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About A Smart BearThe LTV metric overcomplicates and misleads. Learn why you should use other SaaS metrics instead.
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A Smart Bear · Jason Cohen
articleprincipleSource excerpt
About A Smart BearThe LTV metric overcomplicates and misleads. Learn why you should use other SaaS metrics instead.
This is a limited feed-provided excerpt, not the full original work.
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Treat LTV cautiously rather than as a definitive measure of SaaS economics. Its complexity can obscure assumptions and produce misleading confidence; favor simpler, directly observable metrics when making decisions.
If acquisition, pricing, or investment decisions depend on a fragile LTV estimate, small assumption errors can lead founders to allocate scarce capital poorly.
Choose one decision currently justified by LTV. List every assumption behind the calculation, then ask: which directly observed SaaS metrics could support this decision with fewer assumptions?
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