Byers: 12-month payback is safer than targeting 3x LTV/CAC
Chris Byers · 1223 Just $1m Raised and $1m+ in MRR as Formstack Grows in Indianapolis · Nov 29, 2018 · at 15:24
Formstack CEO Chris Byers explains why he prefers managing SaaS growth via payback period over LTV/CAC ratios.
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“We actually went back to the twelve-month payback because it, A, is simpler for people to understand. It's actually a little bit more conservative because you can get pretty crazy in terms of keeping a, say, three LTV to CAC ratio.”
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