Scale and Loyalty are more important online than offline, which drives much of the “winner take…

Scale and loyalty are more important online than offline primarily for four reasons. 1) The fact that “CAC is the new rent,” 2) the mechanics of how the Google and Facebook auctions work, 3) the reality that customer loyalty effectively lets online companies avoid paying this “rent,”and 4) the fact that AI/ML are so important on the internet and sc... See more

Scale and loyalty are generally the most important metrics to me as an investor as they are the most sustainable — and measurable — competitive advantages. They are *much* more important online than offline, which is why the internet economy has such pronounced “winner take most” dynamics relative to the offline economy.