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Business Models & Unit Economics~25 min

Does One Customer Make You Money?

A meal-kit startup is growing 20% month over month. Revenue chart goes up and to the right. Champagne.

Then someone in finance does napkin math: acquiring a customer costs $90 in ads and discounts. The average customer pays $60/month, food and delivery eat $45 of that, and half of all customers cancel within three months.

How many months of payments does it take to earn back the $90 it cost to acquire a customer?

months
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