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Fintech Organic vs Paid Channel Comparison
Demonstrates customer-based allocation method for organic channels with no direct spend. Shows how content/SEO can deliver significantly lower CAC than paid search, with recommendations on scaling organic investment.
Input
What you provide to the skill
Fintech startup Q3: paid search $20k/80 customers, content/SEO $0 direct spend but 120 organic signups. Team costs $25k total.
Output
What the skill generates for you
True CAC Analysis - Q3 2025
Direct Costs Summary
| Channel | Direct Spend | Customers | Naive CAC |
|---|---|---|---|
| Paid Search | $20,000 | 80 | $250 |
| Content/SEO | $0 | 120 | $0 |
| Total | $20,000 | 200 | $100 |
Shared Costs Allocation
Total Shared Costs: $25,000
- Team costs: $25,000
Allocation Method: Proportional to customers acquired (since organic has no direct spend)
| Channel | % of Customers | Allocated Shared Costs |
|---|---|---|
| Paid Search | 40% | $10,000 |
| Content/SEO | 60% | $15,000 |
True CAC by Channel
| Channel | Direct | Shared | Total Cost | Customers | True CAC |
|---|---|---|---|---|---|
| Paid Search | $20,000 | $10,000 | $30,000 | 80 | $375 |
| Content/SEO | $0 | $15,000 | $15,000 | 120 | $125 |
Blended True CAC: $225 (vs. naive $100)
Industry Benchmarks
- Fintech CAC Range: $200-$1,000+ (varies by product complexity)
- Digital banking/consumer fintech: $100-$300 typical
- B2B fintech: $500-$2,000
- Healthy CAC: Should be recovered within 12-18 months
Channel Ranking
- Content/SEO - $125 (BEST)
- Paid Search - $375 (3x more expensive)
Recommendations
1. Double Down on Content/SEO (Highest Priority)
- 67% lower CAC than paid search ($125 vs $375)
- Increase team investment in content creation
- Build out SEO keyword strategy and content calendar
- Content compounds over time—CAC will decrease further
2. Optimize Paid Search
- CAC at $375 is likely acceptable for fintech, but test improvements
- Audit keywords: Remove low-intent, high-cost terms
- Improve landing page conversion rates (even 10% lift = $34 CAC reduction)
- Consider account-based search for higher-value customers
3. Measure Quality & LTV
- Track which channel produces higher LTV customers
- Paid search often brings higher intent but organic may have better retention
- If organic LTV is similar to paid, shift more resources to content
4. Content Investment ROI
- Your $25K team cost is generating 120 customers at $125 CAC
- Even with 50% more investment ($37.5K team), if you get 180 organic signups, CAC drops to $104
- Content scales better than paid—strongly consider hiring 1-2 content specialists
About This Skill
Calculate true Customer Acquisition Cost by marketing channel. Uncover hidden costs (tools, team time, overhead), allocate shared expenses, benchmark against industry standards, and identify which channels are truly profitable.
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