Read time: 2 minutes

Hey!

Sam here 👋

Have you ever heard the phrase “Whoever can spend the most money to acquire a customer wins”?

It was coined by Dan Kennedy, one of the marketing OGs, and is often quoted by Russel Brunson.

It took me a while to wrap my head around it.

After all, the best marketers are the ones who are able to reduce CAC, right?

Not so fast…

When I began my journey into the startup world, I worked as a performance marketer.

My goal was to optimize and reduce acquisition costs as much as possible.

And it worked like a charm — for a while.

But once I wanted to scale, I hit a wall.

I started to struggle to keep our costs low.

And worse…

Even when we hit our CAC targets, we ended up losing customers shortly after because of high churn.

Why?

Because I was optimizing for the wrong metric.

And more importantly, I was asking the wrong question.

But then, it hit me.

What if instead of fighting to keep my CAC low, I started focusing on profitability (even if it meant spending more)?

A “low” CAC can’t stay low forever.

As you scale, you will start reaching colder audiences who are not familiar with your product.

As a result, you’ll also need to test different messaging, creatives, and landing pages.

What got you here, won’t get you there.

Instead of fighting it, get ahead of it.

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Ideas to stay profitable while your CAC rises

🎁 Supercharge your offers

• Create bundles

• Offer free shipping

• Give discounts for bulk orders

• Surprise your customers with gifts

🏆 Optimize pricing tiers

• Offer different plans to overcome different needs.

  Learn from Zoom’s tiered pricing. This attracts customers across different segments, helping to improve acquisition costs. Don’t create a one-size-fits-all pricing model.

💰 Maximize your LTV

• Switch to a subscription model

• Leverage organic channels to bring down blended CAC

⏫ Focus on upselling and cross-selling

• Identify opportunities to up-sell to a higher-priced product or cross-sell complementary products/services.

  For example, a gym may offer personal training sessions or nutritional support to new members.

Remember: it’s not about spending less, it’s about spending strategically and becoming profitable.

That's all for now!

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Whenever you’re ready, there are 2 ways I can help you:

• Work with me 1:1 to help you build the growth engine needed to scale your business to $10MM ARR. Let’s chat.

• Get unstuck in 60 minutes in a high-intensity session to solve a specific challenge. Book a strategy call.

Until next time 👋

Sam