Three Uses for SaaS Guides
Posted: Thu Feb 06, 2025 6:42 am
I should stress that these are just guidelines and there are certain situations where it makes sense to break them.
Months-to-Recover-CAC
A key job of a CEO is to decide when to put your foot on the gas pedal. The value of these two guidelines is that they help you understand when your SaaS business is doing well and it makes sense to cameroon mobile database put your foot on the gas pedal. Alternatively, if your business is not meeting the guidelines, it’s a good indicator that more adjustments need to be made to fix the business before you can expand.
Another way to use these two guidelines is to evaluate different lead sources. Different lead sources e. Google AdWords, TV, radio, etc. have different associated costs. This guideline can help you understand if some of the more expensive lead generation options make financial sense. If they meet these guidelines, then it makes sense to accelerate on those sources assuming you have the cash. Using the second guideline, and working backwards, we can see that if we are getting paid $500 per month, we can afford to spend up to 12 times that amount or $6,000 to acquire the customer. If we are spending less than this number, you can be more aggressive and invest more in marketing or sales.
Set a high enough budget for each ad set so that the ads can reach about 3000-5000 impressions individually. You need this large a sample size to stabilize your cost per click CPC.
Months-to-Recover-CAC
A key job of a CEO is to decide when to put your foot on the gas pedal. The value of these two guidelines is that they help you understand when your SaaS business is doing well and it makes sense to cameroon mobile database put your foot on the gas pedal. Alternatively, if your business is not meeting the guidelines, it’s a good indicator that more adjustments need to be made to fix the business before you can expand.
Another way to use these two guidelines is to evaluate different lead sources. Different lead sources e. Google AdWords, TV, radio, etc. have different associated costs. This guideline can help you understand if some of the more expensive lead generation options make financial sense. If they meet these guidelines, then it makes sense to accelerate on those sources assuming you have the cash. Using the second guideline, and working backwards, we can see that if we are getting paid $500 per month, we can afford to spend up to 12 times that amount or $6,000 to acquire the customer. If we are spending less than this number, you can be more aggressive and invest more in marketing or sales.
Set a high enough budget for each ad set so that the ads can reach about 3000-5000 impressions individually. You need this large a sample size to stabilize your cost per click CPC.