can you explain this from first principles and logical approach to make me understand -  Glossary: Learn Marketing Terms 
The goal of this page is to explain marketing jargon simply and quickly. twill help you understand things faster and easier than if you had to Google everything. Plus, Google results can be too jargon-heavy. 
Use command + F (Ctrl + F) to find the words faster. Seriously. Don't scroll through this page. Search through it. 
Let's roll. 
“Above the fold” and “below the fold” 
Traditionally “above the fold” comes from newspapers. It is the upper half of the front page of a newspaper or tabloid where an important news story or photograph is often located. 
In the context of websites, it’s the content shown on a visitor's screen when they first hit the website. The “fold” being the bottom of their view screen at that point. And thus, “below the fold” is all content that is below that point that is not visible when the visitor first hits the page. 
Where the “fold” lies depends on the visitor's device. A 34” monitor, a laptop, an iPad, or an iPhone SE all have very different screen sizes, so the fold would be completely different places. 
Generally, the content “above the fold” should tell the majority of visitors what your product is and why it’s useful. They shouldn't have to scroll to find that out. 
B2C 
Stands for business-to-consumer. Means you're selling to people, not businesses or 
governments. 
Products that are B2C 
* Toothbrushes + Grocery Stores © Netflix 
Products that are NOT B2C 
* Steel Mills + Accounting software © Forklifts 
B2B 
Stands for business-to-business. Means you're selling to business, not people or governments, These tend to sound "boring", but they can be anything but. 
Products that are B2B 
* Steel Mills + Accounting software © Forklifts 
B2G 
Stands for business-to-government. Means you're selling to governments, not people or businesses. 
These are even more boring than B2B businesses. And often great businesses to be in. 
There is often overlap with B2B. 
Products that are B2G 
* Voting software * Plumber agencies 
« Fertilizer (the government has to water its lawns, too!) 
Acceptable CAC (Cost of Acquiring a 
Customer) 
How much you can afford to pay... to get someone to pay you. 
Examples 
© You're an accountant. You pay anyone who refers you a new client $300. Your CAC is $300, © You sell furniture. You pay $100 for a classified ad in the newspaper. You sell two couches through it. Your CAC is $50. 
More complicated example: 
© You pay a salesperson $10,000 a month to send out emails for you. Plus a $1,000 bonus for each customer they bring in. You close 5 deals a month. Total cost: $10,000 + $1,000*5 = $15,000 Number of deals: 5 Cost divided by deals: $3,000 Your CAC is $3,000. 
The higher the CAC you can afford, the more appealing options you have for growth. 
So, how much can you afford? How do you figure out what your acceptable CAC is? A few approaches. 
Approach 1: Use a rule of thumb 
If you don't want to think much about it, take your LTV and divide it by 3. This tends to be the case for most companies. 
Approach 2: Back into CAC from your LTV 
1) Start with your LTV (also explained in this doc) 
2) Subtract out all the variable costs per purchase. 
What are variable costs? They're how much you have to pay to make the product. 
Examples: 
© You sell couches. It costs you $40 dollars to build a couch and $10 to wrap it in plastic. Your variable cost is $50. © You AirBnB out your house. Each time someone rents it, you have to pay a cleaner $100 to fix it up. Plus you have to pay $3 for laundry detergent, dish soap, and the electricity they used. Your variable cost is $103. 
3) Subtract out how the minimum profit you need to be left over. 
Now: gut check this number. Would you actually be comfortable paying that much, today, for a new customer? Think about what hidden costs pop up and account for those. Give yourself a bunch of room for error. 
Let’s use the couch example. Let's say you sell couches for $500. 
1. LTV = $500 2. $500 - $50 per couch = $450 per couch. 3. Ineed to make $100 per couch or my family can’t make rent. 4. Acceptable CAC: $450-100 = $350. 5, Gut check: | also pay employees and rent office space. That adds up to $50 per couch. 6. Acceptable CAC is actually $300. 
Approach 3: Use budget and user targets 
This approach is meant for companies that haven't figured out how to charge yet, but need more users. 
1. Figure out how much budget you have to spend. 2. Sometimes this number is zero. That's OK. 3, Figure out how many users you need, minimum. 4. Divide #1 by #2 
One last note on CAC. The more viral your product is — meaning, the more people tell other people about it — the cheaper your CAC gets. Let's use an example. 
Lets take Dropbox as an example. Ordinarily, lets say Dropbox has a CAC of $500 through ads; they have to spend $500 to get a new customer. But, on average, anew Dropbox user refers 9 friends (at almost no extra cost to Dropbox). 
Dropbox’s actual CAC would be $50, because they get 10 customers for $500. 
CPA (Cost Per Acquisition) 
How much it costs to acquire ("get") a user — meaning they're using your product. 
This depends on what type of product you have. 
Ifyou're accounting software, your CPA (Cost Per Acquisition) is probably your Cost Per Signup. If you're a mobile app, it’s probably your Cost Per Install. If you're an eCommerce company, it might be your Cost Per Purchase. 
You can even have multiple different CPAs you're tracking for the same product. An 
"acquisition" is whatever you want to define it to be (a signup, an install, etc.). 
The important thing is to be on the same page with your team about what "CPA" means for you. 
CPA is different from CPC, which is always the cost per ad click. It's also different from CAC, which is always the cost per purchase. 
CPC (Cost Per Click) 
How much you have to pay for each person who clicks on your ad. 
For example, if 10 people click on your Facebook ads and you've spent $50 on Facebook ads, your CPC is $5. 
CRO (Conversion Rate Optimization) 
The use of analytics and user feedback to improve the performance of your website for conversions. 
CRO is typically associated with acquiring new customers, registrations, and downloads, 
but it can be used to improve any metric important to your business. 
Examples 
© You look at your data and realize your mobile site looks horrible - keeping many people from signing up. You make your landing page mobile-friendly. 
* You puta live chat widget on your site. © You send Task Rabbits into offices to demo a high-end bike in person - so people can see it and feel it before they buy. 
CRO is far reaching and includes everything from A/B testing, user surveys, checkout flow changes, to minor tweaks in copy and creatives. 
LTV (Lifetime Value) 
How much you expect your customers to pay you, total. Over their whole time with your 
company. 
Examples 
* Ifsomeone pays you $100 per month but will usually stay with you for 2 years, your 
LTV is $2400 (24 months * $100 per month). * If they buy once and paying $200, your LTV is $200. * If they pay $500 up front, then $100 every year, and customers stay with you for 6 
years on average, your LTV is $1100. 
Early companies won't always have a good idea of what their LTV is, because they don't know how long customers stay with them 
In general, keep this number conservative (low). 
Alternative: LTV based on churn 
Another way to calculate LTV is by looking at the percentage of people who /eave you every month. For example, ifyou cost $50 a month, and 1/6 of your customers cancel their subscription every month, your LTV would be 6*$50...or $300. Because your 
average customer stays 6 months. 
That 1/6 is also called your churn rate. So, more generally, LTV would be monthly revenue ($50) divided by churn (1/6, or 16%). 
Alternative: LTV based on margins 
It’s sometimes useful to say your LTV is the lifetime profit you make from a customer, not just how much they pay you. 
For example, if you're a hamburger joint and customers pay you $10 per hamburger, but you pay $3 per hamburger, you might want to treat $7 as your LTV — since you know you have to pay for a hamburger, no matter what. 
This is usually the case for eCommerce companies shipping physical goods they have to pay for themselves. 
Software businesses (such as SaaS businesses), generally don't have to pay for anything when they get a new customer. So they can base their LTV on revenue and not margins. 
Prospecting Ads 
Ads that expose you to a business for the first time. 
For example, if you've never seen Fictitious Dog Food and then see a Pinterest ad for it, well, then you have heard of Fictitious Dog Food now. 
Retargeting Ads 
Ads you see after you're already aware of someone's business. 
For example, after you went to Bell Curve's website (former name of Demand Curve), we showed you a retargeting ad on Facebook and Instagram. It looked like this: 
B Bell Curve oe 
Sponsored -@ 
This is a retargeting ad. 
Slightly annoying? Probably. Effective? Yes. Most of our clients earn a 
quarter of their revenue from retargeting ads like this one. 
You'll learn to run more effective retargeting ads — segmentation, time 
delays, and more — with Bell Curve's growth training. 
We're growth marketers. 
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For companies of every size. 
= omment ent > Share > Share 
SaaS 
Stands for “Software as a Service”. When you pay monthly (or quarterly, yearly, etc.) to use a website or app. Forever. 
In the past, companies used to sell you software (like Photoshop or Microsoft Word) once. Then you could use it forever. 
Now, companies charge you monthly to use the same software. That's SaaS. 
Examples 
© Netflix is Saas. 
© Office 365 is SaaS. 
+ Adobe Creative Cloud is Saas. 
Not SaaS 
© Uber (no monthly fee; you pay per ride) © The latest version of the Madden NFL video game series. (You pay per game) © Food trucks (pay per meal) 
Service-based businesses 
Businesses where the major cost is salaries and actual people working, Not physical materials. 
Examples 
Alaw firm. Major expenses are lawyers, paralegals, and unwitting law school 
interns. A plumbing company. Major expenses are plumber salaries, not the tools. Ahigh school. Major expenses are teacher salaries. A barbershop. Major expenses are barber salaries. 
Not service-based businesses 
© A towel company. Major expenses are unfinished cotton and dyes. + Facebook. It doesn't need a ton of employees to serve ads to over a billion people. Major expenses, if any, are computer servers. © Allbirds. Major expenses are shoe materials. 
eCommerce 
Selling physical things online. Technically, eCommerce is selling anything online, but that definition isn't useful for marketers. So for our purposes... 
Examples of eCommerce 
« Selling your used guitar on eBay 
* Casper mattresses * Buying a book on Amazon 
Not eCommerce 
© Netflix (not a physical thing) ° Aspa day © Apremium Linkedin subscription © Alawyer 
Landing Page 
The first page users see when they hit your site, usually after clicking an ad. People “land” on it like a plane touching down on pavement. Instead of coming from a plane, they come from your ad 
Alanding page is very close to a homepage, which is what lives at the basic address for your site (airbnb.com). Landing pages can be “after the slash" (airbnb.com/san- francisco). 
 AirBnB's Francisco San landing page. 
 
The difference between a landing page and a homepage is that you can make different landing pages for different ads. For example, if you're running an ad in Milwaukee, Wisconsin, you might use photos from Milwaukee on your ad landing page. But your homepage would have images from around the world. 
This is an example landing page. 
 
ARPU (Average Revenue Per User) 
Similar to LTV, but ARPU is based on a specific timeframe. Companies primarily talk about their ARPU on a monthly or annual basis. 
To calculate your ARPU for any given month, take your total revenue for the month and 
divide it by your total number of active customers during that same month. 
For software products with free and paying users, be sure to use only your paying customers when calculating ARPU.