3 ms·
At $15/month with 10% churn (which would be an unbelievably good churn rate for a paid B2C product) would make your LTV $150. An optimistic conversion rate from
by simantel 1y ago
At $15/month with 10% churn (which would be an unbelievably good churn rate for a paid B2C product) would make your LTV $150. An optimistic conversion rate from visitor to paid would be like 2% (imagine you convert 20% of visitors to a trial, and 10% of those to paid). In this incredibly optimistic world, you break even paying $3 to acquire a visitor.
Congrats you have a money printing machine!
More realistically though, you'll have like 33% monthly churn, $45 LTV, and 0.5% visitor-to-paid conversion. In that case you break even at $0.22 per visitor, which is a lot harder to make work.
The game is building a valuable product with good onboarding and retention, then finding ad creative that works. It's not easy!
- simantel 1y agoContrast that with B2B where churn rates are generally <10% (or better yet, net-negative revenue churn) and LTV is often $10k+, and you can see why it's a lot more appealing.
- bravesoul2 1y agoIf you can get $15 a month it is worth finding the whales who can afford $150 or $1500 for more usage or features. Its worth picking up a phone to get them!
- simantel 1y agoAt that point it's not really B2C, but dual-funnel?