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CAC (Customer Acquisition Cost)

How much it costs to acquire one customer

What is CAC (Customer Acquisition Cost)?

Total marketing and sales spend divided by the number of new customers acquired. In crypto communities, organic growth keeps CAC near zero, but paid campaigns in competitive niches can push it to $50-200+. Always benchmark against LTV.

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In plain words

"Think of it like the cost of throwing a party to make one new friend."

How it works

CAC = Spend ÷ New Customers. Aim for LTV:CAC > 3:1

Key takeaways

  • Include ALL costs: ads, tools, team time

  • LTV:CAC below 3:1 means you're overpaying

  • Track by channel to kill what's unprofitable

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Real-world example

You spend $3,000 on ads and acquire 45 new paying users. Your CAC is $66.67. If your LTV is $200, your 3:1 ratio is healthy. But if CAC creeps above $100, fix acquisition fast.

Related terms

LTV (Lifetime Value)

Total revenue a customer brings over time

ROAS (Return On Ad Spend)

Revenue generated per dollar spent on ads

Funnel

The journey from awareness to conversion

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