hi here we go question number one here Arthur my name’s Steve Friday thanks for taking the question the question is about customers and LTV I’ve got a relatively new business so I don’t have enough data to accurately calculate my lifetime value of my customers and so I’m having a hard time knowing pain customer what my customer for acquisition is how would you go about doing calculating how much to pay for customer pay traffic right now thank you okay all right first off I am also jealous that beard I cannot grow beard otherwise I would insist I’m Steve Kalan we’re live on TV you guys all the kids got all the kids here so all right so nor anyone answers question ok so Steve that’s a great question so as question was how do you calculate lifetime value if your company’s doing your noble at time value select n values one of those like dream metrics people want to know and they always want to talk about I am NOT a big fan of vy x value of customer obviously i want to make that number bigger but I don’t want to base my advertising decisions on lifetime value because that might be six months or a year from now five years my 10 years from now and I make my decisions based on that it’s hard to be profitable lifetime value is a good metric if you are working with venture capitalists who want to give you how much money and hold onto debt and hopefully a payoff and like you know five years from now on but that’s not we’re about down right we’re about making money today so what I do I’m not looking for lifetime value I initially want to be my paid ads I’m looking for what’s my a CV my average cart value so how much money do I make on average every single person who buys one of my friend end products okay so for example someone buys the expert secrets book I know to my cost to acquire customer right now about what if I was 11 or $12 to get them to buy the book but then in the funnel in that point of sale the breakeven funnel as more in breaking as profitable but we’re making about thirty two dollars for every single book we sell so that’s the metric I’m looking at can I know I can spend up to thirty two dollars and still breakeven in the car so a CV average cart value that’s the metric and you focus on and think of out while you are doing on while you are building your company advertising around that I want to break even immediately a point of self run advertising if not means my funnel is not very good okay or some people like to go you know maybe seven days or 14 days or six yes thirty days sixty days before they break even that stresses me out if my phone doesn’t break even immediately I stop all adds to it and I try to get my funnel better so that is kind of my recommendation to you Steve that sound good all right no he wants out to my crop okay nor the mic oh nice let’s get down down – drop it drop the mic oh one more marketing secret if so then go get your copies of my two best-selling books book number one is called experts secrets and you get a free copy at expert seekers calm and book number two is called calm secrets and you get your free copy at dot-com secrets calm inside these two books you’ll find my top 35 secrets to leave you to become the fastest-growing non vc-backed fast startup company in the world

New To ClickFunnels™ But Want To Grow Your Business?

Want To Join ClickFunnels™?

Want To Take ClickFunnels™ To The Next Level?

Want To Promote ClickFunnels™ & Earn?

Today’s Question: How do you calculate how much to pay for a customer if you don’t know their lifetime value?

I’ve got a relatively new business so I don’t have enough data to accurately calculate the lifetime value of my customer. So I’m having a hard time knowing how much I should pay for each customer… How would you go about calculating how much to pay for a customer if you don’t know their lifetime value?

Watch the video for the answer, or read the transcripts here:

Watch all other DropTheMic shows here: https://www.youtube.com/playlist?list=PLoc93MnQcNN89VdU-OZNv313en5RZicOO

Follow Me Online Here:

Facebook:https://www.facebook.com/TopFunnelSecrets/
Twitter: https://twitter.com/topfunnelsecret
Profitable Funnels Group: https://www.facebook.com/groups/TopFunnelSecrets/

Blog: https://profitablefunnels.com/
Podcast: http://gurustalk.com/

How do you calculate how much to pay for a customer if you don’t know their lifetime value?

How do you calculate how much to pay for a customer if you don’t know their lifetime value?