Every business metric eventually reduces to one question: does the business model actually work? The LTV:CAC ratio is how you answer it with a number instead of a guess. I’ve seen businesses burning cash on acquisition while their founders swear the model is fine because their ads “look profitable.” They were measuring ROAS. They weren’t […]
The biggest scaling mistake I see is businesses obsessing over acquisition cost while having no idea what a customer is actually worth. You can’t bid intelligently on ads if you don’t know LTV. You can’t know if a $300 CAC is profitable or catastrophic without it. LTV is the number that tells you how much […]
Everyone thinks their CAC is under control. Most of them are wrong. The formula is fifth-grade math: total sales and marketing spend divided by new customers. I’m not going to insult your intelligence by pretending the formula is the hard part. The hard part is getting accurate numbers into it. I’ve seen businesses running at […]
