Ryan Urban
๐ค SpeakerAppearances Over Time
Podcast Appearances
Yeah, so CPA, and you got to look at the different swatches in the market.
So for an enterprise customer, like, hey, what do we think are... So I'll do a bottom-up analysis.
I'll say, okay, well...
Say we have a certain reps who do the sales for an enterprise client.
What do we think that enterprise client could pay us?
Say it's like $15,000 a month, right?
I'll say, let's look at just the first year alone.
say we do a one-year contract and look at the first year.
Now let's, let's look at what our contribution margin dollars on it or contribution margin dollars or contribution dollars.
Um, so say our gross margin is 80%, right?
Um, so, and if it's 15 K, I'll say, let's, let's look at it.
Um, so let's times that by let's times that by 12 and that's 180 K. But, um,
say the margin is 80% of that.
So let's kind of reduce that a bit and say we're at a number about $150,000.
That's the amount of profit I was making a year.
Now, if we can close, say if we can close 20% of those very warm leads, let's kind of divide that.
Now we have the breakeven value is $30,000 for very qualified enterprise demo.
Now, what's a good CPA for that?
So in our case, we were historically under $1,000, which means that we weren't investing enough money in marketing.
So now for that particular Swatch in the market, now we're at about $3,000.