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Yeah i think your assessment is on the right track. Performance marketing works well where ACVs are atleast $5K+ (ideal 10K+), the market is problem aware and you're not creating a new category, and shorter sales cycle tend to benefit more simply because you give Google more data to optimize on. Infact SMBs dont tend to work well for Google, it is the mid-market. SMBs typically cant afford the LTV:CACs offered by today's performance marketing or becomes unsustainable very quickly if there are no other tailwinds.

Thanks @Aniruddh Jain

When it comes to performance marketing, I've seen great success with various strategies such as content marketing and events. However, like you, I also had doubts about investing in channels like Google ads, LinkedIn, or Facebook for lead generation purposes. But let me tell you, sometimes taking that leap of faith can yield remarkable results. In my experience, the kindof deal sizes that justify investment in performance marketing tends to be in the range of USD 10k and above. The reason behind this is that the acquisition cost per lead through performance marketing can be relatively high, and it's essential to have a substantial deal size to justify that investment. However, this is not a hard and fast rule, and it can vary based on your specific industry, target market, and product offering. Regarding the maturity of the product or category, I've found that performance marketing can work well for both mature products and new categories. For mature products, performance marketing can help in capturing new leads and expanding the customer base. On the other hand, for new categories, performance marketing can create awareness and generate interest among potential customers who might not even be aware of the problem your product solves.When it comes to the target audience, performance marketing can be more suited to industries with a larger number of SMB buyers. This is because smaller businesses often have shorter sales cycles and make faster purchase decisions. However, it doesn't mean that performance marketing is ineffective for enterprise customers. It can still be valuable in reaching decision-makers within larger organizations, but the approach and messaging might need to be tailored accordingly.

Thanks @Ankit Prakash