All other things being equal, a plumber or mechanic isn't better because his/her customers are returning every 3 months instead of every few years.
Likewise, I'd rather use a dating website to meet a long-term partner (and cancel my subscription) than go on a bunch of unsuccessful dates leading to short term relationships (keeping my account open).
A dating website that is delivering what customers want /should/ have low retention. A dating website with excellent retention has probably decided retention is more important than getting their users into long-term relationships.
In the context of the article, all things aren't equal because:
new business != startup
Startups in the sense the author describes do not include ordinary plumbing and mechanical companies because such companies lack a capital structure that could allow growth to a publicly traded entity. The second example company is in a good business and it's owner can buy a boat. It could never IPO.
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All other things being equal, a plumber or mechanic isn't better because his/her customers are returning every 3 months instead of every few years.
Likewise, I'd rather use a dating website to meet a long-term partner (and cancel my subscription) than go on a bunch of unsuccessful dates leading to short term relationships (keeping my account open).
A dating website that is delivering what customers want /should/ have low retention. A dating website with excellent retention has probably decided retention is more important than getting their users into long-term relationships.
In the context of the article, all things aren't equal because:
Startups in the sense the author describes do not include ordinary plumbing and mechanical companies because such companies lack a capital structure that could allow growth to a publicly traded entity. The second example company is in a good business and it's owner can buy a boat. It could never IPO.