There are several methods to calculate LTV, with differing advantages and disadvantages. This post discuss some of the more popular methods, and the fundamental assumptions that underlie them.
Read MoreThe LTV Equation (or LTV Formula) is one of the most widely used methods of calculating LTV - it's relatively simple and illustrates the main drivers of LTV - but also makes a number of implicit assumptions and so may be unsuitable for modern startups. This post addresses the assumptions behind this method, and discusses when it should be applied or avoided.
Read MoreCAC and LTV are invaluable metrics to understand the Operations of a Startup; but they are both frequently misunderstood. We use the analogy of Jack and the Beanstalk to outline what matters in these metrics, and why they're critical to your Startup's success
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