26 CHAPTER 3 PERFORMANCE BENCHMARKS CAC payback <3 yrs. <2.5 yrs. <2 yrs. <2 yrs. <2 yrs. <1.5 yrs. <1 yrs. <1 yrs. <1 yrs. <$10m $10-50m >$50m LTV/CAC >6.5x >5.0x >5.0x >3.5x >4.0x >3.5x >2.5x >3.0x >3.0x <$10m $10-50m >$50m Gross margin >85% >85% >85% >80% >80% >80% >75% >75% >75% <$10m $10-50m >$50m Free cash flow margin >0% >-25% >-25% >-50% >-50% >-50% >-100% >-100% >-200% <$10m $10-50m >$50m GOOD BETTER BEST