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There are two ways to calculate Unit Economics for your startup: 1. Per Unit and 2. Per Customer. This video walks you through both including simple formulas, breakeven calculations, and unit economics examples from WeWork and Uber. There's also a section on calculating customer lifetime value (LTV) and customer acquisition cost (CAC).
0:00 - Intro to Unit Economics
0:10 - Two Main Types
0:48 - Per-Unit and Breakeven for Lemonade
2:33 - Unit Economics for WeWork and Uber
4:45 - Two Paths to World Domination
6:20 - Per-Customer Unit Economics
8:20 - Lifetime Value (LTV) for a Coffee Shop
9:28 - Lifetime Value (LTV) for a Subscription Business Like Netflix
11:43 - Calculating Monthly Churn
12:07 - Calculating Global CAC (Cost to Acquire a Customer)
13:01 - Calculating Campaign-Specific CAC (Cost to Acquire a Customer)
14:37 - Find Your CAC for $70
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