SEO StrategyvsCustomer Acquisition Cost (CAC)

SEO is the practice of optimizing your website to rank higher in search engines for terms your customers are searching. Unlike paid ads, organic search traffic is 'free' after the initial investment and compounds over time. SEO drives 53% of all website traffic, and the first Google result gets 31.7% of all clicks. For SaaS companies, SEO-driven customers have a 14.6% close rate vs 1.7% for outbound leads.

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 classic trap is 'keyword stuffing' and chasing vanity keywords. Ranking #1 for 'best project management software' sounds great, but if your product is for construction companies, you're attracting the wrong audience. Also, ignoring technical SEO (page speed, mobile-friendliness, crawlability) means great content never gets indexed.

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.

Start with a topic cluster strategy: pick 5 broad topics your audience cares about, then create 10-15 long-tail articles per topic linking back to a pillar page. Use Google Search Console (free) to find queries where you rank #4-15 — these are your biggest opportunities. Aim for 1,000 organic monthly visitors within 6 months, then 10,000 within 18 months.

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.