Don't Forget to Allocate Your CAC

Episode notes

In episode #330, Ben explains one of the most common and costly SaaS finance mistakes: failing to allocate CAC between new and existing customers. This oversight leads to misleading KPI’s, inaccurate CAC payback, flawed LTV to CAC ratios, and unreliable unit economics. Ben walks through exactly how to allocate CAC the right way, how to segment sales and marketing expenses, and why this matters for accurate revenue efficiency metrics and due diligence. Key Topics Covered Why fully burdened sales and marketing expenses are required for accurate CAC The danger of pushing all sales and marketing expenses into CAC without allocation How to allocate CAC between new customer acquisition and expansion How to segment sales teams (hunters vs.