@idonthaveafather: #blackcat#tuxedocat #kittens

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Tuesday 23 February 2021 00:56:45 GMT

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AI will make marketing harder, not easier. You are looking at AI the wrong way. Sure, it can help with tasks and save you some time. But just like how the Cloud made it easier for people to create startups. It also made it cheaper. AI will do the same… it will make it easier for people to create products and services. But do you know what that does? It causes people to spend more on marketing and sales. Just look at this data from David Spitz, from BenchSights. 150%, 167%, 179%, 206%, 224%, 249%, 249%, 264% That’s data over the last 8 quarters. In other words, SaaS companies are spending $2.64 to generate $1 in revenue. Not profit… that’s just revenue. This means it would take you 2.64 years to earn back what you spent to generate that revenue… and that doesn’t even mean it’s profitable. When we surveyed 113 later-stage startups in various industries, we found that they spend an average of 27.59% of their money raised on marketing. AI may help you perform marketing tasks faster. But it also has reduced costs for startups… which means more competition and a shift to money being spent on acquiring customers.

AI will make marketing harder, not easier. You are looking at AI the wrong way. Sure, it can help with tasks and save you some time. But just like how the Cloud made it easier for people to create startups. It also made it cheaper. AI will do the same… it will make it easier for people to create products and services. But do you know what that does? It causes people to spend more on marketing and sales. Just look at this data from David Spitz, from BenchSights. 150%, 167%, 179%, 206%, 224%, 249%, 249%, 264% That’s data over the last 8 quarters. In other words, SaaS companies are spending $2.64 to generate $1 in revenue. Not profit… that’s just revenue. This means it would take you 2.64 years to earn back what you spent to generate that revenue… and that doesn’t even mean it’s profitable. When we surveyed 113 later-stage startups in various industries, we found that they spend an average of 27.59% of their money raised on marketing. AI may help you perform marketing tasks faster. But it also has reduced costs for startups… which means more competition and a shift to money being spent on acquiring customers.

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