a way to think about which channels bring profitable customers.
you're posting about your product in different places: HN, reddit, twitter, blog posts. some channels bring customers who pay and stick around. others bring tire-kickers who cancel quickly.
unit economics helps you figure out which channels are actually worth your time.
the basic model
three numbers tell you if a channel works:
LTV (lifetime value): how much one customer pays you total CAC (customer acquisition cost): what it cost to get that customer ratio: LTV ÷ CAC should be 3:1 or higher
why this matters
not all customers are equal, even if they all pay the same monthly price.
example:
- customer from HN: pays $10/month, stays 15 months → LTV $150
- customer from twitter: pays $10/month, stays 4 months → LTV $40
both cost you $0 to acquire (organic posts), but HN customer is worth 4× more.
this is why you want to focus on channels that bring high-LTV customers.
simple example
$10/month subscription app:
HN post: 30 min effort, got 8 customers, they stay 12 months avg → LTV: $10 × 12 = $120 per customer → total value: 8 × $120 = $960 → time invested: 30 minutes
reddit post: 20 min effort, got 15 customers, they stay 5 months avg → LTV: $10 × 5 = $50 per customer → total value: 15 × $50 = $750 → time invested: 20 minutes
even though reddit brought more customers, HN brought more total value AND higher quality customers who stay longer.
which guide?
web SaaS (Stripe subscriptions): → SaaS economics
iOS/macOS subscription app: → app subscription economics
paid app (one-time purchase): → paid app economics
freemium (free + IAP): → freemium economics