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Ah, thanks for the example. I'm used to thinking of costs as development (fixed costs, spread over an extended period before revenue is generated) and maintena
by cperciva 10y ago
Ah, thanks for the example. I'm used to thinking of costs as development (fixed costs, spread over an extended period before revenue is generated) and maintenance (proportional costs over the same timespan as revenue), but I never thought of customer acquisition as something occupying the "proportional cost, paid up-front" segment.
Not really relevant to tarsnap (I've never found an efficient way to spend money to acquire customers in the short term; instead I focus on longer-term branding) but I can absolutely see that it fits some companies.
- pritambarhate 10y agoJust checked out Tarsnap. Seems like a very good idea. >Not really relevant to tarsnap (I've never found an efficient way to spend money to acquire customers in the short term; instead I focus on longer-term branding) but I can absolutely see that it fits some companies. Isn't backup a kind of sticky service? I mean once I have purchased your service, as long as I am not facing any issues I am unlikely to change the provider. So LTV calculations should be relatively more predictable to your business. For example, I use Dropbox for personal online storage and backup purpose. It has worked well so far and haven't considered switching in years. Anyways, not trying to tell you how to run your business. Just curious. Yours is really an intersting product. Best of luck.
- cperciva 10y agoYes, I have plenty of LTV per customer; but tarsnap's users skew heavily to the more technical and aren't exactly easy to targets for advertising.