Hernan VazquezFounder and CEO, Rapid Scale Framework · Creator of The Rapid Scale Framework, Author of Low Ticket Profits

There's only upside to life time value #advertising #roi #mediabuyer

18 Aug 2023 · 1 min

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In this segment, the speaker explains why a marketing situation where customer acquisition cost (CAC) is roughly equal to a customer's lifetime value (LTV) can be advantageous. With a minimal gap between CAC and LTV, businesses have “only upside” because they can generate additional revenue through upsells, cross‑sells, and added services. The speaker contrasts this favorable scenario with the prevalence of low‑ticket marketing funnels—particularly AI‑related products like $10 bundles of ChatGPT prompts for marketers—that often fail to be profitable due to thin margins and limited upsell potential. The overall message encourages marketers to focus on higher‑value funnels where CAC is covered by LTV and to exploit upsell opportunities rather than chasing low‑ticket, high‑volume sales that rarely break even.

Chapters

To answer your question, when there's like the gap is too small, right? The cost to acquire a customer is kind of the same as the cost to— as what the lifetime value is. I think that's a great position to be in because if you think about it, there's only upside, right? There's only upside. Right. You can have more products, you can have more services, you can have upsells and whatnot. So I really like that because there are some funnels out there, there's some marketing funnels, specifically when it comes to book funnels, or low-ticket items. You might have seen, you know, right now everything is about AI, ChatGPT, and whatnot. I was scrolling earlier today on Facebook or Instagram, and this product that was like 17 ChatGPT prompts for marketers or something like that, right? And they were selling it for like $10. And usually those funnels, they're not making any money.