Startup Killer: the Cost of Customer Acquisition | For Entrepreneurs
www.forentrepreneurs.com
FEBRUARY 2, 2010
A quick look around all the B2C startups shows that, although viral growth is often hoped for, in reality it is extremely rare. It appears that LTV should be about 3 x CAC for a viable SaaS or other form of recurring revenue model. As a very rough rule of thumb here are two guidelines that you might find helpful: LTV > CAC. (It
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