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My First Million cover image

MrBeast of Gardening!? How The Plant Daddy Built A $27M+ Garden

My First Million

NOTE

Understanding Negative CAC in Business

Negative Customer Acquisition Cost (CAC) occurs when a business generates revenue through a customer acquisition channel that actually earns money instead of costing money. In a typical business, CAC represents the expense of acquiring a customer, which can range from 20% to 80% of revenue. However, in cases like a media business, such as creating content on YouTube or blogs, the content itself becomes the customer acquisition channel, leading to a negative CAC. This creates a unique competitive advantage as the business generates income while acquiring customers.

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