money making business.
The World Exchange Plaza Toll Free: 1 866 964 6931 Providing enterprise level order fulfilment, real-time
1150-45 O’Connor Street Facsimile: 1 866 391 5954 provisioning and life-cycle management with custom
Ottawa, Ontario, K1P 1A4 Email: info@10Count.ca software solutions.
Canada Web: www.10Count.ca Rob: Rob@10count.ca | Matt: Matt@10count.ca
4. CPA Continued:
This is where smart marketing/product development comes in:
Key Free CPA mechanisms:
• Organic Search
• Word of Mouth
• Virality and Network Effects
The World Exchange Plaza Toll Free: 1 866 964 6931 Providing enterprise level order fulfilment, real-time
1150-45 O’Connor Street Facsimile: 1 866 391 5954 provisioning and life-cycle management with custom
Ottawa, Ontario, K1P 1A4 Email: info@10Count.ca software solutions.
Canada Web: www.10Count.ca Rob: Rob@10count.ca | Matt: Matt@10count.ca
5. LTV vs CPA is our Key Metric
Once we have an idea:
• We’ve validated people are looking for it or are interested
• We’ve defined some acquisition methods and have a
handle on LTV
• Lets RockBuild!
See: Bootstrapping a Business
The World Exchange Plaza Toll Free: 1 866 964 6931 Providing enterprise level order fulfilment, real-time
1150-45 O’Connor Street Facsimile: 1 866 391 5954 provisioning and life-cycle management with custom
Ottawa, Ontario, K1P 1A4 Email: info@10Count.ca software solutions.
Canada Web: www.10Count.ca Rob: Rob@10count.ca | Matt: Matt@10count.ca
