What is Customer Acquisition Cost (CAC)

One of the most fundamental aspect of any business is getting customers. It may like an easily thing to do. But believe me when I say its not.

What I see most start-ups and small businesses do is run Facebook or Google ads and let those platforms do the heavy lifting of getting those ads in peoples faces. And it works most of the time. And those are some of the best platform to create product awareness.

The most important thing in business is not how many customers you have, but how much does it cost you to GET and keep them. Lets say you have a start up that makes shoes. And you want to create brand awareness. So you spend $30 to run ads on either Facebook or Google. And because of that ads you were able to get 10 people to buy your shoes. Now if the profit that you make from those shoes is not more $30 then you’re at lost. So be always sure the profit you get from selling a product is more than the cost of getting those customers.

There are creative ways, and platforms that helps you get customers at cheaper or no cost at all and one of them is https://www.venmun.com which allows you post your products and services at no cost and whenever someone needs those products or services they can contact you or place the order directly on the platform. Another way is growing your social media pages organically i.e without ads. Or have a website and ensure it is SEO optimized. But them important thing is MAKE SURE YOU DON’T SPEND MORE TO A CUSTOMERS THAN THE PROFIT THE CUSTOMER GIVES YOU