American - Businessman | May 10, 1966 -
Many consumer Internet business executives are loyalists of the Lifetime Value model, often referred to as the LTV model or formula. Lifetime value is the net present value of the profit stream of a customer.
Bill Gurley
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If one asserts that buying customers below what they charge them is a corporate strategy, this is in essence an arbitrage game, and arbitrage games rarely last.
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Marketing executives like big budgets, as big budgets make it easier to grow the top line.
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It is critical to bundle all future variable costs of supporting the customer in order to fairly estimate the future contribution.
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