12/ My favorite example is virtual goods, where GAAP says you have to pro-rate revenue for e.g. a magic sword over expected avg player life.
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Replying to @patio11
13/ ACV means annual contract value or average contract value. Chiefly in SaaS it quickly communicates your market and sales strategy.
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14/ If you say ACV $250 / $5k / $50k / $1.5 million then SaaS folks can pretty much draw out your entire org chart using only that info.
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15/ For example, if your ACV is in the $50k+ budget, I will bet dollars to donuts that Sales is bigger than Engineering and has more pull.
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16/ LTV (lifetime value) is a *prediction* of average revenue (across all customers or a segment) over customer lifetime.
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17/ LTV is really easy to estimate (average billing per interval divided by churn per interval). It should be tattooed on your consciousness
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18/ LTV lets you make consequential decisions about e.g. ad spend (rule of thumb: cost of acquisition < 1/3 LTV => good), sales effort, etc.
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19/ Think that's it for the moment. Have questions? Fire away.
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Beeminder Retweeted Stripe
@patio11 You've recommended@churnbuster before. Does@stripe's new auto-update feature (https://twitter.com/stripe/status/557990123414245376 …) partly/mostly obviate it?Beeminder added,
1 reply 0 retweets 1 like
@churnbuster @bmndr I'm quite happy with them just for being fire-and-forget "gentle but persistent reminders" for busy pro customers.
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