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We can spare this discussion. Of course there might be use cases which have a healthy CAC to LTV ratio. But almost none of them is B2C, except scammy dating ap
by thinbeige 9y ago
We can spare this discussion.
Of course there might be use cases which have a healthy CAC to LTV ratio. But almost none of them is B2C, except scammy dating apps and addictive fremium games. And some one-hit-wonder games which cannot replicate their success.
On the B2B side it's a bit better because of higher LTVs but all B2B apps have a web version where leads are generated anyways. So, mobile is just complementing but not in the user acquiring role.
But maybe you tell us if you are so lucky and have a, from a business-POV working, app which provides enough value and charges enough for it AND can acquire users for less than their LTV. Give us your example, we are curious to hear how you make money in the app stores (which is just hard to believe).
- nine_k 9y agoCAC > LTV = "not providing enough value", to my mind. That is, people are not willing to pay for it enough. This, to my mind, also means that small paid apps indeed is not a reliable market. Either you need to go viral (a rare stroke of luck), or you have to complement an existing business of some sort (and it has a web site which is a powerful lead generator, this goes without saying). So no, I don't have a good example, for these very reasons. When I will have executed on a a million-dollar idea (which is, of course, peanuts for a startup but could be a great side project), and it would happen to be in the mobile-only space, and won't be a freemium game, I promise to write a post.