Stop guessing. Use math instead
If you don’t know these three numbers, you don’t know if your business is profitable.
The Three Numbers
CAC (Customer Acquisition Cost)
Total marketing spend / Number of customers acquired
LTV (Lifetime Value)
Average customer revenue / Customer lifetime
Payback Period
How many months until revenue covers CAC
The Golden Rule
Your LTV should be at least 3x your CAC. If it isn’t, your unit economics don’t work.