Perpetual Traffic By Digitalmarketer | Facebook Advertising | Social Media Marketing | Digital Marketing I

How much can you really afford to pay for a new customer? The answer isn’t as simple as your Facebook ad spend. In this episode, Ralph Burns and Amanda Powell break down customer acquisition cost (CAC) and customer lifetime value (CLV) to uncover what businesses should actually be spending to scale profitably. They discuss how marketing costs go beyond ad spend, why your marketing team and operational expenses matter in CAC calculations, and how to use a 3:1 CLV-to-CAC ratio as a benchmark for growth. If you’re struggling with ad budgets, profitability, or scaling your business, this episode is a must-listen.Chapters:00:00:00 - Welcome to the Episode: How Much Should You Pay for a Customer?00:00:44 - Why Knowing Your Customer Acquisition Cost (CAC) is Crucial00:06:20 - The Simple Formula for Calculating Customer Lifetime Value (CLV)00:08:15 - How to Calculate CLV Using a Basic Formula00:10:45 - Breaking Down CLV for Different Business Models00:12:10 - How Long Does It Take to Earn Your CLV?00:14:50 - Fast vs.