3:1 is viable, 4:1 is healthy, 6:1+ means you are under-investing in growth. Mass-affluent advisers typically hit 6-10:1; HNW firms 8-20:1.
Ranges
- Under 3:1: unsustainable, fix CAC or LTV - 3-4:1: viable, modest growth - 4-6:1: healthy - 6-10:1: under-investing - 10:1+: accelerate spend
Watch-outs
LTV based on churn assumptions - stress test with 1.5x industry churn before committing to aggressive CAC.