Class 9 Notes Essay
Peter Thiel’s CS183: Startup - Class 9 Notes Essay Here is an essay version of my class notes from Class 9 of CS183: Startup. Errors and omissions are my own. Credit for good stuff is Peter’s entirely. Class 9 Notes Essay—If You Build It, Will They Come? I. Distribution is something of a catchall term. But for whatever reason, people do not get distribution. There are two closely related questions that are worth drilling down on. The first thing to do is to dispel the belief that the best product always wins. II. Before getting more abstract, it’s important to get a quantitative handle on distribution. Customer lifetime value, or CLVAverage revenue per user (per month), or ARPURetention rate (monthly, decay function), or rAverage customer lifetime, which is 1 / (1-r)Cost per customer acquisition, or CPA CLV equals the product of ARPU, gross margin, and average customer lifetime. The basic question is: is CLV greater or less than CPA? III. A. Consider advertising for a moment. B. C. IV. A.
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