Adlega Blog:

What is Feature Adoption Rate? Feature Adoption Rate measures the percentage of users who actively use a specific feature after its release. This metric is crucial for understanding whether users find value in new features and helps guide product development decisions. How to Calculate Feature Adoption The basic formula for fature aadoption rate is straightforward:…

What is ARPU? Average Revenue Per User (ARPU) measures how much revenue a business generates from each user, including both paying and non-paying users. It’s a key metric for understanding business health and growth potential. Basic Formula and Example ARPU = Total Revenue ÷ Total Number of Users Simple Example: Monthly revenue: $10,000 Total users:…

What is ARPPU? ARPPU measures how much revenue you generate from each paying user. Unlike ARPU (Average Revenue Per User), ARPPU only considers users who actually pay, giving a clearer picture of customer value. How to Calculate ARPPU Basic Formula ARPPU = Total Revenue ÷ Number of Paying Users Example Calculation A SaaS company has:…

What is Concentration Risk? Concentration risk occurs when a business depends too heavily on a single factor: One major customer One key supplier One revenue stream One geographic location One product line Imagine putting all your eggs in one basket – that’s concentration risk in its simplest form. Let’s explore how this risk affects businesses…

What is CMGR? Compounded Monthly Growth Rate (CMGR) measures your consistent monthly growth rate, assuming growth compounds each month. It’s particularly useful for startups and SaaS companies to understand their true growth pace. Why CMGR Matters Shows consistent growth pace Better than simple averages (see explanations further in the article) Accounts for compounding effect Helps…

What are Variable Costs? Simple Definition: Variable costs are expenses that change directly with your production or sales volume. The more you produce or sell, the higher these costs; the less you produce or sell, the lower they become. Key Characteristics Change proportionally with activity Zero if no production/sales Easy to assign to specific products…

What are Fixed Costs? Simple Definition: Fixed costs are expenses that remain constant regardless of how much you produce or sell. Think of them as the bills you have to pay even if you don’t make a single sale. Key Characteristics Don’t change with production volume Usually time-based (monthly, yearly) Must be paid regardless of…

What is Break-Even? Simple Definition: The break-even point is when your total revenue equals your total costs – the point where you’re neither making a profit nor a loss. It’s like finding the exact moment when your business starts paying for itself. Why It Matters Helps in business planning Guides pricing decisions Shows minimum sales…

What is Outbound Marketing? Simple Definition: Outbound marketing is when a company initiates contact with potential customers through advertising and promotional messages. It’s like reaching out to shake someone’s hand instead of waiting for them to approach you. Common Types of Outbound Marketing Traditional Media TV commercials Radio ads Print advertising Billboard advertising Direct Communication…

What is Inbound Marketing? Simple Definition: Inbound marketing is a strategy that attracts customers by creating valuable content and experiences tailored to them. Instead of interrupting people with your message, you help them find you when they need you. Inbound vs. Outbound Marketing Outbound Marketing (Traditional) TV commercials Cold calling Print ads Billboard advertising Unsolicited…

What Are TAM, SAM, and SOM? Think of these metrics as three concentric circles, each getting smaller and more focused: TAM (Total Addressable Market) The entire possible market for your product Everyone who could theoretically use your product Your “dream big” number SAM (Serviceable Addressable Market) The portion of TAM you can actually reach People…

Revenue, Income, and Profit: Understanding the Differences Confused about financial terms? Let’s break down the differences between revenue, income, and profit using simple examples and clear explanations. Quick Overview Think of a lemonade stand to understand these terms: Revenue: All the money you collect from selling lemonade Income: Money you receive from various sources (lemonade…