Gary Vee on The Perils of High CAC and Low LTV: Avoiding Business Failure. #businessgrowth #metrics
A short YouTube clip (uploaded by Kyle Balmer, Mar 13, 2023) featuring a monologue—attributed to Gary Vaynerchuk—warning that businesses with good customer acquisition cost (CAC) but low customer lifetime value (LTV) will fail. The speaker emphasizes that acquiring customers is insufficient if retention is poor (example: needing four months to recoup CAC but customers leave after ~2.5 months) and notes the additional risk when ad costs (Instagram/Facebook) rise. The clip stresses that LTV/retention is under-discussed compared with CAC.
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