Neon

A pay-for-performance customer acquisition tool that pays people to walk through your door, with zero upfront cost and 100% attribution. You only pay for verified Neon customers who transact business with you. Live in San Luis Obispo County.

What Neon Does

Most local businesses pay Meta and Google for clicks and impressions, and those platforms get paid whether or not anyone walks in. Neon turns that around. You pay only when a customer walks through your door and makes a purchase. Most of that money goes back to the customer as credits. Neon users also earn credits at other businesses participating in the network, so they arrive at yours with credits ready to spend.

  1. A customer walks through your door

    They find you on Neon and arrive ready to buy.

  2. You pay a CAC

    Customer acquisition cost, only for a visit with a purchase level set by you.

  3. They earn credits

    Most of your CAC is returned to the customer as credits.

  4. Neon customers spend their credits

    At your business or another Neon partner location.

How It Works

For your business

Pay for visits, not views and clicks

  • Set your own CAC for the first visit and a return visit. The first visit is worth the most.
  • Pay only when a Neon customer comes in and makes a purchase.
  • See your results. Your dashboard shows how many Neon customers came in, new or returning, and the revenue they gave you.
  • Accept Neon credits and get paid automatically. When customers spend Neon credits with you, you're paid back in full on the 1st of each month by Neon.

For Neon customers

They get rewarded for discovering local businesses

  • Find a place on the Neon app, visit and make a purchase.
  • Scan the receipt in the app to earn credits.
  • Earn credits on every visit. First visits to a new business in the Neon network earn the most.
  • Spend credits at any business in the Neon network. Credits come off the bill at checkout.
  • Credits go further when they bring friends.

Neon credits are not cash and not a gift card. Customers earn them by making purchases at Neon businesses and spend them at any business in the network.

Customer Acquisition Cost (CAC)

What it costs to win a new customer, and what they're worth.

What is CAC?

Customer Acquisition Cost (CAC) is the average amount your business spends to win one new customer. Imagine spending $500 on Instagram ads in a month. If they bring in 20 brand-new customers, your CAC is $25. Tracking CAC helps you tell whether your budget is driving profitable growth or burning valuable cash.

Example

$25 CAC

$500 in ads ÷ 20 new customers

CAC = Total Marketing & Sales Expenses ÷ Number of New Customers Acquired

The Golden Rule: Only count brand-new customers. A regular who clicks your ad was already yours.

The balancing act: CAC vs. LTV

CAC only tells half the story. Compare it to Customer Lifetime Value (LTV): the total a customer spends with you from their first visit to their last.

LTV = Average Spend per Visit × Visits per Year × Years They Keep Coming

  • The Target 3:1 Ratio: Your customer should bring in triple what it cost to get them.
  • The Danger Zone: If CAC is equal to or higher than LTV, you lose cash on every new sale.
  • Example: A guest who spends $40 a visit, six times a year, for three years, is worth $720. At 3:1 you can afford up to $240 to win them.
Setting your price (CAC) on Neon

On Neon, you set two prices: the first visit and a return visit. You pay only when a Neon customer comes in and makes a purchase, and most of your CAC goes back to that customer as credits.

Divide your LTV by three to find your ceiling, then set your first-visit price near the top of the benchmark below. Keep the return-visit price lower, enough to bring them back.

Industry benchmarks
BusinessHow they usually win customersAvg. CAC
Yoga & Boutique StudiosIntro-week offers, social ads, influencer partnerships$638
GymsOnline ads, free trial passes, direct mail$277
Fine DiningPR agencies, influencer hosting, VIP event sponsorships$180
Casual Dining / BarsLocal social ads, community events, happy hour promos$125
WineriesTasting-room events, tourism listings, wine club perks$60–$120
Pizza / Fast CasualMailed coupons, local search ads, delivery app listings$83
Coffee / BakeryFoot-traffic locations, first-visit discounts, loyalty apps$27

Where you are matters. Average restaurant CAC by location:

$73

College town, like San Luis Obispo

$165

Tourist destination

$180

Waterfront

US averages for paid advertising. Per member for gyms and studios, per guest for restaurants, per visit for wineries. Sources: Focus Digital (restaurants, location, gyms, studios), ChowNow (coffee), CellarPass (wineries).

Getting Set Up on Neon

Five steps to your first Neon customer.

  1. Create your business profile. Name, address, hours, a short description, your logo and a banner. Our AI assistant helps you set it up in seconds.

  2. Set your CAC. Choose what you pay for the first visit and return visits.

  3. Add a card for your Neon charges. This is how you pay for the visits Neon brings you.

  4. Set up your payout account. This is how you get paid by Neon when customers spend credits with you.

  5. Receive your welcome kit and pick your launch date. We provide display materials, feature your business on our social media and tell Neon users you've joined.

Payments run through Stripe

Steps 3 and 4 happen inside Stripe, the payment company behind millions of businesses. You enter your details directly into Stripe's secure forms. Neon does not collect or keep your card number, bank account numbers or Social Security number.

Step 3 · Your card

Card number, expiration date, security code and billing ZIP code.

Step 4 · Your payout account

Stripe asks for the following before it can send you money.

WhoWhat Stripe asks for
Your businessLegal business name, business type (LLC, corporation, sole proprietor), EIN (or SSN for sole proprietors), business address and phone, and a short description of what you sell with your website or social page
The account representativeThe person managing the account: legal name, date of birth, home address, email, phone, job title and the last 4 digits of their SSN
Owners of 25% or moreName, date of birth, home address and ownership percentage for each
Your bank accountRouting number and account number for a checking account in the business's name

Why Stripe asks. Stripe is required by its regulators and financial partners to verify every business it pays out to. These “Know Your Customer” checks help prevent fraud and money laundering. If Stripe can't verify someone from these details, it may ask for a full SSN or a photo ID.

Stripe requirements as of October 2026 for US businesses. Sources: Stripe Support, “Business Rep/Owner Tax ID requirements for US Companies” and “2024 updates to US verification requirements.”

Questions? Talk to us →

Our Partners

Businesses already on Neon.

  • Sinor-LaVallee
  • Shuck Shack Wine & Oysters
  • Mr. Rick's Avila Beach
  • The Custom House Avila Beach
  • Mission Pizza Avila Beach
  • Kelsey See Canyon Vineyards

Ready to join?

Download the app and set up your business in minutes.