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The 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% impro
by rgbrgb 10y ago
The 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.