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what about businesses without users? Came here to say the same thing. “Your business either has a high life time value per user, or your business has a high viral co-efficient,” said Wertz, mapping out the two paths to startup success. This makes it sound like everything must be some kind of service, charged on a per/user basis. It completely ignores companies that have customers instead, who sell a product which is used by some unknown set of "users". Or to put it a different way: Facebook, Google and Twitter have users... IBM, HP, Dell, CA, SAP, SAS, etc., have customers. Not quite the same thing, but the latter still manage to make a lot of money. That said, the basic point still stands... you can either (A). have a high LTV for a given customer, or you can (B). sell to a large, and steadily expanding base of customers. I suppose you could argue whether introducing new products via brand extensions or line extensions and selling them to your existing customers is A or B or a 3rd option altogether... |