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Michael Litt

๐Ÿ‘ค Speaker
457 total appearances

Appearances Over Time

Podcast Appearances

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

Yeah, I think I think payback period, as long as you are fully loading your CAC.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

So, you know, you cannot ignore the cost of salaries.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

And I've seen people do a whole bunch of different things.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

So, you know, historically, actually, and this may be an interesting type is is box.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

Right.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

When they when they host someone's files for free.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

In my opinion, that's a customer acquisition cost because you're paying for that content.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

But they file that away as a COG, cost of goods sold, not as acquisition costs, which lowers their CAC artificially to some degree.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

And there's multiple ways of doing this and thinking about this in your business.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

The way we do it is we want to be honest with ourselves.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

There's no reason to lie about this.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

We're not a public company.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

You know, it's, let's just make sure we're fully loaded so that when we go out as an IPO at some point, you know, our unit economics are sound.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

And so, yeah, so we fully load everything, all salaries.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

If you even like,

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

speak the word customer once in your career, you get loaded into that CAC profile.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

And we always work to keep that year and a half payback period.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

So we're really optimizing our marketing programs or spend, etc.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

Soup nuts, man.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

Awesome.