How much tren e to take

I have already written a post on what Gurley meant and intended when he wrote this essay on the lifetime value model. In my blog post https:///2016/10/14/a-half-dozen-more-things-ive-learned-from-bill-gurley-about-investing/ I discuss issues like the game on the field problem. A “growth at virtually any cost” mentality can be dangerous and deadly for a startup. There is no hard and fast formula that determines the right level of paid spending on growth. High customer acquisition cost can quickly become uneconomic. The benefits of hyper growth eventually start to reflect an S curve most notably when the benefits of a network effects start to decline. At a point an additional user of a system no longer generates the same benefit it did when the company was smaller and had fewer users. For example, an incremental new user when you have only thousands of customers is worth far more than when you have millions of customers. Growth is still important but hyper growth driven by an outsize paid customer acquisition cost is no longer financially supportable. The goal of a business at that point should be greater organic growth driven by the sticky and viral growth engines.

How much tren e to take

how much tren e to take

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