Public RelationsvsCustomer Acquisition Cost (CAC)

Public Relations (PR) is the strategic management of a company's public image and narrative. Unlike paid advertising, PR focuses on 'Earned Media'—convincing journalists, influencers, and publications to write about your company organically. PR provides massive third-party credibility that paid ads can never buy.

CAC is the total cost of convincing a potential customer to buy your product. This includes all marketing spend, sales team salaries, tools, and overhead directly tied to acquiring new customers. The formula: CAC = Total Sales & Marketing Spend ÷ New Customers Acquired. A company spending $50K/month on marketing and sales and acquiring 100 customers has a $500 CAC. CAC varies dramatically by channel — paid ads might be $300 CAC while organic content is $30. VCs obsess over CAC because it determines unit economics: if CAC exceeds LTV, every customer you acquire destroys value.

The most common trap is the 'Self-Serving Press Release.' Sending a massive email blast to 500 journalists stating 'We just launched Version 2.0 of our app' will yield zero coverage. Journalists do not care about your product; they care about stories that serve their readers.

The most dangerous mistake is calculating 'blended CAC' by averaging all channels together. This hides the fact that your Google Ads channel might have a $200 CAC while organic has a $5 CAC. Blended CAC at $100 looks fine — but if you scale by doubling ad spend, CAC doesn't stay at $100; it approaches $200 because you're scaling the expensive channel. Always track CAC per channel. The second trap: excluding sales salaries from CAC. If you have 4 sales reps at $10K/month each and they close 40 deals/month, that's $1,000 in 'hidden' CAC per customer on top of marketing spend.

Stop pitching your product features. Pitch a 'News Hook.' Find a larger macroeconomic trend, a surprising data point your company uncovered, or a controversial contrarian opinion your CEO holds, and pitch that narrative to 5 specific journalists who write about that exact topic. Offer them 'exclusive' access to the story.

Calculate CAC by channel: Paid CAC, Organic CAC, Referral CAC, Outbound CAC. For each: total spend on that channel ÷ customers from that channel. Kill channels where CAC > LTV/3 (not LTV/1 — you need margin for overhead). Track CAC trend monthly — increasing CAC often means market saturation or competitive pressure and requires immediate investigation.