I always hear the "your LTV To CAC" ratio must be > 3.
Why? Is the assumption that the LTV is spread out over a period of time that such a low ratio would cause a low CAGR?
I'd assume if one's payback period were let's say 2 hours instead of 18 months, one'd be fine with with a LTV/CAC of let's say 1.1. Is my logic correct?
Why? Is the assumption that the LTV is spread out over a period of time that such a low ratio would cause a low CAGR?
I'd assume if one's payback period were let's say 2 hours instead of 18 months, one'd be fine with with a LTV/CAC of let's say 1.1. Is my logic correct?