How much is a customer worth to you?

[Hell Puppy]

You're talking customer acquisition costs I think. That's still a bit of a complex question because you're generalizing and not targetting.

But in general if we assume we are talking about a customer who has signed up for a site and what am I willing to pay to get him, then that too varies by site and potentially by source.

How many people in this business can even tell you what the average revenue per customer is? And if you know that, do you know what your lights on costs are and how that gets factored across those customers? Do you know your churn? That too impacts acquisition costs.

In many site configurations in this business there are certain percentages that come right off the top of every subscription. Let's forget affiliates for a minute, that's the obvious one. But in many many cases there are royalty agreements with the content being provided whether that's a model or a studio situation like VOD.

Lots to figure in. Assming it's being played straight up, no shave, no funny business with the charges or the numbers, I'm gonna guestimate that for most healthy sites a customer is worth somewhere between $20-30 bucks. Whether it's closer to $20 or $30 is going to depend on how fast and loose they are with upsells largely.