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You're right! It can get a little tricky... Still, if you're unit economics don't work, you're going to have a hard time building a company.Disruptive business
by guyshachar 10y ago
You're right! It can get a little tricky...
Still, if you're unit economics don't work, you're going to have a hard time building a company.Disruptive business models sometimes work (and history is always written in hindsight)... But basic economic principles always hold true
- rgbrgb 10y agoThe point is that unit economics are not some static thing, LTV is a product of conversion rates at each step of your funnel. Every step you improve by x% improves LTV by x% for new users (for this type of company at least).
- sharemywin 10y agoAlso, think of most small service businesses they hustle their ass off in the beginning with horrible CACs but then they start getting referrals and LTV/0 starts looking pretty good.