Lifetime Value (LTV)
Lifetime Value (LTV) is the total revenue a single client generates over the entire duration of the relationship, from first payment to last.
LTV = average monthly revenue per client × average client lifetime in months. For retainer-based B2B services (ghostwriting, LinkedIn management, consulting), LTV is the primary metric that determines how much you can sustainably spend to acquire a new client.
The two levers for LTV: increasing average contract value (charge more per month) and increasing retention (keep clients longer). A client on a $2K/month retainer who stays for 6 months is worth $12K. The same client on a $3K retainer who stays for 9 months is worth $27K. Improving both simultaneously is more impactful than doubling the number of clients.
For LinkedIn-based services, LTV tends to be underestimated because it doesn't account for referrals. A single high-LTV client who sends two referrals effectively multiplies their LTV by 3×. Building referral into the service delivery process. A specific ask at the 90-day mark, a referral incentive, a regular "who else should be doing this?" conversation, is one of the highest-ROI retention activities available.
Related terms
- Customer Acquisition Cost (CAC)Customer Acquisition Cost (CAC) is the total cost of winning one new paying client, including time, tools, ad spend, and any other resources invested in the sales and marketing process.
- Closing RateClosing rate is the percentage of qualified sales conversations (discovery calls, proposals, or presentations) that result in a signed contract or payment. A core metric for sales process health.
- Nurture SequenceA nurture sequence is a series of messages, emails, or touchpoints designed to maintain a relationship with a prospect over time without a direct sales ask.
See lifetime value (ltv) in practice
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