Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Untitled topic

news.ycombinator.com

Post reply on HN
Print view View original

101–110 of 138 posts

Re: undefined

#101

Post by TuringNYC »

tppiotrowski wrote: post #95
TuringNYC wrote: post #50

Earlier quoted context omitted.

>> wonder if they're just spending $.99 of every $1 If they spend $0.99 for $1 of MRR, that is amazing, because the first month's revenue covers the cost of acquisition and the rest of the stream is profit (minus other expenses of course.) Some of it depends on churn and how much MRR you lose and how quickly.

So it's a metric you can game if you go viral on Twitter and get a lot of signups that cancel after one month?

Not really, because MRR isnt the only metric.

We'd look at an objective function of LTV to CAC ratio.

We'd ignore everything below a certain absolute MRR.

We'd also ignore anything below a certain MRR growth rate.

The ones we'd typically look at as an investor are: MRR/ARR, Churn, CAC and TLV.

TLV would be total lifetime value which includes the monthly revenue * months given churn.

CAC would be the advertisement cost.

This basically means, how much $ are you spending to make what total $ per customer, and how what is the volume.

Re: undefined

#103

Post by whymauri »

throwaway54687 wrote: post #59
heywhatupboys wrote: post #54

Earlier quoted context omitted.

> Do you think Mercedes makes a cheap version of an SLK for the "poor Indians"? they, do? Global pricing of the same product is vastly different depending on regions. If there is an Italian and a Nepalese market for a handbag, that same bag could selld for twice as much in Italy. Just look at videogame prices!

They don't. Not cars, not electronics, not house appliances. As was said elsewhere - these are more expensive in poorer countries, not cheaper. Maybe handbags/other apparel, but I don't buy that. As someone coming from a poorer country, I'd check if it really is the same item - usually what happens is that they produce a cheaper version out of cheaper materials and with lesser service commitment that costs almost the…

You cannot generalize every commodity and every 'poor country' like that. There are cars in Colombia that are less expensive in Colombia, and some that are more expensive in Colombia, than the U.S.

Similarly, I was shocked to find that scotch whiskey is actually cheaper in Colombia than the US, and it's the same product. The market is more competitive because discount liquor (especially rum) is decently good quality and reaaally cheap. It's also hard to sell someone a bottle that is half their monthly salary!

Of course, this doesn't hold for anything (and I frankly have no idea how supply chains work), but my point is that it's not as simple as made out above.

Re: undefined

#104

Post by whymauri »

dumbaccount123 wrote: post #94
pbreit wrote: post #91

Earlier quoted context omitted.

Yes, some car companies do in fact create less expensive vehicles specifically for certain markets. https://en.wikipedia.org/wiki/Renault_Kwid

Not really applicable to premium brands so no need to be pedantic

The definition of premium shifts with the market. Subaru is premium auto in Colombia and they sell the XV instead of the Crosstrek, for example.

Re: undefined

#106

Post by PixelForg »

masterof0 wrote: post #31

I can only imagine your lifestyle in India with $18,036 / month , that's probably the equivalent of making 60k a month in the US? Wish you the best, I'm inspired.

I can't even imagine, my yearly income is $8350, and I still manage to save money (Indian here as well)

Re: undefined

#108

Post by pierrebai »

Congratulations!

Things I've noticed: no way to get back to nocodeapi landing page once logged in.

I am surprised that the list of big-names you give on your landing page rely on this because all users of nocodeapi have to trust you with their security tokens and API tokens. We have to trust the are properly encrypted, that no one could decrypt and use them... I would have thought most companies legal coding guidelines would prevent them from trusting a 3rd party with such tokens.

Re: undefined

#110

Post by brianwawok »

moralestapia wrote: post #90
optymizer wrote: post #62

Congrats! On a related note, can someone on HN can educate me on why MRR is the primary metric? MRR doesn't tell you if the startup is profitable, which is presumably the goal - to make money. If your costs are $3M/month, an MRR of $100K sounds like a terrible deal. Wouldn't it make more sense to report profits?

One-person software shops usually have recurring costs close to zero, so MRR pretty much equals profit (minus taxes and whatever). But yes, your argument stands for other kinds of startups.

I'd assume a few thousand for servers + softwares, but yah.. it's close enough to $0 you can usually tell if it's profitable.

Unlike something like e-commerce where 100k in monthly sales could be... 0 profit, or 70k in profit.

Post reply on HN