> Bootstrapping a B2C tool is hard because LTV is lower...
Can anyone speak more to the LTV (loan-to-value [0]?) metric: Does a founder want a lower or higher LTV? It seems lower is better unless the goal is to be more leveraged.
A Reddit spam tool makes $90K per year ($60K ARR, $30K one-time payments), split 50% with “a larger partner.” The founder’s prior salary was $84K, so with the revenue split and cost of operations, the business is not yet recouping its costs.
This is pretty low-grade content marketing. If his spam tool was good (to whatever degree spam tools can be good) he’d be making a lot more money.
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[ 1.3 ms ] story [ 2.6 ms ] threadCan anyone speak more to the LTV (loan-to-value [0]?) metric: Does a founder want a lower or higher LTV? It seems lower is better unless the goal is to be more leveraged.
[0] https://www.investopedia.com/terms/l/loantovalue.asp
This is pretty low-grade content marketing. If his spam tool was good (to whatever degree spam tools can be good) he’d be making a lot more money.