CAC stands for customer acquisition cost, which includes marketing and sales costs.
You ideally want a low CAC. Lower the better.
Can CAC even be negative. It can actually.
If you charge for premium content, or a community, or for events, you can actually acquire customers for free.
There's more and more bootstrapped businesses doing this now.
I sort of do this with TACK today. We have a couple of premium options, a Pro Membership and Marketing Leadership Mastermind group that helps us acquire consulting customers and pay for our small collection of marketing expenses to acquire more members and customers.
The key is to have a something free that pulls people into your funnel that is actually valuable and solves a problem.
Pro Members get access to my personal vault of 400+ go-to-market resources, access to a private session with me, my private Slack channel, regular masterclasses, and my course on People-first GTM. All for $99/year. Pretty good value if you ask me.
This membership solves several problems. Two for example are, people need proven resources to help them execute and design a go-to-market strategy, and learning ways to grow customer acquisition that actually works and matches to how people buy today.
So the tip today is to try and think of a way to acquire customers for less money but getting them to pay you first.