I’ve been reading about some SaaS companies recently and I was stunned by how much they spend on customer acquisition. As more and more software companies are adopting this kind of business strategy I was wondering why is so much money spent acquiring customers. Does this pay out in the long run? What is the typical acquisition cost for a SaaS customer? I’ve read somewhere that it goes up to 40 - 50% of the revenue. This is crazy. What do you think?