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How much is a new client worth?

Discussion in 'Offline Marketing' started by flexpaydude, Jun 21, 2012.

  1. flexpaydude

    flexpaydude Regular Member

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    I've read many threads about the challenges of cold calling, hiring commissioned sales people, telemarketers, etc. to generate more new clients.

    At the end of the day, I'm curious what the "lifetime value" is for a new client. What I mean is, how much will a new client pay for your services, for how long, and how much do you actually profit from a new client on average?

    Example:

    New client pays $300/mo. for "consulting".
    Your average new client stays with you for 17 months.
    Your cost to service the client is $100/mo.

    So in very simple terms, the lifetime value of that client would be $200 x 17 months, or $3,400.

    How much would a client like this be worth? How much is your average new client worth?
     
  2. Danny1111

    Danny1111 Elite Member

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    honestly in the long run having clients that only pay $100-$300 a month are not all that profitable

    * those clients are more sensitive to rankings changes // don't help you much with content and don't tend to update their websites
    * the profit becomes very low if you outsource

    Clients in the $800 - $2000 are much more valuable - because you have a budget to be able to do most things and still make a profit for your time and knowledge... even if you turned it into outsourced client.

    Speaking for myself here : I really am only interested in businesses that can afford $1000+ a month - because like I said when your dealing with competitive terms you got to have content to support the rankings + any outsourcing you do - and when they are $1000 a month or more they tend to have someone working there who will work with you on the content / social media (big help)

    GL
     
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  3. poweronics

    poweronics Jr. VIP Jr. VIP Premium Member

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    I agree and it is a must to prepare a feasibility report first before going for a long term client.