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...
What are the most common mistakes founders make when they build their first unit economics model?
The classic traps are using blended CAC to hide bad paid channels, ignoring the cost to serve and support, assuming churn stays flat forever, and t...
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...