Quick Reference: CAC, LTV, and Payback Battlecards
Recall how to answer the most common objections and misunderstandings around SaaS unit economics.
“The LTV:CAC ratio is good, so why are you worried?” You say Because the ratio speaks to viability, while payback tells us how long cash stays underwater before the customer recovers acquisition spend. Do not let a strong long-run ratio hide a dangerous cash-timing problem. It separates “worth it eventually” from “financeable right now.” How should you separate the two metrics? Use both before scaling acquisition. Why does gross margin belong in payback? Because only contribution after direct delivery cost can recover acquisition spend. Revenue alone overstates recovery speed and makes weak channels look healthier than they are. “Can we…
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