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Here, you can see a slightly different spreadsheet,
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but it's actually building on the previous example.
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In row one, marketing costs,
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and including the cost of building,
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the ads across the street,
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ad platforms from our previous examples.
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Then, I've added in the sales and marketing salaries,
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and included any overhead costs for sales and marketing.
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So, these show up in these three rows.
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We add them up to get our total sales and marketing cost.
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So, I'm going to sum up these three cell values,
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and I'm going to copy the formula over for the other two months, September and October.
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Then, to get the customer acquisition cost,
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I'm going to take this total sales and marketing cost
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and divide it by the number of paid customer.
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So, I'm going to get back in that formula.
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So, I'm going to take this,
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divide it by the number of paid customers,
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and copy the formula over again for the two months remaining, September and October.
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As you can see in this example,
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our CAC was less than a $150 in range between 148-210.
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A good rule of thumb is that the CAC should be a fourth of your revenue.
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If you're spending more than that,
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then you are spending too much.
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So, you're spending too much to get a customer,
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to acquire a customer.
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Now, If you're spending less than that,
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you're actually losing business opportunities.
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So, this was one example to calculate the customer acquisition cost.
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