3248 6:53 Q&A

Q&A: “Should I spend $2,000 on retention or acquisition?”

Today’s caller runs a tiny subscription app and has two grand to spend. Should that money patch cancelations or chase new sign-ups? We’ll do the napkin math and land on a clear next step.

6:53

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Episode 3248

Picture a small online tool that brings in about twenty-seven hundred dollars every month: that’s 180 people paying fifteen bucks. A few users cancel each billing cycle—let’s say roughly a dozen. Our listener wants to know which move grows money faster: tightening the bucket so water stops leaking, or pouring more water in with paid ads.

"My bootstrapped software service has 180 paying users at $15 a month. I have about two thousand dollars to reinvest over the next quarter. Some advisors say retention is king—raise lifetime value with better onboarding and support. Others insist I need more users and should lower acquisition cost through marketing. With limited cash and time, which focus tends to deliver a faster and clearer ROI for a tiny company? How do I pick the right metric to chase at this stage without spreading myself thin?"

Listen to today's episode to learn more...

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