The Dangers of LTV
Founder's Journal
The Pitfalls of Unsustainable Growth in Direct-to-Consumer Companies
Unsustainable growth in direct-to-consumer companies often leads to eventual collapse due to excessive spending on paid marketing. Early investors benefit initially, but later stage investors suffer as profitability becomes a challenge. These companies become reliant on paid marketing and face difficulties in acquiring customers organically. The focus on the Lifetime Value (LTV) versus Customer Acquisition Cost (CAC) creates a cycle of dependency on paid marketing, leading to unsustainable growth.
00:00
Transcript
Play full episode
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
