Glossary
Online business is full of acronyms and jargon. Here's a plain-English guide to the terms we use across our guides and articles.
LTV (Lifetime Value)
The total revenue a business can reasonably expect from a single customer account throughout the business relationship.
MRR (Monthly Recurring Revenue)
Predictable total revenue generated by your business from all active subscriptions in a particular month.
Nexus (Sales Tax)
A connection between a business and a state that requires the business to register and collect sales tax. In Iowa and Illinois, this can be physical (an office or employee) or economic (crossing a sales threshold like $100,000).
Opt-in
When a user actively subscribes to an email list or newsletter, usually by submitting a form.
POD (Print on Demand)
An e-commerce model where products (like t-shirts or mugs) are only printed after a sale is made, usually fulfilled by a third-party partner.
ROAS (Return on Ad Spend)
A marketing metric that measures the efficacy of a digital advertising campaign. Calculated by dividing revenue attributed to ads by the cost of those ads.
SaaS (Software as a Service)
A software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted.
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