3min chapter

Founder's Journal cover image

The Dangers of LTV

Founder's Journal

CHAPTER

Exploring the Pitfalls of Relying on Lifetime Value (LTV)

Exploring the pros and cons of relying on Lifetime Value (LTV) as a sole metric for business success, emphasizing the significance of also understanding Customer Acquisition Cost (CAC) for entrepreneurs. The chapter highlights Bill Gurley's 2012 essay critiquing the LTV methodology and its enduring relevance.

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