@mijustin Well, you need the growth before you can get the profit. :)
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Replying to @spencerfry
@spencerfry user growth doesn’t always lead to profit. ;) Neither, it seems, does revenue growth. Groupon, Twitter, Dropbox, Square…1 reply 0 retweets 1 like -
Replying to @spencerfry
@spencerfry really? I think profit works as a metric at any scale. I can have 1 sale and be profitable.3 replies 0 retweets 0 likes -
Replying to @mijustin
@mijustin@spencerfry that's positive unit economics but not necessarily "profit", it's only profitable if you don't pay yourself salary1 reply 0 retweets 1 like -
Replying to @emmetgibney
@emmetgibney@spencerfry $2 million sale - $1 million costs (salaries) = $1 million profit Many businesses would be happy with that
2 replies 0 retweets 0 likes -
Replying to @mijustin
@mijustin@spencerfry but in SAAS you can only book revenue as you receive cash, while sales costs will be front loaded1 reply 0 retweets 0 likes -
Replying to @emmetgibney
@mijustin@spencerfry so CLTV might be $2.4m but if that's over 2 years with costs of $1.2m front loaded that customer looks "unprofitable"1 reply 0 retweets 0 likes -
Replying to @emmetgibney
@mijustin@spencerfry in spite of them being highly profitable over their lifetime. In old school enterprise sales entire CLTV booked day 11 reply 0 retweets 0 likes -
Replying to @emmetgibney
@emmetgibney@mijustin@spencerfry If you pay $1M to build a condo that collects $100k/year in rent, are you profitable? Is it a good biz?1 reply 0 retweets 0 likes
@kylefox @emmetgibney @spencerfry depends on:
1. Yearly expenses
2. How many years it collects $100k in rent
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