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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