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    CAC(Customer Acquisition Cost) for Indie Hackers/mSaaS

    HyunGun Jung
    5 replies
    Have you tried calculating CAC for your product? What was your estimate and how did it go? I would love to hear about any insights or experiences you may have with optimizing CAC for your business. Your knowledge and expertise would be very helpful.

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    Sven Radavics
    intribe | Tinder for Brand Partnerships
    intribe | Tinder for Brand Partnerships
    Hi HyunGun, In the beginning I'd chose the easy way to calculate CAC. Customer Acquisition Cost = Cost of Sales and Marketing divided by the Number of New Customers Acquired for a specific time period. Again, in the beginning I'd keep it simple. Look for tactics that go hand-in-hand with each other and focus on high ROI marketing tactics. High ROI tactics I'd start with is blogging, a referral program, partnerships. Depending on how early you are I'd do cold outreach. Referral programs only start to deliver once you have somes users, but they definitely bring down your CAC as you go. Blogs take a while to deliver, but they stack over time. Lifting your DA will give you something to offer your partners. Which will then accelerate your user acquisition. Partnership and referral marketing is some of the highest ROI tactics you can deploy and if you make the most of those, along with supporting content you'll have an immediate impact on your CAC.
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    Madeleine Nichols
    your post reminded me of this recent article on PLG, real gems in here with a view to reducing CAC! https://www.lennysnewsletter.com...
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    Nuno Reis
    That is a good question, We actually built a Unit Economics calculator to help some startups with CAC and LTV: https://uptiq.app/ue What's important about CAC and LTV I found is that those values kove and are expected to move. You can improve them bit by bit. So even if you can't figure them out with 100% accuracy you can still work from an estimation. Hope this helps :)
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    Fidel Avendano
    I've found that calculating CAC for my product was a bit challenging at first, but after some trial and error, I managed to lower it by optimizing my marketing strategies and focusing on organic growth through content creation and word-of-mouth referrals.
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