

Ask HN: is CAC of ~$1 high for an early stage startup? - cac-question

Do you think a CAC of $1&#x2F;user is a high for an early stage startup?<p>thanks.
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patio11
If you're paying $1 to get someone to sign up for a game which has freemium
monetization where 2% of signups pay $1 and 0.1% of signups pay $100, then it
is unsustainably high.

If you're paying $1 to get the email address of an end-user or decisionmaker
for B2B SaaS sold on the traditional $50 to $500 a month price points, and you
don't totally screw the pooch on converting them, you're doing _very_ well.

If you're paying $1 to get leads for enterprise software, Oracle et al want to
buy you just to take those leads, because they're used to paying $10+ _per
click_.

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sharemywin
Depends on a lot of factors but its probably on the low side. if your doing a
game outside of the US you might be there but outside of that your low.

~~~
cac-question
no, it's not a game, but a service marketplace (think 99designs, ebay, airbnb,
uber, lyft type of service), so this CAC would be a cost just to get users to
sign up to the site to provide the supply and demand. Not counting if they
will be using the service.

~~~
sharemywin
Here's the thing if you can earn $3 for each one of those sign ups your doing
great. So, if only 1 out of ten of those give you $30 your doing good.

