Mike's notes.
We’ve looked at a few different customer acquisition cost strategies : F1 racing, Zappos’s mistake, and P.S. I love you, from Hotmail. The CAC ideal is to acquire the best customers for free. That’s ideal. L.L. Bean started when Leon Bean mailed his catalog to out-of-state hunters. Michael Dell sold newspaper subscriptions, but sourced his … Continue reading Selling shirts, planning planes
CAC can be a ‘hard’ expense: Zappos, college students, or Peloton. CAC can be ‘soft’ too: F1 racing or American Pickers merchandise. Another ‘soft’ form is take rate. The take rate on Amazon is 15%. AirBnb hosts pay 3%. Psychics pay 75%! That’s huge!! Maybe. Huge relative to what? Mills Snell smartly asks just that. … Continue reading Psychic CAC
My eleven-year-old daughter requested “Pirate Booty” after having it at school. Those bright buccaneers put the JTBD right on the box. Parents buy these “lunch bags” to pack for their children. You’re not buying a snack. You’re buying being the parent who packs their kid’s lunch. Pirate Booty also commandeered a clever CAC. They earn … Continue reading Pirate Booty JTBD
CAC is the most interesting problem in business because a low CAC makes for interesting unit economics. And, CACs can have unconventional solutions. “For kids that have taken the SAT, schools can buy their names for fifty cents a name from the College Board, which oversees the test. Schools get the name and address of … Continue reading Fifty cent students
Mike Maples Jr. worked for a software company that enabled telecom companies to offer broadband service. Mike’s job was sales.For many telcos it wasn’t even a buy or build? question because they were in the hardware business: driving tucks, laying cable, and climbing telephone poles. But not every company was a potential client. “I started” … Continue reading “Going for the no”
The Waiter's Pad 