You have lost control of how you allocate the components of your customer acquisition cost.

The current bidding environment is the centerpiece for building a customer acquisition cost model and that environment consists of Facebook and Google. Those who understand this are excelling, those who continue to fight it are failing. In 2020 and maybe 2021, trade shows are done, networking is severely impacted, cold call prospecting is on the ropes and the decline of traditional is more evident now than ever before.

  • $38.3 Billion Dollars – 2020 Q2 Google (Alphabet)Earnings
  • $18.69 Billion Dollars – 2020 Q2 Facebook Earnings

That’s $56 Billion Dollars between the two in 90 days.

Your CAC does not start with what you will pay salespeople or what you will be investing in your internal marketing team. It starts with what you will be paying the elephant or elephants in the living room.

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