Mosaic Group · B2C · app portfolio company
Count only 2-4 years of revenue per user and require fast payback early on
Conservative at worst; high LTV:CAC shows how much more spend cash could unlock
Workedanalytics-attributionpaid-social
What they did
Always cap LTV at a set number of years (e.g. start at 2 years, extend to 3-4 as the company matures) because you must get paid back and future dollars are worth less. Early-stage: payback period is the primary filter (make money back in month 1 or within 3 months), with LTV:CAC as a secondary check; a high LTV:CAC under a tight payback signals that finding liquidity would unlock growth. Later-stage: manage to an LTV:CAC threshold (e.g. 2-3x) and treat payback (possibly 12+ months) as a sanity check.
What happened
Guest says capping makes life simpler and at worst is conservative.
In their words
Sub Club by RevenueCat · Why Most Apps Hit a Revenue Ceiling (and How to Plan for It) — Patrick Falzon, The App Shop“So, we did cap it, I would advise people to cap it.”
“When you're later in your life and you have more money in the bank, you could potentially think about, you know, if maybe you started at a 2-year LTV, maybe you start expanding that to a 3- or a 4-year LTV and being okay having a 12-plus-month payback period.”
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