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Supplement Business Success Metrics: Optimizing CAC, Payback, and Contribution Margins

Supplement Business Success Metrics: Optimizing CAC, Payback, and Contribution Margins

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Key Takeaways from This Episode:

  • Know Your Numbers – Success in the supplement space comes down to understanding three key financial metrics:
    1. Customer Acquisition Cost (CAC)
    2. Payback Period
    3. Contribution Margin
  • Kaak (Customer Acquisition Cost):

  • Most supplement brands spend $70–$120 to acquire a customer. That number affects cash flow and growth — and it’s heavily influenced by your website, ads, targeting, and conversion rates.
  • Payback Period:
    The time it takes to recoup your Kaak. Healthy brands aim for 3–6 months. Longer payback = cash crunch. Faster payback = faster growth.
  • Contribution Margin:
    This is the profit left after variable costs. Successful brands often hit 30%–60%, with 50%+ being ideal for scale. If it’s below 30%, scaling will be tough.

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After working with dozens of dietary supplement brands, I've uncovered the three critical funnels needed for success.

Click here to discover the 3 funnels that can help your health supplement business succeed.

If you're interested in working with me one-on-one to improve your supplement business. You can learn more at my website https://creativethirst.com

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