Shah: Higher CAC is justified by the option value of unreleased products
Dharmesh Shah · On Launching a Second Product with Dharmesh Shah, CTO / Co-Founder HubSpot · Oct 8, 2020 · at 26:28
HubSpot co-founder Dharmesh Shah discusses how SaaS unit economics change when factoring in future product expansions.
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“There is a non-zero value for those customers beyond the LTV around what other things that we don't exist yet in the product portfolio that we will be able to sell them once we have them as customers. And I think that makes the math more interesting in terms of how much you're willing to spend to acquire customers. You don't want to go too crazy, but there is that option value of a future option value of kind of your product portfolio.”
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