Bridger PenningtonFund Launch & Investment Expert

I could give away a Ferrari

22 Aug 2023 · 1 min

Watch on YouTube

0:37

A Ferrari giveaway costs $400,000 but brings in 100 subscribers at $97 a month, generating $800,000 in recurring revenue. That boost to market valuation justifies the expense and bigger marketing budgets to chase more subscribers.

Chapters

Maybe I'll give away a Ferrari to anyone. We're gonna give it to one person, but if you join and are subscribing to us for $97 a month. So if I get 100 customers paying me $97 a month, 100 people, that's not that many people. That's $800,000 of market cap that I just added to my company's evaluation. The Ferrari costs $400,000. It drives subscribers. Some of those subscribers will churn, we know that. Overall, it's gonna add a lot of market cap to us. And all of a sudden, it starts to make sense. You start to see these companies that spend huge marketing dollars to throw big events or do other things to add subscribers. Why? Because it pushes market cap higher in their business.