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Startup Killer: the Cost of Customer Acquisition | For Entrepreneurs

www.forentrepreneurs.com

To compute the cost to acquire a customer, CAC, you would take your entire cost of sales and marketing over a given period, including salaries and other headcount related expenses, and divide it by the number of customers that you acquired in that period. (In For more on the topic of Viral Growth, refer to my blog post on that topic here.)

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Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

In this case, fully-burdened is not just the salary, bonus, and benefits of the sales rep, but also allocations for sales engineering support, executive support, marketing expense, and professional service expenses associate with securing the customer. Yet many B2B companies don’t have a clue.