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Calculating Gross Profit and Customer Acquisition Cost for a Sustainable Business
The gross profit per customer is $8,000./nAcquiring a customer costs about $1,000./nIt's beneficial to invest more in customer acquisition./nA sustainable business should have a three to one or higher LTV to CAC ratio./nLooking for businesses with a 10 to one LTV to CAC ratio is recommended./nResearch studies have shown the importance of a high LTV to CAC ratio in the software world.