Their CAC (Customer Acquisition Cost) is usually very high, just think about it. Aside from the subway ads that have ridiculous costs, they usually offer youtubers the equivalent of a year’s subscription for each conversion. They also have to factor in operational costs so they’ve to keep new customers around for 1,5-2 years to reach break-even, only after that they’ve profit. Their business is based on a CLV (Customer lifetime value) that greatly exceeds the average for a B2C digital service - in order to survive they’re either doing shady stuff with your data OR living of VC hype money.
Yes, but what I said previously applies Their service costs 60€/year. That’s about 830 new customers required just to pay the subway ad, do you believe they’ll be able to sell 830 new full-year subscriptions a month? I don’t believe it. And I’m not even factoring operational costs.
I’ve even seen Duckduckgo billboards and whatnot. If they can afford it, so can Mullvad.
It really turns my head upside down how is this possible, how does a VPN company has enough market / potential customers / money for this.
Because they charge 5€/month for it?
Their CAC (Customer Acquisition Cost) is usually very high, just think about it. Aside from the subway ads that have ridiculous costs, they usually offer youtubers the equivalent of a year’s subscription for each conversion. They also have to factor in operational costs so they’ve to keep new customers around for 1,5-2 years to reach break-even, only after that they’ve profit. Their business is based on a CLV (Customer lifetime value) that greatly exceeds the average for a B2C digital service - in order to survive they’re either doing shady stuff with your data OR living of VC hype money.
Mullvad only do limited advertising and afaik don’t sponsor youtubers
You call a subway ad “limited”? Are you aware of the prices on those?
I don’t mean limited by price, I mean limited as in they don’t just shove ads everywhere like nordvpn or whatever.
Compared to how every single video ever is sponsored by nordvpn
And a whole network subway ad will cost you at least 50k upfront :P
$50k isn’t that much for a company. Mullvad is pretty popular, so I’m guessing they could afford it.
I’ve even seen Duckduckgo billboards and whatnot. If they can afford it, so can Mullvad.
Yes, but what I said previously applies Their service costs 60€/year. That’s about 830 new customers required just to pay the subway ad, do you believe they’ll be able to sell 830 new full-year subscriptions a month? I don’t believe it. And I’m not even factoring operational costs.
So they’re both selling our data.