SaaS Marketing - Is LTV to CAC a BS?

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LTV is supposed to be the cumulative earnings or cumulative revenue per customer. But what happens when you get something like SaaS where it's a subscription and that number grows every single month? So if you base your whole acquisition model off of this idea of lifetime value, you're going to find that actually your customer acquisition costs are not as profitable as you might think. LTV2CAC is really about how long does it take for a customer to become profitable after you've spent the money to acquire that customer on a per customer basis.

Corey got the marketing bug at college and hasn’t looked back. Now an SaaS founder and with his own newsletter, he opens up his playbook.

As writer of the Swipe Files, Corey has more than 10k subscribers and growing. He’s also the founder of SwipeWell, a tool dedicated to helping you save, organize, and reference marketing examples so you always have them when you need them most.

Daniel and Corey get into why SEO is a magic tool, why there’s always a danger in averages, and why becoming an independent thinker is the goal.

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Daniel is a Workweek friend, working to produce amazing podcasts. Find out more, visit: www.workweek.com

Timestamps:

0:00 Intro

04:23 The Race to Succeed

07:56 Solving The Annual Subscription Problem

08:26 The Magic of SEO