Client Acquisition Cost (CAC)

Also called: Cost Per Acquisition (CPA), Customer Acquisition Cost

A coach spending $500 per client on Facebook ads but only charging $300 for a single session has a math problem, not a marketing problem. – COACHILLY MAG Share on X

Definition

Client Acquisition Cost is the total amount of money and resources you spend to win one new coaching client. You calculate it by dividing your total marketing and sales expenses over a given period by the number of new clients you signed during that same period. If you spent $1,000 on ads and networking last month and landed 4 new clients, your CAC is $250.

Why it matters for coaches

Most coaches have no idea what they spend to get a client. They run ads, attend events, and post content without tracking what actually works. Knowing your CAC forces clarity. It tells you which channels are profitable and which are bleeding money. A coach spending $500 per client on Facebook ads but only charging $300 for a single session has a math problem, not a marketing problem. When you track CAC alongside what each client pays you over time, you can make smart decisions about where to invest your limited marketing budget.

Example

Generic: “I spend money on marketing and get some clients.”

CAC-defined: “Last quarter I spent $600 on LinkedIn ads, $200 on a networking group, and $0 on referral outreach. I got 2 clients from ads and 3 from referrals. My ad CAC is $300 per client. My referral CAC is $67 per client. I’m shifting budget toward referrals.”

Related

Stop Guessing, Start Signing Clients

COACHILLY MAG’s Business in a Box gives you a ready-to-launch coaching business, from positioning to pricing to your first signed client.

Explore Business in a Box →