Unit Economics 101

Unit economics ask a simple question: when you serve one more customer, do you make money or lose it?

Two key numbers: CAC (cost to acquire a customer) and LTV (lifetime value). A healthy SaaS rule of thumb is LTV/CAC of 3 or more, with payback under 12 months.

Companies with broken unit economics can scale revenue while losing more money — growth then makes things worse, not better.