This was a great explanation and I am subscribing to your channel. I have a question, some business people consider LTV the profit made over time on a client and not gross revenue generated. In other words Revenue - COGS= LTV. What are your thoughts on this? Thank you.
@mapplinks
2 күн бұрын
Among the startups and companies I’ve worked with, I’ve seen both definitions. Some take the profit, others prefer to calculate basis revenue. As long as it’s defined clearly and the entire company and stakeholders are aligned I think it’s ok to make a decision on this by company. For ex most early stage startups raise funding on this ratio basis but they’re not profitable. They use revenue-based LTV and investors also benchmark against RB-LTV. My agency focuses on Profit based LTV as an example for our own purposes
Пікірлер: 2