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.
do you believe they’ll be able to sell 830 new full-year subscriptions a month?
Yes.
That’s really not a lot. LA has ~13M people in its Metro area, and ~900k weekday riders on the Metro system (not sure about the subway itself, but rail is allot 1/4 to 1/3 of that). VPNs have been getting more popular with ads and sponsorships across social media.
So I absolutely don’t think it’s unreasonable that they’ll pick up ~1k new subscribers per month while this ad campaign runs. I don’t know how many users they have (it’s antithetical for them to release that), but surely they can afford to run a small campaign like this, just given how many servers they have and some back of the napkin estimates to guess how many users would be needed to justify that number of servers.
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.
Yes.
That’s really not a lot. LA has ~13M people in its Metro area, and ~900k weekday riders on the Metro system (not sure about the subway itself, but rail is allot 1/4 to 1/3 of that). VPNs have been getting more popular with ads and sponsorships across social media.
So I absolutely don’t think it’s unreasonable that they’ll pick up ~1k new subscribers per month while this ad campaign runs. I don’t know how many users they have (it’s antithetical for them to release that), but surely they can afford to run a small campaign like this, just given how many servers they have and some back of the napkin estimates to guess how many users would be needed to justify that number of servers.
You’re assuming that every person is a potencial customer for a VPN, I hardly believe more than 1/5 of all those pedestrians would even give it time.