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Cashload Acquisition Quickly
- Do aim to "cashload" acquisition by making back acquisition costs within the first 30 days of a customer.
- Use early net free cash to pay credit lines so you can scale even when capital constrained.
Boardwalk Energy Drink Example
- Alex describes two girls handing out a thousand free energy drink cans a day on the boardwalk and asks about their math.
- He walks through their labor and product costs to compute a per-can delivery cost of about $0.50.
Free Samples Can Scale Profitably
- Free sampling can be profitable if a small percentage convert to high-LTV customers relative to distribution cost.
- Alex shows 40 converted customers from 1,000 samples can produce far more lifetime value than sampling expense.