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- Appstore has traffic - People buy - my myth was that nobody would - But people are making transaction irrepective of you, you just have to be one of them offering the service - i.e People convert; then it's the question of conversion rate - and the question of getting in front of people so they can convert i.e buy shit - getting in front is CAC, and then you gotta pay for ads to to get in front, so CAC can go high is thers is competition - In Appstore land, it's all about search results and myabe lists on explore pages - so you pay for ads, and optimize your app to show higher in result page on various keywords - this cost of ads + user clicking on the ad and then installing the app, and then actually buying --> CAC - and this price we sell should at least give us back the CAC on average - Yearly - saved the day. The upfront commitment - helps with retention; we can iterate on product which is unlike anything but software; - example - $100 yearly, I can spend $100 CAC - so for $1 per install, I can get 100 install and hope for 1% conversion to yearly. - With subscription - on monthy and weekly, this works as well. but you need retention AND this has longer cycle for return which does not generate cash next month -- when you need it. -