Concept · Numerical Business Rules
5:1 LTV:CAC Ratio
Origin: David Skok
Biological Parallel
Optimal foraging theory predicts that animals should achieve at least 5:1 energy return on foraging investment—spending 100 calories to gain 500. Hummingbirds maintain exactly this ratio, abandoning flower patches when nectar yield drops below 5x flight cost. Below 5:1, population growth stalls; above 10:1 suggests underexploited resources and incoming competition. The 5:1 threshold represents the evolutionary sweet spot where acquisition costs are justified but not so low that the niche is obviously vacant, inviting invasion.