Why Making Something Customers Want Isn't Enough
Best forFounders choosing a price and channel before launch who have not done the LTV and acquisition-cost math.
An article on robwalling.com, a 6 min read.
Read on robwalling.comOur notes
Rob adds a requirement to the usual startup checklist: each customer has to be worth more than it costs to acquire them. He walks through a simple lifetime value calculation from price and churn, then estimates acquisition cost for AdWords, Facebook, SEO, cold calling and referrals to show why a low-priced product often cannot pay for its own marketing.
Filed on the pricing shelf
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