Oddbean new post about | logout
 nostr:npub1rm9euv33h2kkp3tjg0zecj34dr35uf09m45q93z5l5vdzmf3t4xqnjj2pe nostr:npub16pgdaynnelj0405h0y8aflpgc34hxaln4pe8hg6vnatsgp8dd8ss94jv07 It doesn't really work that way.

If you spend $2mn to advertise a service and you get 50,000 subscribers, then you've spent $40 to get each customer.

Excluding marketing, if you normally make $50 profit per year from a customer, then you make $10 profit in the first year after acquisition costs - but $50 profit in the second year.

So you can drop your charges $20 for the customer in year 2, and *still* earn more profit than a new customer.