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Daniel Priestley
@DanielPriestley
Founder of @DentGlobal & @itsScoreApp | Entrepreneur of the Year | 7x business books | Multiple 7 & 8 figure ventures/exits | Mission to develop entrepreneurs.
Joined August 2008
18.1K Following    88.5K Followers
If you spend money to win customers, you need to be using this ratio. The head of growth lives and dies by a metric called CAC to LTV, which is the cost to acquire a customer relative to the lifetime value of that customer. For most businesses with a decent margin, you want this at 3:1. For every $1 you spend acquiring a customer, you want at least $3 back in lifetime value. Spend $1,000 acquiring a customer, you'd better hope they spend $3,000 with the business. Obviously it can be much better than that - spend $1,000 acquiring a customer who spends $10,000, and the maths changes entirely. As the business owner, you're the head of growth. Which makes this your number to know. And the fastest way to move that ratio in your favour is a better pitch. This video breaks down how your pitch can start the selling before the conversation even starts:
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