Client Acquisition Cost For Business

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It is really important to know what your Client Acquisition Costs are for your business and by this I mean what does it take to get a client from being a non-paying prospect to a paying customer? You have to take into account all of the costs (overhead and expenses): networking memberships, associations costs, food, drinks, gas, insurance, advertising, printed materials, online advertising and memberships, salaries and most of all and the often most neglected item; YOUR TIME (especially if you are out doing the networking and sales calls)!

Here is an example:

  1. You are a member of a networking group – $300 per year.
  2. You only go 11 months a year or 48 weeks.
  3. Meet weekly for breakfast – $12 per week = $576 per year.
  4. Your time at $50 per hour and 2 hours per meeting – $4,400 per year.
  5. Handout 10 business cards weekly at $0.12 each = $57.60 per year.
  6. Handout brochures 2 weekly at $1.00 each = $96 per year.
  7. Gas and Insurance on vehicle = $2,000 per year.
  8. Total cost: $7,429.60 per year.
  9. No. of clients from the groups 25.
  10. 10. Cost per client = $297.18

Most importantly write down what your hourly rate is $__________.

Now, work out all the other associated costs in terms of bringing a client on in your business!

Food for thought: How does this relate to what you can give away in your highly structured REFERRAL PROGRAM as money or gifts?

If you pay a referral fee of $150 for the above scenario you are still $147.18 ahead!

When you know your C.A.C. you can pay healthy referral fees! Don’t be CHEAP!


you can email colin at Colinsprake@gmail.com

Author: Colin Sprake is the CEO of Make Your Mark, a Canadian company of live seminars, online entrepreneur academy and live accountability groups that have helped 10,000’s of Entrepreneurs achieve rapid results in small business growth and development. Colin is a best-selling author of ‘Entrepreneur Success Recipe’ and trains for BMO, Sun Life Financial, Scotia Bank, T.D. Bank and lives by the tagline Business With Soul – putting heart back into business!
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