[sudonim]

The numbers for acquisition look way off.

$.17 per click X 33% conversion...

I just ran an experiment with google ads for dating keywords. There were a few gaffs with hugely expensive keywords but overall, $2.45 CPC. We spent $200 and ended up with 1 conversion. Totally amateur, I know.

From other research I've seen, I think conversions tend to be way lower than the double digits. Like people first click on your ad and then check out and pay you money. From the per click of your ad they are often in the single digits or fractions of a percent.

It's a great looking pitch deck. Im concerned that they skewed their focus a little too much on looks over sound information.

Edit: Seems the company is live and moving product to real customers? If those are the numbers they're actually acquiring customers at, I take it back however improbable from my limited experience.

[patio11]

They're trying to get a conversion to something free, which has an order of magnitude or two easier than getting a conversion to something paid. The typical offer in the deals industry is "Sign up for our free emails for deep discounts." You can get 33% conversion to that if you're pitching something to a fresh audience which doesn't have deal fatigue. (Quick comparable: BCC landing pages convert at 40%+ for some sources of traffic. I know a guy who pities my terrible stats.)

The business model is then "Most people don't buy anything and have LTV of $0, some people buy one thing, and a fraction of people make a habit of buying from you. You optimize such that the people who buy stuff subsidize cost of customer acquisition for everyone else and then some, then scale like crazy while keeping an eye on those metrics.")

See also AppSumo / Groupon / etc. This is why they're all very aggressive about getting email signups: this space runs on email.

[ahall]

Thanks for the comment - but we actually aren't using adwords at the moment. We did but targeting brides through FB has out-performed adwords CPC. We've been experimenting with tons of ads and think we can even drive it lower. Here's a quick screenshot from FB - http://cl.ly/2W2A113q2u353I0q2P0P

[mrkurt]

An "acquisition" appears to be an email address (or similar level of effort). Note that their life time customer value is "5x-7x the acquisition cost".

It's a really good example of picking the right set of numbers to highlight, which seems to be a big problem people run into when creating pitches.

[mikek]

Grandparents.com has a 30% conversion rate on their newsletter signup:

http://www.theboomerblog.com/2009/02/how_to_market_to_grandp...

So this sounds believable actually.

[mrtron]

Facebook CPC would be 50 cents to a dollar. A 33% conversion rate is unheard of.

[minalecs]

anyway you could send me that data ?