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So it's a metric you can game if you go viral on Twitter and get a lot of signups that cancel after one month?
by tppiotrowski 4y ago
So it's a metric you can game if you go viral on Twitter and get a lot of signups that cancel after one month?
- TuringNYC 4y agoNot really, because MRR isnt the only metric. We'd look at an objective function of LTV to CAC ratio. We'd ignore everything below a certain absolute MRR. We'd also ignore anything below a certain MRR growth rate. The ones we'd typically look at as an investor are: MRR/ARR, Churn, CAC and TLV. TLV would be total lifetime value which includes the monthly revenue * months given churn. CAC would be the advertisement cost. This basically means, how much $ are you spending to make what total $ per customer, and how what is the volume.