7 ms·
thats the price of acquiring a customer. for my saas the cost to acquire a customer is X, X is multiple of montly fees. so only after couple of months im going
by disiplus 10y ago
thats the price of acquiring a customer.
for my saas the cost to acquire a customer is X, X is multiple of montly fees. so only after couple of months im going to be on 0. The cost for me could be adwords, running a free plan, or something else.
how is this different. I assume that they hope to convert some of those to regular customers.
- aedron 10y ago"We'll sell at a loss but we'll make it up in volume."
- vacri 10y agoSelling at 1% under market price is only a loss if you're acquiring from the same market.
- mcherm 10y agoThe difference between an acquisition cost per customer but making money on each transaction and losing money on each transaction is that the first can be a viable business if you can retain customers long enough while the second will always lose money. Offering below-cost deals to all customers for a time (to acquire them) then raising prices to a profitable level is different from either. Unlike the second, it might make money in the long run. Unlike the first, the ability to make a profit hasn't been demonstrated yet.