CAC is not broken. Your positioning is.
Everyone’s blaming CAC.
“Meta is too expensive.” “Performance is dead.” “Lead costs are unsustainable.”
But let’s be honest with ourselves. It’s not the CAC that’s broken. It’s your story, your positioning and your hook that’s weak.
At Baabae, a 10-minute delivery startup, we had scaled fast. Downloads came in. Orders flew. But our CAC was high. And everyone told me- “Bro, your CAC is broken.”
They weren’t wrong on the surface. But the truth was harder to digest. Our CAC was high because we hadn’t nailed our positioning yet.
We thought we were a delivery app. We weren’t. We were the unofficial snack canteen of the college hostel. Once we realized that, our creatives changed. Our language changed. Our onboarding changed.
And suddenly? Same channels. Better CAC. Better retention.
I’ve seen folks:
• Run discounts because product story doesn’t sell at full price.
• Recycle 2021 creatives in a 2025 world.
• Burning money on media instead of creating category differentiation.
But, Truth is :)
Meta and Google, they’re still the biggest distribution channels of our times. If your ads aren’t converting it’s likely because:
• Your product sounds like everyone else.
• Your messaging is stuck in 2021.
• Your category is over-saturated, but your positioning isn’t differentiated.
And, You can still scale profitably today, But only if your positioning:
• Stops the scroll
• Creates desire
• Converts skeptics
• And most importantly… builds a story worth paying for.
High CAC is not always the villain. Weak positioning is.
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