Nate TilleyCo-Founder, ROAS · Direct Response Expert

Focus on cost per acquisition and lifetime value—everything else is just noise. 🚀

Name: Focus on cost per acquisition and lifetime value—everything else is just noise. 🚀
Uploaded: 2025-02-03T22:40:00+00:00
Duration: 53 s
Channel: Nate Tilley
Description: Nate Tilley says track only two metrics: cost per acquisition and customer lifetime value. Everything else is noise. A car dealership spending $300 per…

3 Feb 2025 · 1 min

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0:53

Nate Tilley says track only two metrics: cost per acquisition and customer lifetime value. Everything else is noise. A car dealership spending $300 per sale on ads makes $3,000 gross per used car, a 10× return.

Questions this video answers

Cost per acquisition (cost per sale) and lifetime value.

Reportedly about $180 on average; speaker rounds to $300 cost per car sold for the example.

About $3,200 (speaker rounds to $3,000 for the illustrative calculation).

Approximately 10× ROI.

Chapters

There's two things I track. Cost per acquisition and lifetime value. A lot of my clients, people always ask me, like, cost per lead. Like clicks. What do you track? I don't track anything. I don't even care. There's two things I track. Cost per acquisition, meaning cost per sale, and lifetime value. Okay. If you're able to pay less than whatever the lifetime value is per cost per acquisition, then you have a multiplier on your hands. Let me give you a practical example. Garden City, Chrysler, Jeep, Dodge Ram. The dealership that I mentioned with David, Those guys are able to sell cars for, on average, $180 cost per car sold from hats. Okay, so $300 cost per car sold. Does anybody know roughly how much a used car dealership makes per transaction? Six grand. That's a good guess. A lot of times they are like six grand, but the average is about $3200. Let's call it 3000. So if they're able to spend 300, sell a car, and make 3000 on the other end, that's a 10x ROI.