Weekend Reading: CAC, Alexander Hamilton, and Flow
This is a great overview of the importance of CAC in a SaaS business.
One of the enjoyable things about SaaS is how much you can modify and optimize what you’re doing by measuring various parts of your process, especially in SMB-focused SaaS. Marketing, early-stage sales, late-stage sales, customer success — it’s like a machine with separate stages you can tweak separately to make incremental improvements.
On the similarities between Hamilton and Edmund Burke:
“There are several significant points of contact between the two thinkers. Both Burke and Hamilton used historical experience as the standard for judging the validity of ideas and policies. They rejected appeals to ahistorical abstraction, disparaging metaphysical and theoretical speculation. Historical circumstances were paramount in their prudential judgment. Consequently, they avoided ideological rigidity in their thinking because they understood that a priori rationalism could not account for the particular circumstances in which statesmen had to navigate the ship of state.”