Business Model Churn Rate Demand Dilution 
Lightspeed Venture Partners
NOVEMBER 19, 2012
With a 15% churn rate, that suggests about $7 in lifetime value. This business can’t work. Daymond had invested in a competitive business previously, so he bowed out. That would put the cost of the ties at around 2x $85/24 = $7/mth. The cost of shipping and handling is at least 4 x $2= $8/mth.
maplebutter.com
JANUARY 8, 2013
I’m not afraid to pick up the phone, cold call someone, use LinkedIn to find someone who’s recently left a company that might be considered competitive and ask them for advise around the business model and marketplace. Then decide if you can build more value on either end of that process to demand a higher premium. 1) Hire A’s.
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