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Tim Huelskamp - How 1440 Grew To 3.2 Million Subscribers, The Unit Economics of Newsletters, Creating Newsletters People Love, How To Acquire Subscribers At Scale, and More
Newsletter Operator
Understanding the Unit Economics of Newsletters
Unit economics in newsletters focus on calculating lifetime value per subscriber against the cost to acquire a subscriber. The ideal ratio for venture-backed companies is 3:1, meaning the lifetime value should be three times the cost of acquisition. Achieving a higher ratio is preferred, indicating better profitability. Companies aim to increase lifetime value by maximizing monetization through partnerships, sales, retention, and product improvement. Simultaneously, reducing the cost per acquisition is crucial. Successful companies constantly optimize these two metrics to enhance profitability and reinvest revenues for sustained growth and user monetization.
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