| Accrual Accounting | Records revenue when earned and expenses when incurred, regardless of cash movement - gives a truer picture than cash accounting |
| ARPU | Average Revenue Per User: Revenue ÷ total customers Useful in SaaS |
| B2B | Business to Business: Selling to other companies Often longer sales cycles, higher ticket |
| B2B2C | Business sells to another business that serves end consumers (eg, Shopify → merchants → buyers) |
| B2C | Business to Consumer: Selling directly to end users Usually higher volume, lower ticket |
| BAMFAM | Book A Meeting From A Meeting: Sales discipline to never leave a conversation without scheduling the next step [100M Closing Playbook §Closes] |
| Bottom Line | Net profit after all expenses; the final measure of profitability. |
| CAC | Customer Acquisition Cost: Total cost to acquire a new paying customer (ads + sales + marketing overhead ÷ new customers) [100M Leads p208] |
| Churn | % of customers who cancel in a given time period Inverse of retention [100M Retention Playbook §Churn Math] |
| Churn Rate | Percentage of customers lost over a specific period. |
| Close Rate | Percentage of leads or prospects that convert to paying customers. |
| COGS | Cost of Goods Sold: The direct cost of purchasing the goods a company sells, and it is a key expense that directly impacts profit. It includes expenses like raw materials, direct labor, and manufacturing overhead, but not indirect costs like marketing or salaries. |
| Cost to Value | The perceived value must significantly exceed the price paid; customers buy when the benefit outweighs the cost |
| CRO | Conversion Rate Optimisation: Improving the percentage of visitors who take a desired action (e.g., purchase, sign up). |
| EBITDA | Earnings Before Interest, Taxes, Depreciation, and Amortization: A cleaner view of profitability before financial structuring |
| FCF | Free Cash Flow: Cash left after operating expenses + capital expenditures Critical because cash pays bills, not “profits” [100M Money Models p233] |
| Funnel | The stages a prospect moves through before becoming a customer (e.g., awareness, interest, decision, action). |
| Grand Slam Offer | Offer so good people feel stupid saying no [100M Offers p22] |
| Gross Margin | (Revenue – Cost of Goods Sold) ÷ Revenue High gross margin = scalable business |
| Gross Margin / Gross Profit | The revenue remaining after deducting the Cost of Goods Sold (COGS). |
| Gross vs Net | Gross = before costs (top-line) Net = after costs (bottom-line) |
| Industry CAC Benchmark | Varies heavily Rule of thumb: aim for CAC ≤ 1/3 of LTGP [100M Leads p208] |
| Lead Magnet | A valuable piece of content or service (e.g., a free PDF guide, training video, or consultation) offered to a prospect in exchange for their contact information. |
| LTGP | Lifetime Gross Profit: LTV × Gross Margin % More accurate than LTV since it accounts for cost of goods sold [100M Money Models p228] |
| LTGP:CAC Ratio | Healthy is ~3:1 (spend $1 to acquire, get $3+ in gross profit) If <1:1, you’re losing money; if 10:1, you’re under-investing [100M Leads p208] |
| LTV | Lifetime Value: The total revenue expected from a customer over their relationship with you [100M Money Models p226] |
| Marketplace | Connects buyers and sellers, takes a cut (Airbnb, Uber) |
| Net Margin | Net profit ÷ Revenue Bottom-line profitability after all costs |
| Offer | The combination of a product or service, its price, payment terms, incentives (bonuses), and guarantees presented to a prospect. |
| Online Ads Attribution | The process of identifying which marketing touchpoints (e.g., specific ads, campaigns, or channels) were responsible for a customer’s conversion or purchase. |
| Outbound Outreach | Proactively reaching out to potential customers via calls, emails, or ads. |
| Recurring/Subscription | Predictable monthly revenue Gold standard for valuations |
| Return on Ad Spend (ROAS) | The revenue generated for every dollar spent on advertising. Calculated as: (Revenue from Ads / Cost of Ads). |
| Risk Reversal | Guarantees that shift risk from buyer to seller [Playbook – Guarantees §Hard Guarantees] |
| Sales Velocity | A measure of how quickly a business can move qualified leads through its sales pipeline and turn them into customers, and how much value those customers represent. |
| Scarcity/Urgency | Limiting supply or time to push action [100M Offers p113] |
| Ticket Price | The price paid for a product or service; often refers to average sale amount. |
| Top Line | Total revenue before any costs or expenses are deducted. |
| Transactional/One-off | One-time purchases, low predictability |
| Value Equation | (Dream Outcome × Perceived Likelihood of Achievement) ÷ (Time Delay × Effort & Sacrifice) [100M Offers p47] |