The Startup Ideas Podcast
The best businesses are built at the intersection of emerging technology, community, and real human needs.
“At the end of the day it's all a math equation, CAC versus LTV”
What It Means
All business decisions should be evaluated based on customer acquisition cost vs lifetime value math
Why It Matters
Removes emotion and guesswork from business decisions, forces focus on what actually drives profit
When It's True
When you have reliable data and stable market conditions
When It's Risky
In early stages without data, during major market shifts, or for brand-building activities
How to Apply
Calculate CAC and LTV for all marketing activities
Make decisions based on improving the ratio
Don't pursue activities that hurt the math even if they seem good
Example Scenario
“Choose to increase prices 20% even if conversion drops 10% because overall profit per customer increases”
Related Knowledge
I've seen like 40% conversion rates
AI search traffic converts at dramatically higher rates than traditional search traffic
The statistical probability that the only idea you have being the best use of your time and money is
Without comparing multiple options, people cannot make optimal resource allocation decisions