CAC Formula
CAC = (Marketing + Sales spend) / New customers. Example: $5k / 10 = $500 CAC.
Benchmarks by Channel
Organic: $100-500. Paid ads: $200-2k. Outbound: $300-1.5k. Partnerships: $50-300. Referral: $50-200.
Healthy CAC Payback
SaaS: 12-18 months healthy. Services: 3-6 months. Ecommerce: 6-12 months.
When CAC is Too High
If CAC > LTV, you're losing money. LTV should be 3-5x CAC for growth.
How to Lower CAC
Content marketing (1-3 month ramp). Referral programs (3x lower). Partnerships. Inbound.
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