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Lifetime Value or Virality

This article is worth reading in its entirety –

The only 2 ways to build a $100 million business

Basic idea: To build a very large business, you need a high lifetime value fo a customer (“high” is relative to industry, and acquisition costs) or a high virality (so your cost of acquired user goes down over time, not up, which is what happens to most businesses).

Very smart piece… succinct and good points. Worth reading and meditating on.

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