1) Owners of web hosting companies often incorrectly apply valuation formulas meant for other industries and are disappointed when offers come in lower than expected. Valuation requires considering the specific characteristics of the business.
2) While design services can reduce churn and increase sales to existing hosting clients, the revenue is one-time rather than recurring like hosting, so it provides less value when selling the business.
3) Investing in an internet data center can greatly increase the long-term value of a company but reduces short-term liquidity. Smaller hosts typically start by co-locating and later acquire their own data center space.
If More Were Less - Ensuring Your Affiliate Sales Are Truly Incrementalowenhewitson
The document discusses ensuring that affiliate sales are truly incremental by:
1. Defining incrementality and the need for cross-channel reporting to understand it
2. Examining cashback programs and voucher codes to see if they generate new or existing customers
3. Looking at behavioral retargeting and search marketing campaigns to evaluate which portions are incremental
The key lessons are to assess incrementality in terms of value over just volume, consider multiple customer journey touchpoints, and demand transparency from publishers about their audiences.
1) Owners of web hosting companies often incorrectly apply valuation formulas meant for other industries and are disappointed when offers come in lower than expected. Valuation requires considering the specific characteristics of the business.
2) While design services can reduce churn and increase sales to existing hosting clients, the revenue is one-time rather than recurring like hosting, so it provides less value when selling the business.
3) Investing in an internet data center can greatly increase the long-term value of a company but reduces short-term liquidity. Smaller hosts typically start by co-locating and later acquire their own data center space.
If More Were Less - Ensuring Your Affiliate Sales Are Truly Incrementalowenhewitson
The document discusses ensuring that affiliate sales are truly incremental by:
1. Defining incrementality and the need for cross-channel reporting to understand it
2. Examining cashback programs and voucher codes to see if they generate new or existing customers
3. Looking at behavioral retargeting and search marketing campaigns to evaluate which portions are incremental
The key lessons are to assess incrementality in terms of value over just volume, consider multiple customer journey touchpoints, and demand transparency from publishers about their audiences.