Money, Pricing & Model
Unit economics & modeling
Know what a customer costs and earns.
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My business has a big upfront cost per customer that pays back over months. How do I model CAC payback period so I don't run out of cash?
CAC payback is how many months of contribution margin it takes to earn back what you spent acquiring a customer, and it directly drives how much ca...
How do unit economics differ when I'm building for Indian customers versus selling in dollars to global users?
Indian pricing power is lower and payment costs, GST, and support expectations shift your margins, so a model that works at 50 dollars a month can ...
How do I model unit economics for a marketplace where I have to acquire both supply and demand?
A marketplace has two CACs (one for each side) and its economics only work when the take rate on transactions eventually covers both, so you must m...
Investors keep asking about my "magic number" and payback efficiency. What are these and do they matter at my stage?
The magic number measures how much new recurring revenue each rupee of sales and marketing generated, and it's really a sales-efficiency check that...