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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