Revenue makes the rocking world go ‘round

Building your first revenue model

The Golden Ratio

CAC / LTV*
The Golden Ratio

CAC / LTV*
Build a Startup in 5 (not so) Easy Questions

Who do I provide value to?

Who will pay me?
What do I charge for?
How do I find new paying users?
What costs must I bear?
Drive the Business

Who do I provide value to?

Who will pay me?
What do I charge for?
How do I find new paying users?
What costs must I bear?
Unit of Growth

Who do I provide value to?

Who will pay me?
What do I charge for?
How do I find new paying users?
What costs must I bear?
Scale Limiters

Who do I provide value to?

Who will pay me?
What do I charge for?
How do I find new paying users?
What costs must I bear?
Who do I provide value to?
Who will pay me?
Who will pay me?

1,000 10,000 100,000 1 MM 10 MM

What do I charge for?
How do I find new customers?
What costs must I bear?
Revenue Models
Set the goal: build your first budget

1. Start with current assets on hand

2. List fixed & variable costs for each month

a. Create a running monthly total for costs & debt accrued

3. Bake in assumed billing per new signup & set monthly goals

a. How many signups do you need a month to break even?

b. Are you outside funded or bootstrapping?

Keep in mind

● You won’t get it right the first time

● Test data is 10x better than instinct
● Pareto’s principle applies
● NEVER STOP ASKING: What is my CAC/LTV?
Thank You!
tlongino@crowdtamers.com
savvycal.com/crowdtamers