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That's what's interesting about this "arms race" to acquire customers: when startups aren't worried about profits, CAC can be arbitrary ("because we'll make it
by mijustin 13y ago
That's what's interesting about this "arms race" to acquire customers: when startups aren't worried about profits, CAC can be arbitrary ("because we'll make it back later!").
The bi-product of all this is exactly as you describe: startups are artificially driving up the cost of AdWords (and maybe other channels, like salespeople).
- cm2012 13y agoBig brands do the same thing. Terms like "Diamond Ring" can't be profitable online since the big brands are willing to lose money to make sure they keep brand equity.