The Game with Alex Hormozi

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

Nov 14, 2025
In this insightful discussion, Alex Hormozi dives deep into the concept of Customer Acquisition Cost (CAC) and its crucial role for business profitability. He highlights common miscalculations by entrepreneurs and shares real-world examples from email outreach to paid advertising, breaking down costs associated with each. Listeners learn essential action steps to calculate and diagnose their CAC efficiently, paving the way for smarter scaling. The closing remarks emphasize the importance of understanding CAC for long-term growth potential.
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INSIGHT

CAC Is The Core Profit Lever

  • Cost to acquire a customer (CAC) is the fundamental measure of how much it costs you to make money.
  • Small differences in CAC can scale into massive revenue gaps between companies.
ADVICE

Calculate CAC By Channel Monthly

  • Calculate your CAC exactly each month by channel instead of guessing from ad spend alone.
  • If you haven't been tracking CAC, start now and break it down by acquisition method.
ADVICE

Include Every Cost In Outreach CAC

  • Include all direct costs for outreach: payroll, software, and sales commissions when calculating CAC.
  • Divide total channel cost by new customers to get the true CAC per customer.
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