Subscription programs profit when customers stay long enough to justify acquisition costs. If you spend $50 to acquire someone at $27 monthly, you break even in two months and profit from month three onward. The math is simple: multiply monthly price by expected subscription length to find lifetime value.
And here's the thing with continuity programs, you have basically a couple of options because it's not just about getting somebody into a continuity program, but it's about keeping them in the continuity program. So there's a couple of things that you can do to keep them in the continuity program, but it's all about that lifetime value. How long— for how long they're staying with you, right? They're staying for 3 months, for 6 months, for a year. Then it becomes a cash flow game. Why? Because when you're running ads to a continuity program and you know that most people will stay, let's say, for 6 months, then for a $27 a month product times 6, that is $162. That is your lifetime value of a customer. Can you spend $50 to get people directly into the continuity program? You can. But what does that mean? That means that for the first 3 months, you're breaking even. So you are basically getting back your money on month 3.
