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Understanding CAC Payback Period_Why do Excel visuals show two values for each year?

Reviewed multiple articles, here is a summary:
Step 1 โ€“ Calculate the CAC (Customer Acquisition Cost)

If you have not calculated CAC previously, I explain how to calculate CAC here.

=Sales and Marketing Expense/New Customers Acquired

Step 2 โ€“ Calculate the CAC Payback Period

To calculate the payback period, you need:

CAC, MRR, and ACS (or MRR * GM % of Recurring Revenue)

CAC Payback = CAC/(MRR-ACS)

Third party risks

In house tech stack (Using almost no third party tools in our software. example: cloud services. Open source projects like mongodb will be ) pros and cons

pros:

  • More secure
  • No Third party risks
  • Keeps things internal to the company
  • Faster responsive time
  • easier setup for our software
  • easier software integration
  • Much cheaper

Cons:

  • Have to account for everything in the tech stack. When software becomes large so does the work behind each functionality
  • Software features not as robust as third party tools

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