Often times, we’ve heard of startups pack up a few months after launch. While passion is a real thing, the reason most startups exist is to make money, a lot of it. After a product launches, the next step is to have as many people as possible using the product, no one builds a product hoping too many people wouldn’t use it. This is where Customer Acquisition Cost (CAC) comes in, it is the amount of money spent on acquiring of the revenue generating users for a product. After launch, a startup will most probably spend money on everything that will drive sales, like expanding the sales team, getting tools that will drive sales, customer support for retention, etc. The problem begins if the CAC is higher than the Lifetime Value (LTV) of the customer, some customers are going to be one-time users, imagine if a fortune has been spent to acquire such customers. The trick is to make sure that the LTV is at least three times the CAC, and make sure that you can acquire the CAC back wi...