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$100M Leads Audiobook Part 9 – Employees and Agencies | Ep 594
The Game w/ Alex Hormozi
Calculating LGP to CAC and Identifying Advertising and Sales Problems
If each customer has an LTGP of $4,000 and a CAC of $1,000, the LGP to CAC ratio is $4,000. With 30,000 leads per month, the content creation team costs $100,000. Therefore, the cost per engaged lead is $3.33. By focusing on increasing the LTGP and analyzing the CAC, you can determine if there is an advertising or sales problem. Identifying the problem can help you optimize your employees' performance. Ultimately, understanding the costs of acquiring a customer is essential.
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