CAC payback
3 statements across 3 episodes · 2 bullish · 1 bearish · 2 people on the record · first statement May 13, 2017 by Christina Shen · across every show →
Everything said about CAC payback, oldest first
May 13, 2017 positive
Shen: CAC payback benchmarks for SMB, mid-market, and enterprise SaaS
“If you are a mid-market company, 12 month probably is your right number. But if you're selling to enterprise and you've got hundred K ACV deals, you're driving great upsell, you should think of everything as an LTV to CAC ratio. So if you've got a higher LTV, …”
Nov 3, 2022 positive
Shen: Startups Over $5M–$10M ARR Should Prioritize CAC Payback Over Burn Multiples
“My big recommendation is for later stage companies, particularly if you're five, if not ten million AR and higher, to definitely start measuring your business by a CAC payback, because it's a true measure of new revenue that you're generating from your sales a…”
Sep 13, 2023 negative
David Sacks: CAC Payback and Magic Number are flawed and easily miscalculated
“What I was seeing in metrics like CAC, is that if the finance team simply misattributed a certain expense, then, like, it would make the CAC Payback look great... Magic number is even the worst version of this. Like, no one knows how to calculate. It was const…”