Starting a SaaS company and scaling a SaaS company are two very different things.
The same is true for “scaling” a SaaS company in the very early days vs. scaling a SaaS company through the growth phase.
And since every company is different and experiences those “phases” at different times in different ways, you have to be careful with blanket statements about what works and what doesn’t.
Everything is situational, which is why when you read a post where the author says Customer Acquisition Costs (CAC) doesn’t matter, you need to understand the big picture.
Perhaps what you missed was when he said they don’t matter in the early days.
Or maybe you missed the part about how that post was talking specifically about heavily-funded startups with 6-figure Annual Contract Values (ACV) and an Enterprise sales model.
The reality is, every person that writes about SaaS metrics is doing so with certain situations in mind and if you aren’t in the situation the author is talking about, then you may wish to consume that writing with a pinch of reality salt.
Not because what the author said isn’t true, but because it might not be true for your current situation… for your current reality.
Which is why when my friend Aaron Bird, CEO and Founder of Bizible (they’ve raised $10.5M since mid-2011), was talking about how a SaaS company’s Customer Acquisition Costs (CAC) Strategy (and Efficiency) is key to scaling I asked him if he’d share that with the world… and he did.
I have a couple of things to add in the Afterword below, but for now I’ll turn it over to Aaron…