CPA and Small Business Marketing
Love Your CPA & Netflix
I am in the middle of an awesome book.
“Netfilxed, The Epic Battle for America’s Eyeballs.”
The author is Gina Keating.
So much to learn and also very entertaining to go back to the beginning of what is now a large, large business.
Holy cow… 3000 shares of Netflix stock when it was trading at $5 per share would have been a nice phone call to your stock guy many years ago.
A few ideas for you…
Useless Knowledge: The story of Netfix founder, Reed Hastings, being P-O’d about Blockbuster late fees as an inspiration to start Netflix is not totally accurate. I guess a little poetic license and embellishment goes a long way.
Next on the playlist…
So how about this CPA thing?
Am I telling you to love your accountant?
CPA… stands for “Cost Per Acquisition.”
This is the cost/investment a business pays to acquire a customer or client.
It is a very important number to know and understand.
Of course… there are many other important marketing numbers to know.
During the head to head battle… a few years before Blockbuster was defeated… the CPA numbers broke down like this…
Netfix was paying around $30 to get a subscriber.
Blockbuster was paying around $50.
And… Blockbuster had a much higher dropout rate than Netflix.
Important numbers to know.
What we love about online marketing and helping our clients is all this can be tracked.
You start with the basics… Looking at traffic and where the traffic is coming from.
Then… you move on from there.