Show the ~$150 annual plan first so ad spend pays back when trials end

Anada Lakra… it's very vilified and a lot of people are against it, and I think that's taken to an extreme. And realistically, even those people are saying ads are bad are actually running ads. My experience with it is that there's a good way to run ads and a bad way to run ads. The good way to do it, I think, is to just be fully aware of your unit economics, so you're not spending money on, again, low value customers when it comes to, again, LTV over CAC.

Anada LakraSo there's quite a bit of discipline there that needs to happen to make sure that the unit economics are strong. And one really powerful thing that I have found in the process is using payback period to your advantage and making that as short as possible because it gives you upfront a lot of clarity on a user's LTV. And what I mean by that is ... When I already referred to this before with having most users by default being presented with the annual plan, as opposed to the monthly plan. What that means is that with an annual plan, we get the cash upfront from users, after their seven-day free trial. So we know right away from a particular channel, it drove this many subscribers, this is how much we spend, and then we know exactly how effective that marketing was. As opposed to monthly, where you get the initial monthly subscriber, but you don't actually know, will they retain one month or will they retain 24 months?

Anada LakraAnd different channels actually do produce very different durations by customers, especially TikTok I found to be a flimsier channel, in terms of just intent and loyalty or attention span, whatever you want to call it. So it's really helpful to have annual as a way to add that discipline, where upfront you know what your LTV over CAC is at least for the first year. And also by getting instant CAC payback, that gives you the safety that ... You can then reinvest that money directly into acquiring the next customer.

David BarnardYeah, it makes a lot of sense. Gosh, so much I want to talk about. Well, let's dive into being a 10-person team and hitting 10 million ARR as a 10-person team. How do you do that?