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How To (Actually) Calculate CAC

Andrew Chen

My good friend Brian Balfour (ex-vp growth at Hubspot) put together this incredible essays with details on how to think about it.]. Brian Balfour (ex-VP Growth at Hubspot): In everything from growth projections to company valuations, it’s common to use CAC and CPA interchangeably — but it’s wrong, and it can cost you.

SaaS 111
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Your Average CAC is Lying to You -- What to do Instead

Brian Balfour

I recently wrote about the most common mistakes with CAC (customer acquisition cost) that can derail growth efforts before you even get started because CAC is a metric that's foundational to growth strategy. For internal operations and decision-making however, average CAC is almost always useless.

Sales 71
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What to look for when you’re hiring a Head of Growth

Andrew Chen

One of the most frequent questions that founders ask is – I’ve read all about the importance of user growth, so now, how do I hire a Head of Growth? However, it’s rarely easy to hire a Head of Growth. It’s asked often for good reason. “It depends” is the right place to start.

Scaling 82
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a16z Podcast: Why paid marketing sucks, Network effects, Viral Growth, and more

Andrew Chen

In the podcast, we cover a broad overview of growth/marketing topics, including: The natural “gravity” that slows down high-growth businesses. What’s really happening beneath the surface of exponential growth curves. Organic, paid marketing, and LTV/CAC. Why blended CAC numbers are misleading.