[drakaal]

If you have one employee and 4 users, it is easy to lose $300 per user per month. This isn't an issue.

If you have 1000 users and 10 employees This is a bad thing.

If you have 10k users this is a really bad thing.

Most startups in the pre-cashflow positive stage are losing pennies per user, not dollars. Few are losing $3600 per year per user.

It is hard to comeback from those kinds of numbers. It is harder to convince a VC that you will ever be able to turn that around.

Edit: I also don't think that telling a VC that you trained people to do what you think you can build software to do will fly.

If I told you we were going to launch a new search engine, but until we got the formula's worked out we were launching using human edits to the results, you'd laugh me out of the room.

[robobro]

Let's say he has ten customers. Do you really think that his company is losing $36,000 a year by finding what adwords are good for ten web resources?