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For a lot of these companies, they are profitable on a per customer basis, they're paying to acquire more customers. For example, if it costs you $10 in market
by mindvirus 7y ago
For a lot of these companies, they are profitable on a per customer basis, they're paying to acquire more customers.
For example, if it costs you $10 in marketing, promotions, etc. to acquire a customer, but on average those customers will pay you $20 over their lifetime, what should you do? Raise money and spend as much as you can to acquire more customers, if you think it scales!