Re:Why investors don’t fund dating
by tlb on Tuesday May 26, 2015 @03:37PM
(#9607119)
He botches the math. 20% monthly churn means you have to replace your customer base 2.4 times over a year, not 8 times. But the conclusion is the same: CAC > LTV.
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I assume his formula (1+monthly_churn)^12 – 1 was based on a misremembering or misunderstanding of annual churn = 1 - (1-monthly_churn)^12.
Re:Why investors don’t fund dating
by andrew_null on Tuesday May 26, 2015 @04:33PM
(#9607457)
OP here. You're right, I'll update for math.