Page 88 - My Marketing Sucks Book

right thing by the way I handled that whole night but I didn't expect anything like
this.

I don't even remember the exact amount of money we made that night in

commissions, but I know it was at least of a few thousand dollars. That was only
on their first investments that night. They came back and invested more later.

It's amazing how important it is to treat everybody the way you want to be
treated.

You never know where that's going to lead you, but it will always lead you to a
better place.

Chapter 14. What Does It REALLY Cost?

What is the cost of acquisition (CAC) and why should you care?
How much does it cost you to get a new client/customer/account/patient? The
cost of acquisition is really important to your business. You need to know what it
is and look to keep it as low as possible.

Many times business owners just guess at what the cost of acquisition is per
client. Worse, it is either unknown or ignored.

You would be foolish not to know everything about your staff, products and
services and your competitive market. A viable business model to acquire
customers is a core element for any startup or established business.

Whether your business becomes super-successful or a total flop will come down
to balancing two variables:

a) Your Cost to Acquire Customers (CAC), and
b) Your ability to monetize those customers, or Lifetime Value (LTV) which we
discussed earlier.

If yours is strictly an online, web business, these numbers are pretty easy to
measure.

However there is a lot of value in looking at these same metrics for more
‘traditional’ businesses. They can be a bit harder to calculate.