Recently Vonage founder Jeffrey Citron said something to the affect that "on average, between $150 and $200 per customer. It's a highly volatile number" when asked about acquisition costs.
Based on my calculations previously and that of others, we all fee that is way low.
But how does Vonage track those costs? Is it total sales - is it net sales - how do they factor in churn.? What expenses to they include in the acquisition expense line - ongoing residuals - equipment subsidies - marketing headcount - agency fees - fulfillment - etc.? Or do they simply include their pure marketing expense? The answers to these questions will drive a very different view of their actual financial performance
