FIGURING OUT YOUR CAC PAYBACK TIME

Summary from the TLDR Founders newsletter

For early-stage SaaS companies with less data on long-term retention, the CAC (Customer Acquisition Cost) payback period, or the time taken to recoup customer acquisition costs, is a more practical metric than CAC/LTV (Lifetime Value), involving the careful consideration of factors such as cost inclusion, account expansions, churn, sales cycle length, and actual cash recoup time.