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Answers to Frequently Asked Questions about Time to Payback CAC
Margin Adjusted Revenue is How much your customers pay on average per month
In industries where your customers pay a monthly or annual fee, you normally want your Payback Time to be under 12 months. The less time it takes to payback your CAC, the sooner you can start making money off of your new customers. Generally, most businesses aim to make each new customer profitable in less than a year.