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Profitable without growth at any price: lion share explains strategy

This food startup Löwenaktie has been profitable since 2023.
Lion’s share, collage: start-up scene, Dominik Schmitt

Mousetrap principle: tempting bait, but high risk. Many food startups that sell their products online grow primarily when they invest money in performance marketing. Performance marketing aims to get users to immediately take a concrete action, such as buying a product. Companies pay when the desired action actually takes place. However, this model has a catch: If these customers don’t order again, it quickly turns into a loss-making business.



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