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Saastr

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Dear SaaStr: My CAC Has Doubled Over The Last Year. Should I Stop Hiring?

  • High CACs doubling over the last year can be concerning, but don't panic if growth and burn rate are still manageable.
  • Segment your CACs to understand if all segments are affected or just specific ones.
  • Consider payback periods to gauge the sustainability of high CACs.
  • Evaluate sales efficiency before hiring more reps.
  • Check for market saturation as a reason for increasing CACs.
  • Strategically hire roles to improve efficiency rather than stopping hiring completely.
  • Revisit budget allocation to address high CACs.
  • Set a burn rate budget and let the team decide on spending priorities.
  • Address high CACs promptly to differentiate between short-term issues and deeper inefficiencies.

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