1. Measurable stuff.
Customer Acquisition
Customer Development
&
Influencers SEM Apps Blog
Paid Media Social Networks SEO
Activation
Retention Referral
Brand
Events Viral loops Landing Pages
Blog Email
Email Social
Product Features
Your Brand Conversion
Revenue
Source: Dave McClure

2. Acquisition: Search Engine Marketing
Customer Acquisition Cost ($) =
Cost to get a user to your landing page.
eg: $1.00 per click from SEM for keyword “X” on Google Adwords
Customer Activation Rate =
% of users that register for your site.
eg: 10% of users that register for your site.
Customer Conversion Rate =
% of registered users that pay for your product.
eg: 5% of users that pay for your product
Actual User Acquisition Cost ($) =
Cost of User / % Activation / % Conversion.
eg: $1.00 / ( 0.10) / ( 0.05) = $200 per customer

3. Acquisition: Social Integration
Customer Acquisition Cost ($) =
Cost to get a user to your landing page.
eg: $1.00 per click from a Facebook ad.
Customer Referral Rate =
# of users that get to your site through a friend.
eg: 4 users on average are referred through a friend.
Customer Activation Rate =
% of users that register.
eg: 10% of users that register for your site.
Customer Conversion Rate =
% of registered users that pay.
eg: 5% of users pay for your product.
Actual User Acquisition Cost ($) =
Cost of User / User Referral / % Activation / % Conversion.
eg: $1.00 / 4 / (0.10) / (0.05) = $50 per customer

4. Your Brand’s Growth Rate =
Users Acquired x Avg. # of referrals per user x Activation rate
-------------------------------Not Viral------------------------------
Standard Growth:
1,000 users x 0 referrals x 5%=
50 new users enter the conversion funnel in generation 2 = Not Viral.
Social Growth:
1,000 users x 2 referrals x 15 % =
300 new users enter the conversion funnel in generation 2 = Not Viral.

5. Referral: A Viral Loop
Users Acquired x Avg. # of referrals per user x Activation rate
1,000 users x 5 referrals x 20% =
1000 new users enter the viral loop in generation 2.
Viral!
Every user refers a new user!