Moisturization real quick, if you are a business owner that has a big old business and wants to get to a much bigger business,

going to $50, $100,000 plus we would love to talk to you.

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What's going everyone? If you've ever struggled to figure out all the different numbers in marketing and figure out what's important, what's not important, what's good, what's bad,

and you just can't get your stuff to convert or you can't make sense of all this stuff, then this video is for you.

Welcome to the game where we talk about how to get more customers, how to make more per customer, how to keep them longer,

and the many failures and lessons we have learned along the way. I hope you enjoy and subscribe.

So when I got into marketing, there were so many different numbers, KPIs, CPL, CPC, like CTRs, I was like, I had no idea, my head was spinning, I was trying to figure it out.

Over time, it starts to distill down, what are the big buckets of things that matter?

And then once you discover those three are, then you can open up the drawer and look for more details and whatnot.

And so what I want to do is outline the three numbers that I'm looking at at a high level in any business that I'm looking to invest in or I'm looking to partner with or whatever.

And I'll show you the relationship between them that I am looking for and hopefully that will help you for your own business.

So the first number is what my cost of acquisition is, which I call a CAC.

All right, that's what people call it, right? Cost of acquisition or CAC.

So how much does it cost me to acquire a customer?

Now, this number should include everything. So that means your sales commission, that means your ad spend, it means the marketing team that created the increase, whatever.

Your software that's associated with it, it's all of the costs of acquisition put together. That is CAC.

Number two is LTV. Now, I define this a little bit differently because I think it's important.

So LTV is not the total revenue that I'm going to get over the life spend of a customer, but for me it's the total gross profit that I'm going to get over the life spend of a customer.

So let me give you a simple example. So if I were selling meals, for example, or selling food, and my cost of delivering food, let's say, was nine bucks.

And I know that someone's going to order $700 a month of food, and it costs me $9, and I'm selling it for 10.

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