3 ms·

According to leaked decks: https://www.businessinsider.com/lambda-school-promised-lucrative-tech-coding-career-low-job-placement-2021-10 https://www.businessins

According to leaked decks: https://www.businessinsider.com/lambda-school-promised-lucrative-tech-coding-career-low-job-placement-2021-10 https://www.businessinsider.com/lambda-school-promised-lucra... Total cost per student was $13,000, of which $2,500 went to student acquisition (online ads?). Average revenue per students was $5,750. Since 2021, they've lost a ton of their executive team, including a cofounder. I find that a pretty clear sign of where things are going.

edmundsauto 4y ago
One of the most interesting things, to me, is that Customer Acquisition Cost is ... not bad at all! Most places that sell online are spending much more than that per customer. Different issues at play here with uncertainty around getting a job and a timeline, but for a company trying to grow, spending < 25% of your revenue on acquisition is exciting.
- yunohn 4y ago
  > Most places that sell online are spending much more than that per customer In percentages yes, as you note. But in raw numbers, that’s insane! Ad placements (simplified) can be geared towards CPA or ROAS - the former would be towards getting conversions, the latter towards ensuring a return on said conversions. Neither directly implies that you should be spending a massive % of your revenue for it.
- sandofsky 4y ago
  At the time, the hook was “You pay nothing unless you get a job,” and then lying about how many people get jobs. Since then, the central thesis of the company has been shown to not work, so it pivoted into loans at 12.5% interest. They are trying very hard to market the loan approach like they’re ISAs. I’d bet that if these lawsuits (or regulators) forced them to cut the dishonest marketing, their acquisition costs will increase.
chzblck 4y ago
That CAC is surprisingly low.

3 ms·

According to leaked decks: https://www.businessinsider.com/lambda-school-promised-lucrative-tech-coding-career-low-job-placement-2021-10 https://www.businessins

by sandofsky 4y ago

edmundsauto 4y ago
One of the most interesting things, to me, is that Customer Acquisition Cost is ... not bad at all! Most places that sell online are spending much more than that per customer. Different issues at play here with uncertainty around getting a job and a timeline, but for a company trying to grow, spending < 25% of your revenue on acquisition is exciting.
- yunohn 4y ago
  > Most places that sell online are spending much more than that per customer In percentages yes, as you note. But in raw numbers, that’s insane! Ad placements (simplified) can be geared towards CPA or ROAS - the former would be towards getting conversions, the latter towards ensuring a return on said conversions. Neither directly implies that you should be spending a massive % of your revenue for it.
- sandofsky 4y ago
  At the time, the hook was “You pay nothing unless you get a job,” and then lying about how many people get jobs. Since then, the central thesis of the company has been shown to not work, so it pivoted into loans at 12.5% interest. They are trying very hard to market the loan approach like they’re ISAs. I’d bet that if these lawsuits (or regulators) forced them to cut the dishonest marketing, their acquisition costs will increase.
chzblck 4y ago
That CAC is surprisingly low.