Stop Wasting Money and Scale Your Business!
Are you spending money on advertising but feel like you're not getting the results you deserve? Here's the truth: the key to scaling your business isn't just spending more, it’s understanding your numbers. There’s one metric that can make or break your success: Cost Per Acquisition (CPA).
Let's break down how to calculate your CPA, why it matters, and how understanding it can unlock the growth you’ve been striving for.
Why CPA is the Most Critical Metric for Your Business
Many business owners especially in industries like insurance or financial services are not tracking their CPA. They’re spending money on ads but have no idea if their campaigns are working or not. This lack of clarity can lead to frustration, wasted resources, and even abandoning campaigns that are actually profitable.
Here’s what CPA measures:
The total cost of acquiring a new client. It includes:
How to Calculate Your CPA
Let’s break it down:
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Determine Marketing CPA:
For example, if you spend $1,000 on Facebook ads and acquire 10 clients, your marketing CPA is:$1,000 ÷ 10 = $100 per client. -
Add Sales Costs:
If you pay a salesperson $100 for each sale, your total CPA is:$100 (marketing) + $100 (sales) = $200 per client. -
Evaluate Revenue Per Client:
If each client generates $500 in revenue, you’re essentially spending $200 to earn $500 a great return on investment!
The Power of Knowing Your Numbers
When you know your CPA, you gain the confidence to scale your business. Imagine spending $10,000 on marketing and sales to generate $25,000 in revenue. That’s the type of clarity and predictability that transforms businesses.
But here’s the catch, many entrepreneurs don’t track these numbers. They see their credit card bills climbing and assume the campaign isn’t working, even when it’s profitable. Understanding your metrics helps you avoid costly mistakes and identify opportunities to scale with confidence.
A Real-World Example of CPA in Action
I once worked with a client who had no idea how much it was costing him to acquire a new customer. After calculating his CPA, we discovered he was spending just $80 per client while generating $500 in revenue per sale. The result? He almost abandoned a wildly successful campaign because he wasn’t tracking his metrics.
By knowing his CPA, he realized he could scale his campaign and grow his business faster than ever before.
Ready to Master Your Metrics?
If you’re not tracking your CPA, you’re leaving money—and growth—on the table. Understanding this metric is just the first step to unlocking your business’s full potential.
Take the Josh Lustig Business Quiz today, and Josh will personally review your results to show you how he can help you streamline your systems, overcome challenges, and scale your business with confidence. This is your chance to get expert guidance tailored to your unique goals.
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