Total Lifetime Value of a user: $6/mo x 22 mo. lifetime = $132
Acquisition Cost of user: $40 affiliate or advertising
Lifetime gross profit of user: $92
But never underestimate marketing. Building the best widget in the world means nothing if no one knows it exists.
(that being said having the best widget in the world is, in itself, a great marketing tool)
I'd love to hear a talk on the tech journey of DropBox.
Advertising I saw: Tons of teens dancing with Xobni signs around the edges of the Microsoft campus. Planes circling Seattle, with signs trailing behind them. Radio ads. Bus ads. TV commercials. Tons of shit plastering Bellevue.
It was impressive to say the least. I'm probably one of the most difficult consumers to advertise to, and I nearly wanted to try the product after seeing that advertisement campaign.
Anyways, nothing for me to say about the product, just the advertising.
http://blog.seattlepi.com/microsoft/archives/202911.asp
They seem to be courting Redmond.
[1] It was an email from an address I don't recognize using a first name that no one I know has.
