Effective businesses base their acquisition spending on the total expected lifetime profit from a customer (the "back end"), not the profit from the initial sale. This allows for more aggressive and sustainable growth by reinvesting future earnings into current acquisition efforts.
By layering a series of high-value offers, you dramatically increase customer lifetime value. This higher LTV allows you to afford a much higher customer acquisition cost, effectively pricing competitors out of advertising platforms and starving them of new business.
