Audio · 9:06

How Much Does It Cost to Get a New Customer? A Plain-English CAC Guide for Contractors

Most contractors have never calculated this number. It's the difference between a marketing budget that works and one that quietly bleeds money. Includes a five-minute worksheet you can do today.

Listen to this article 0:00 / 9:06
Narrated with an AI voice (Kokoro)
Chapters (8)

TL;DR

  • CAC is total marketing spend divided by new customers. $3,000 for 30 customers is a $100 CAC.
  • As a rule of thumb, CAC should land between 10% and 20% of your average job value.
  • Compare CAC to lifetime gross profit (LTGP): you can usually afford to spend 30% to 50% of a customer's LTGP to win them.
  • The usual mistakes: tracking spend but not results, blending channels together, and never calculating LTGP.

This narration was generated with Kokoro, a free, open-source AI text-to-speech model, using the "am_michael" voice. It was produced on our own computer, so the post text was never sent to a voice company.

Free $3K+ website. No contract.
Install the System $0 until you're live