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Show Notes
In episode #4, I discuss the meaning of the CAC Payback Period. It’s a top operator and investor metric. Cash must be allocated wisely, and the payback determines how long your capital is tied up in new customer acquisition.
- Top operator and investor metric
- Measures the months to pay back the upfront customer acquisition cost
- CAC payback inputs (cohort ARPA, recurring gross margin, CAC)
- What’s your prize? Logos, users, brands, etc.
- It’s common to gross-margin adjusted payback
- What margin to use
- Segmenting your metrics
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