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See when first-order cash pays CAC
Payback here is days until first-order settled contribution returns the CAC outlay. Billed LTV is not day-zero cash. If you cannot float that long, bid first-order CAC only.
Pair: Days to pay back CAC on Traffic.
How to read it
Type CAC, settled contribution per order (after COGS, refunds, fees), and new settled orders per day. Read days. Contribution per day and CAC outlay per day show the float. Surviving-cycle math sits on subscription CAC. Bid caps sit on max CAC.
What not to do
Do not count billed LTV as day-zero payback. Do not use unsettled AOV. Do not ignore MID capacity while “payback looks fine.”
Procedure
- Put CAC and first-order contribution.
- Put new settled orders per day.
- Read days.
- If you cannot float that long, bid first-order CAC only.
Failure modes
- Counting billed LTV as day-zero payback.
- Using unsettled AOV.
- Ignoring MID capacity while ‘payback looks fine.’
Worked example
None on this page yet. When one lands it will be a real case: what broke, the number, and what changed. Not a composite.
Glossary
- Payback
- Days until first-order contribution returns the CAC outlay. Later rebills are a different clock.
Work with us — We run this job on your accounts. Services
FAQ
- Can I use billed LTV for payback?
- No. This clock is first-order settled contribution only. Later rebills are a different clock.
- Is this the same as LTV:CAC?
- No. LTV:CAC is a ratio slogan. This page is days of float until first-order cash returns CAC.
- Payback looks fine — why is the MID dying?
- MID capacity and stock cover still override a pretty payback. Scale only what the account can clear.