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This isn't my opinion, it's more like "business physics". Any company without network effects is going to have escalating acquisition costs as they have to conv
by eldavido 8y ago
This isn't my opinion, it's more like "business physics". Any company without network effects is going to have escalating acquisition costs as they have to convince more highly indifferent users/customers to come onboard.
This is why Weebly is a 360 million dollar company and Uber is a 30 billion dollar company (100x difference). Uber is building a monopoly that almost completely precludes competition. There simply isn't anything close to this in Weebly's business model.
Blue Apron is a good example of what happens when CAC gets out of line. Check it out.
- zapita 8y ago> This isn't my opinion, it's more like "business physics". Of course it's your opinion. You don't actually know their acquisition costs, or the strength of their network effects. You're out here making educated guesses, like the rest of us. Just because you're really confident about your guess doesn't make it automatically correct.