payback period

“The reason why your payback period grows as you spend more is essentially that you're exhausting the most relevant people or customers for your business... And benchmarks we've heard thrown around are roughly doubling every five million in spend.”

“But some businesses obviously have really long three or four years, which is kind of a little bit insane. It's very hard to predict how things are going to be that long”

“The better method, which I was kind of getting at was payback period, which removes the notion of lifetime, but also it could be calculated on a more granular level.”

“So if someone pays us 10,000 dollars a year, And it costs us 10,000 dollars to acquire them. We get paid back in 12 months, right? Anything above that, you start to question whether your economics work, anything below that, it's really good.”

“We set different payback periods depending on which product line and how aggressive we want to be, but these vary between, say, 12 months to 24, maybe even 36 months for that payback period.”

“The payback on these AI data centers is normally two to three years. Now, Elon has massively outperformed that with his storage deal with Anthropic where he's getting all his money back if the deal lasts a year and a bit. But normally the payback is not, it's …”