Saved by Jordan Bester
How To (Actually) Calculate CAC at andrewchen
What's a good LTGP to CAC ratio? Every business I invest in that struggles to scale has at least one thing in common - their LTGP to CAC ratio was less than 3 to 1. As soon as I get it above 3 to 1 (either through decreasing CAC or increasing LTGP), they take off. This is a pattern I personally observed, not a rule.
Alex Hormozi • $100M Leads: How to Get Strangers To Want To Buy Your Stuff (Acquisition.com $100M Series Book 2)
The first metric is cost per acquisition, or CPA. How much money does it cost you on average to get a new customer? If I’m running Facebook ads to sell a copy of my book, how much money does it cost to sell that book? If I’m spending $20 in ads to sell a book, my CPA is $20.
Russell Brunson • Dotcom Secrets: The Underground Playbook for Growing Your Company Online with Sales Funnels
How much does it cost to acquire each customer through this channel strategy? How many customers are available through this channel strategy? Are the customers you are getting through this channel the ones you want right now?
Gabriel Weinberg • Traction: How Any Startup Can Achieve Explosive Customer Growth
In 2020 so far (Q1 and Q2), NYT has spent $113.4 million on marketing and has acquired 1.2 million new subscribers. This implies a customer acquisition cost (CAC) of $94.51*. If the introductory offer is $4 per month for a year and the full price of $17 after that, their payback period is ~15 months.