Lifetime Value of a client

Calculating the 'Lifetime Value' of a Client

Since clients are with you for the long-term, they have tremendous value. If a client pays you $1,000 a month for your services and they have the potential to be your client for the next 20 years, they have a lifetime value of $240,000!

Knowing the value of a client allows you to develop an appropriate marketing budget. Similarly, projecting the lifetime value of potential clients is the first step in determining how much to invest in a marketing plan targeting new clients. I would be happy to talk to you about the calculating the "lifetime value" of your clients. Tom Long, SolidOakConsulting.com.