Why Misunderstanding Startup Metrics Can Cost You Your Business
Mark Suster
80144

Excellent post, and I’d especially emphasize one point you touched on at the end of your CAC section — including employee costs in CAC! I wrote a primer aimed at helping non-finance people understand this stuff and how to implement some of the concepts you discuss in their metrics, would love to have you check it out: http://opstarts.com/blog/a-crash-course-in-saas-cogs-gross-margin-ltv-and-cac/

Another post I’d recommend as a followup to yours is Dave Kellogg’s excellent piece exploring the meaning and value of Payback Period, and why to use it as a metric to measure risk as opposed to value. https://kellblog.com/2016/03/17/cac-payback-period-the-most-misunderstood-saas-metric/

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