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unit economics are tricky though. Brand, Channel mix, referrals, PR, endorsements, and more can all effect CAC. customer service and targeting can have a huge impact on LTV.

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You're right! It can get a little tricky... Still, if you're unit economics don't work, you're going to have a hard time building a company.Disruptive business models sometimes work (and history is always written in hindsight)... But basic economic principles always hold true

The point is that unit economics are not some static thing, LTV is a product of conversion rates at each step of your funnel. Every step you improve by x% improves LTV by x% for new users (for this type of company at least).

Also, think of most small service businesses they hustle their ass off in the beginning with horrible CACs but then they start getting referrals and LTV/0 starts looking pretty good.

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I was reading the article and the whole time I was thinking that the author would eventually say something substantive about unit economics. But no.

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