Jon Lee

So our LTV to CAC is, you know, in the mid to high single digits.

Yeah, so to the listeners, I mean, what you want to do in a SaaS business is have a profitable acquisition machine so that the value of your customer exceeds the cost to acquire that customer.

So the greater that multiple is, the more profitable your product actually is.

Mm-hmm.

um and so for us you know we focused um primarily on building you know great channel relationships like our relationship with google um and as a result you know we're able to uh get a lot of um referral traffic um through the various means that i just mentioned you remind me john a lot of brandon bruce for who we had on from serious insights who's kind of doing the same strategy except he's doubling down on the salesforce app exchange instead of google apps

Yeah, and I think at different phases in the company, you'll see different LTV to CACs.

So, you know, in the beginning, you know, your product is not going to be as mature.

It's going to be more difficult to sell.

You may not have those 666 channels, in which case it's important actually to invest to be able to get your customer to come to the door and use your service because having that product feedback is really important.

Yep.

As you find that product market fit, you know, the next question then is to be able to create a scalable sales team and marketing team to be able to make that profitable.

How big is your team right now?

Our team is about 67 people.

Okay.

It plans to get to north of 100 by the end of the year.

So it's very ambitious.

Growing fast.

We do over here.

And I think what you find as companies mature is that you get diminishing marginal returns, which means that, you know, as you add more customers or your rate of new customer growth increases, then the cost to acquire also increases as well.

So we see convergence of LTV to CAC, you know, towards the three to four range.