A client who pays you once is worth one job. A client who stays for years is worth many. Lifetime value puts a number on the difference.
The simple version
Average amount per job, times jobs per year, times the years a typical client stays, times your profit margin. That is the profit one client brings over the relationship.
What it tells you
- How much to spend to win a client: a fraction of the lifetime profit, not the first invoice.
- Why retention pays: one more year from every client raises the value of all of them.
- Which clients to focus on: the ones with the highest lifetime value, not the biggest single job.
Our customer lifetime value calculator does the math.
This article is general information, not legal, tax or regulatory advice. Rules change; confirm current requirements with the responsible agency or a licensed professional.
