Funding. Enterprise 2.0: Freemium first, enterprise second (Part 1 of 3) The market for Enterprise 2.0 apps has taken off in the time since I first alerted consumer software entrepreneurs to this huge new opportunity (“Enterprise 2.0: Calling Consumer Internet Entrepreneurs!”).
Multiple venture-backed Enterprise 2.0 companies already boast billion-dollar-plus valuations, and there have been a number of quick and profitable exits (EchoSign, Jigsaw and TripIt, for example). Enterprise 2.0 remains one of the best opportunities in the technology market today. The enterprise software incumbents are currently a full generation behind, just now entering the traditional SaaS market through acquisition (for example, Oracle’s $1.5 billion acquisition of RightNow and $1.9 billion acquisition of Taleo, and SAP’s $3.4 billion acquisition of SuccessFactors). Meanwhile, more forward-looking software companies like Salesforce.com are realizing that the route to the enterprise now goes through the user, not the IT department. But Salesforce.com is the exception. What is a low-ball average conversion rate.
+1 for Michael's comments.
I've had sites where the clickthrough rate to advertisers was far below 0.5%, and I've had sites where the clickthrough rate to advertisers was above 10%. Sometimes these were pages with a link to a single advertiser; most often each page contains links to multiple advertisers. Once someone has clicked to an advertiser's site, I see conversion rates from about 0.5% to about 5% (quite rarely 10%). (I've certainly had sites where the conversion rate was well below 0.1% or even zero, but I generally abandon those sites if I can't identify a way to generate meaningful revenue.) Ultimately, I don't focus on clickthrough rate (CTR) or conversion rate (CR), but instead I focus on eCPM -- the "effective cost-per-thousand" that my advertisers are ultimately paying for ADVIEWS (not clicks) on my site.
Machine Learning & Big Data. Flowcharting. Search & Filter. Stickiness. Benefits. Site Development Resources. Matching.