The Startup Ideas Podcast
The best businesses are built at the intersection of emerging technology, community, and real human needs.
“if you had an ATM where you put a dollar in and $4 came out what would you do”
What It Means
When customer lifetime value exceeds acquisition cost, you should maximize ad spend like using a profitable ATM
Why It Matters
Reframes paid advertising as arbitrage opportunity rather than expense
When It's True
When you have reliable tracking, positive unit economics, and sufficient budget for optimization
When It's Risky
When attribution is unclear, churn is high, or you lack capital for testing
How to Apply
Calculate true customer lifetime value including retention
Set up proper conversion tracking to measure real costs
Scale spend on profitable channels until arbitrage disappears
Example Scenario
“Spend $80 to acquire customer who generates $550 lifetime value - keep increasing ad budget until cost approaches $400-500 range”
Related Knowledge
I'm trying to create like a rigged slot machine where I put a dollar in and get $1.30 out
Focus on predictable profitability rather than uncertain growth - find formula that works and scale it
LTV over CAC of above three best consumer mobile apps
Sustainable consumer mobile apps achieve lifetime value to customer acquisition cost ratios exceeding 3:1