Know what a customer costs to get and what one is worth over time.
Assumes Intro to Performance Marketing. Start here anyway if you like.
Every class teaches one idea, asks you three questions on it and then puts it to work on a real company.
LTV is price times lifetime and lifetime is one over churn. Check the churn.
Payback runs on contribution. Revenue payback is the number that gets bad plans approved.
LTV to CAC rewards customers who stay. Payback rewards customers who are cheap. Know which you need.
If it grows when sales grow it's variable. Count it against the sale.
Marketing share of revenue tells you the business model. Payback tells you if it's working.
Churn sets the ceiling. New customers over churn rate is where growth stops.
Build cohorts by channel from day one. The blend hides the channel that's leaving.
Present both budgets and the gap. The gap is the plan.
Show the CFO incremental contribution on a twelve-month view. Nothing else survives the meeting.
Price falls straight to contribution. Do the break-even churn before you fear the churn.
Forecast by cohort with churn and lag. Say when it pays back before it starts.
Five lines. Spend. Tested customers. Twelve-month contribution. CAC against target. What changes.
Figures checked against the SEC's XBRL record on Sep 7 2026 unless marked otherwise. In millions of US dollars.
| Company | Period | Figure | Value | Concept checked |
|---|---|---|---|---|
| Netflix | FY2023 | Revenue | 33,723 | Revenues |
| Netflix | FY2022 | Revenue | 31,616 | Revenues |
| Netflix | FY2023 | Marketing expense | 2,658 | MarketingExpense |
| Netflix | FY2022 | Marketing expense | 2,531 | MarketingExpense |
| Netflix | Dec 31 2023 | Paid memberships | 260.28 million | from the 10-K. Not an XBRL concept |
| Netflix | Dec 31 2022 | Paid memberships | 230.75 million | from the 10-K. Not an XBRL concept |
| Netflix | FY2023 | Net income | 5,408 | NetIncomeLoss |
Ten minutes. No account. No card.
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