for the vast majority of entrepreneurs, the creation of an e-commerce company, and can have 10 million to $20 million in revenue is not a very difficult thing. But surprisingly, many people think that e-commerce companies are not worth the price. In contrast, if you create a software as a service (SaaS) company, although the level of profitability is difficult to reach the level of tens of millions of dollars, but people will think you are worth the price.
in this week’s meeting of the board, I saw one of our portfolio company JustFab, this company has even made me feel somewhat contradictory, but also some confusion, one of the reasons is their so-called leverage multiplier marketing. The vast majority of retail companies (whether traditional or online) must invest a lot of money in the market in order to obtain a certain number of consumers. Small e-commerce companies can not invest a lot of money in marketing, but the premise is that you must have the following features, for example, your company’s products to fill a gap in the market, or your product with the one and only the specific consumer groups in the market, only in this way, you can open the market with low the sales price, to obtain viral expansion. However, with the development of the company, you can’t wait for the consumer to inform their friends, this kind of word-of-mouth marketing to promote your products, you have to do is, multi-channel propaganda and win more consumers.
is very important to create a killer enterprise that has a user favorite, and a high degree of satisfaction (so that users will be more likely to recommend to others) products. On the scale, a great company and a makeshift company is also very different, in a few years ago, those excellent don’t even need to advertise their products in the media can make enterprises develop rapidly. It does sound like a good thing, but today it is obviously not applicable. When the growth of enterprises in the organic growth of stagnant growth, or to increase the payment of media as the main growth vector in the development process, often need to look further.
customer acquisition costs, which is why the retail industry is increasingly difficult to do one of the reasons. What is the value of life for a retail customer?. For example, such as software as a service industry, the use of order model is very promising.
here, I would like to cite a specific example of the good, such as the above table shows JustFab’s business in North america. I revised the exact figures, but it was really large. ) as you can see, the annual income growth rate of the company close to 2 times, but if the vertical comparison of the company’s advertising investment, will be found in the basic and unchanged from the previous year, in fact, the company’s investment in advertising in the past three years has greatly increased. For the use of large-scale virus awareness