Manolo Alvarez

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CAC Payback Period—A Quick Primer CAC Payback Period: The amount of time (in months) that it takes to recoup the money you spent to acquire a customer. For example… You spend $2,000 to get a customer. Your average deal is $500 per month, and your business has an 80 percent gross margin, which means that you’re generating $400 per month in gross profit per customer. You can then divide $2,000 by $400 which equals 5 (the number of months it takes you to earn back your cash). Your CAC Payback Period is 5 months.   Your goal is to get your money back in 3 months or less.
Manolo Alvarez
Kpi cac
Software as a Science: Unlock Limitless Recurring Revenue Without Losing Control
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