All language subtitles for 19 - CPA Calc V1 - lang_en

Now, let's do a calculation for the cost per acquisition.

You may recall seeing a similar spreadsheet for CAC.

But notice, here we're talking about leads.

In the CAC video,

you saw a number of paid customers.

So, that is a difference between CPA and and CAC.

The other thing I want to cover is how do I get the number of leads?

So, I actually got this from a spreadsheet where I was

tracking the number of leads from all the various platforms,

and so for say the number of leads for August,

I just added these up across the various platforms,

and that's how I arrived at the 191 number,

and so I repeat this process for each of the months and I input here.

So, to calculate the cost per acquisition,

remember these are the non-paying customers.

You just take the total sales and marketing costs,

so that's marketing costs,

sales and marketing salaries,

and overhead costs divided by the number of leads.

So, this will be this value over the number of leads,

and that gives you the cost per acquisition or the amount of money you

spend on acquiring a customer that may turn into a lead.