An overarching assumption that you have made here is that the entire $X ARPU has to come from the end consumer. If you look at large consumer internet companies (think OTTs, horizontal ecommerce companies etc.), a significant portion of their revenues comes from Ads and other partnerships and not directly from end consumers. Good platforms make almost a third of their net take rate from these other revenue streams, which reduces the burden of selling more to the same customer.
agreed, which is why a "$100mn startup" should be looked at holistically, not purely from a consumer lens.. you can make a $100mm start up by opening up multiple revenue streams and leveraging your low ARPU user base in other ways than direct sales to them.
Abhishek grammarly saying there are lot of grammatical errors
An overarching assumption that you have made here is that the entire $X ARPU has to come from the end consumer. If you look at large consumer internet companies (think OTTs, horizontal ecommerce companies etc.), a significant portion of their revenues comes from Ads and other partnerships and not directly from end consumers. Good platforms make almost a third of their net take rate from these other revenue streams, which reduces the burden of selling more to the same customer.
Sure. but they aren't consumer really then. Their buyers are B2B.
agreed, which is why a "$100mn startup" should be looked at holistically, not purely from a consumer lens.. you can make a $100mm start up by opening up multiple revenue streams and leveraging your low ARPU user base in other ways than direct sales to them.