
CAC is useless
The Revenue Formula
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The Effect of ACV on Cake Payback
If you plot it out on an ACV range instead, what you're going to be seeing is that if you are in the below 1000 euro range, what you might be shooting for is three to 12 months. It goes up to above $100,000 on the top end, it's 35 month cake payback. The reason why then the high ACVs would be coming down and, you know, being also very efficient over time is because obviously the churn rate is much lower. Michael: Why do we see an increase from cake payback? You know, this is all a ratio. Ben Murray: What we have seen and pretty consistently so is that the smaller your tickets are,
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