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Bookshelf · $100M Leads

$100M Leads by Alex Hormozi, framework 25 of 46

LTGP to CAC

The efficiency ratio used to judge paid advertising.

Alex Hormozi's framework, from $100M Leads, pp. 220 to 234.

Work out LTGP
All money a customer spends minus the cost to deliver it.
Work out CAC
The cost to acquire one customer.
Compare
Aim for at least 3 to 1.

From chapter: #4 Run Paid Ads Part II: Money Stuff, pp. 220–234

More from this book

All 46 frameworks

Framework 26 · Exits Client financed acquisition A way to scale ads without outside money.
Framework 27 · Lead generation More, Better, New Three ways to get more engaged leads from the core four.
Framework 28 · Paid ads Rule of 100 A commitment to volume across the core four.
Framework 29 · Content and packaging Weekly testing schedule How Hormozi runs tests in every company.
Framework 30 · Lead generation Six ways to get referrals by giving more value Build goodwill by mapping the parts of an ad to the customer experience.
Framework 31 · Lead generation Seven ways to ask for referrals Combinations of incentive, form and timing that worked best for Hormozi.

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