<ul><li>Sales and marketing (S&M) is an investment in growth rather than an expense that reduces current profits.</li><li>S&M is intended to generate future revenue, making it a significant investment for early and growth-stage companies in gaining market share.</li><li>High S&M spending with positive ROI contributes majorly to sustainable growth and profitability longitudinally.</li><li>There is a clear positive correlation between a company’s gross margin and the amount spent on S&M, as evident in selected 10 leading SaaS companies.</li><li>The LTV/CAC ratio is an excellent metric for evaluating the health of S&M spending.</li><li>Treating S&M as an investment, such as amortizing costs over the customer lifetime, can help businesses uncover profitable business models that focus on generating value from customer acquisition.</li><li>S&M spending generates a positive return when the LTV/CAC ratio is around 3:1.</li><li>Optimizing growth strategies and recognizing S&M as an investment can help businesses achieve long-term success.</li></ul>

S&M is Not an Expense, but an Investment

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