Sam Jacobs

The benefit, the other side of that equation, is what happens when you put in a dollar at the machine and you get back a dollar very quickly?

It means you can accelerate growth because you can put that dollar back into the top of the machine again and again and again.

And that's why we like quick payback periods.

Yeah?

How do you shorten it?

You shorten it by spending less on customer acquisition or you increase your average revenue per customer.

So those are the two ways.

So how do you do that?

Well, you know, that's a story for more than three minutes from now.

So we can talk about this and I'll stick around afterwards, but the fundamental point, because it's a,

a condensed time period is, do you know your unit economics?

If you don't know your unit economics, you should calculate them.

The next logical question you will ask is, we're a seed stage business.

We only have five customers.

Is it logical to calculate unit economics?

The answer is no, not really at that point.

But once you get past 10, 15 paying customers, you're approaching a million in recurring revenue, then it does become useful and important to calculate them.

But regardless, let's have a point of view on it.

What you should see over time at the beginning, because you're not paying yourself very much money if you're running a startup, you've got a bunch of contractors, you don't have an executive team yet, you'll see very, very high LTV to CAC.

That'll come down over time as you staff up the team.