The Game with Alex Hormozi

10. Cost To Acquire A Customer CAC | $100M Lost Chapters Audiobook

26 snips
Nov 14, 2025
Dive into the essentials of customer acquisition costs, where accurate tracking can reveal hidden losses and optimize growth. Discover how to calculate CAC by various channels, with insights from real-world examples like outreach and content marketing. Alex shares staggering figures, showing how paid ads can lead to higher costs. He emphasizes the importance of understanding CAC to invest wisely in the most efficient channels and then moves onto increasing lifetime gross profit per customer for greater success!
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INSIGHT

CAC Is The True Measure Of Customer Cost

  • Cost to acquire a customer (CAC) is the true measure of how much it costs you to make money from a customer.
  • Many entrepreneurs miscalculate CAC by ignoring non-ad costs and get surprised when profits vanish.
ADVICE

Calculate CAC Per Channel

  • Include all channel costs: ad spend, media payroll, creative, software, and sales commissions when calculating CAC.
  • Divide the total monthly channel cost by new customers from that channel to get CAC per customer.
ANECDOTE

Content Team Example And CAC Result

  • Two media team members at $5,000 each produced inbound leads that yielded 10 customers.
  • Including $100 commissions per sale, the channel CAC calculated to $1,100 per customer.
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