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Doing the unscalable things only works if the LTV per user is very high. You can't just apply that every single startup.
by weixiyen 13y ago
Doing the unscalable things only works if the LTV per user is very high. You can't just apply that every single startup.
- Game_Ender 13y agoI always thought the idea was that the LTV is in getting a lot of users and you do that by making as good an impression as possible on your first users. Even if you are spend several times what your initial users bring in supporting them, if that creates enough traction to get a lot of users down the line you come out ahead.
- sgold515 13y agoI think the main point about doing things that don't scale is so you can really understand what's going on in your market. No point in scaling a system that doesn't work.
- jmngomes 13y agoIt doesn't apply with to every startup, but it does to most. Getting early adopters is usually a very "manual" process, even more so in B2B startups. My business' sales will be entirely online once (if) it gets into cruise speed. Then, the CAC will lower and the LTV will rise. But until then, I have to spend a lot of) time cold calling, getting intros and doing the first B2B sales myself. If I don't do this, I won't have any customers from where to compute a CAC or a LTV.