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by mokkol 1177 days ago
I think it slightly works different with a dating app. In theory, if the app works you don’t need it anymore. So in their case, it is confident to offer a big discount.
1 comments

In terms of the specific, very low, multiple you're of course right - a dating app is an extreme.

But the overall principle that you should expect the discount to reflect their estimated lifetime value of a customer unless the amount is high enough that the investment return can exceed the regular income. With the exception, as noted by conradfr, that if someone suddenly offers a steep discount it could reflect an attempt to raise expensive capital fast

Assuming you're aware of those factors, it's a useful way of gaining insight into customer retention (assuming they're competent enough to run the numbers...)