How to Analyze User Acquisition Metrics Like a Hedge Fund Manager

  1. Is my spend on customer acquisition ROI positive?
  2. How should I finance my ad spend?
  3. How do I keep scaling until I max out the opportunity?

Do I have a machine and does it print money?

  1. How many days is it before I breakeven on my ad spend?
  2. When should I determine the cutoff day, the point at which the majority of LTV has been recovered, and anything beyond becomes just a bonus? Understanding this will help you calculate your overall ROI formula.

Typical LTV Curve

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