Customer Acquisition Cost: How to (Actually) Calculate It and Why It’s Vital for Sustainable Growth

Customer Acquisition Cost: How to (Actually) Calculate It and Why It’s Vital for Sustainable Growth

When I was 29 years old, I was pitching to investors for funding

I’d breezed through my pitch deck, million-dollar smile on my face despite my shaky nerves when they asked:

What’s your CAC?

‘Yeeeah! I got this’, I thought to myself.

CAC stands for ‘Customer Acquisition Cost’ and I had done the math. Smugly, I dropped an impressive number.

The investor’s eye’s lit up.

“Really? Wow!… But is that your Fully Loaded CAC?”

The room went so quiet you would hear a pin drop.

My jaw hung open, and I still cringe when I think of the dumbfounded deer-in-the-headlights look on my face.

All I could think was, “What the heck does fully loaded mean?”

I made a fool of myself that day.

Today I’m going to show you how to calculate your Customer Acquisition Cost – fully loaded – in just 3 easy steps so you never look like a fool in front of anyone.

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If you want to make investors drool over a stake in your company, then you’ve got to know your numbers.

See, investors want to avoid risk at ALL costs.

They’ll pass on a promising business if the founder doesn’t know the right numbers

Numbers don’t lie, and neither does your fully loaded CAC.

This is a quick dose of metrics-math. Check out the video here and don’t forget to subscribe to my YouTube channel while you’re there.

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