I got this question the other day. Here’s how we approach it:
First, split your CAC into “Marketing CAC” and “Sales CAC.”
- Marketing CAC is the cost of converting a COLD prospect into a qualified, INTERESTED prospect (generating a demo). You can do that through outbound prospecting, ads, LinkedIn content, etc.
- Sales CAC is the cost of converting that qualified, interested prospect into a paying customer. It consists of the salary of the person closing the deal and the commission.
Second, if prospects approach you through referrals, assume your Marketing CAC to be $0. Then calculate your Sales CAC from there because there’s always a cost (or time) associated with closing a deal.
Third, if prospects approach you through content you put out, that’s Marketing CAC. Measure the time you need to spend on creating videos and writing copy to
generate 1 demo and assign yourself an hourly rate and calculate your marketing spend based on that.