Saved by Jordan Bester
How To (Actually) Calculate CAC at andrewchen
Revisiting Lifetime Value and Customer Acquisition
digitalnative.substack.comdigitalnative.substack.com
As you probably know, your CAC is the total amount of money you spend on marketing (including salaries for your marketing team) divided by the number of customers you acquire over a specific time period through your marketing efforts. So if you spend $5K on staff and $3K on advertising to acquire 200 paying customers a month, your monthly CAC is $4
... See moreAndy Budd • The Growth Equation: How Early Stage Startups Can Build a Powerful Engine for Growth
We implicitly touched on customer acquisition cost (CAC) when discussing CLV, it is simply the cost of acquiring a new customer. Costs typically tucked into CAC are advertising, PR, base pay for sales people as well as commission, sales manager salaries, any on-boarding costs and any other business or industry-specific costs. The lower your CAC, th
... See moreBradley Miles • #BreakIntoVC: How to Break Into Venture Capital And Think Like an Investor Whether You're a Student, Entrepreneur or Working Professional (Venture Capital Guidebook Book 1)
The best way to measure the acquisition effect is usually by the percent of organically acquired users and the customer acquisition cost going down over time (within a network until a certain point).