How much is a new client worth?

flexpaydude · Jun 21, 2012

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?

Danny1111 · Jun 21, 2012

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

poweronics · Jun 24, 2012

Danny1111 said:
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

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

How much is a new client worth?

flexpaydude

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Danny1111

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poweronics

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