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The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch cover image

20VC: The Metrics That Matter in SaaS Today; Why CaC Payback is Flawed & CAC Ratio is Better, Why You Need to Hire Three Sales Reps at a Time, How to Forecast in 2024 & Biggest Mistakes Made Forecasting & How to Make Customer Success Sell More with Dave K

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

NOTE

The Value of What You Pay Should Reflect What It's Worth

The key insight is that what you pay for something should be directly tied to its functional worth. There is no hard and fast rule for the payback period, but it's suggested that around 24 to 36 months, people might stop calling back. The good payback period might depend on the ACV size, and the Keck-Rayshia is considered as a crucial metric for measuring sales efficiency.

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