This Number Dictates Your Profit Margins

Time To Read: 3 minutes

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This Number Dictates Your Profit Margins

This week has been about getting your finances in check for 2021

We started off with our guest interview with Debbie, where she talked all about how you can be financially successful in 2021 and shared her book-keeping and accountancy skils

Tuesday, I shared 3 tips that make a big difference to our gym to maxmise our profit

Yesterday, we shared what’s working for us right now in terms of saving for Tax and VAT

Today, I want to go into a fundamental thing you need to know asap in your business, so the amount you’re spending on bringing a client in is working just as it should 💸

Today I want to talk about your client lifetime value

This means how long you can keep a client and how much they’re worth over that time

Say you charge £100 a month

The first month, maybe you’re paying £100 in advertising, staff costs etc

So you break even

But then you might think, it was pointless signing that client up

And this is where you need to learn your clients Life Time Value (LTV)😎

If a business keeps a client for 6 months for example

Each client is worth £600

So say they cost £100 to sign up..as a whole they’re worth £500 to you

So consider the LTV of your clients

If you only keep a client for 2 months and it takes £100 to sign them up

You’ve only made £100 profit 😞

Figure out how long you can keep them, how much they’re worth, and how much you’re willing to spend to get them in, in the first place

If you’ve been doing this a while, you should have a good idea of how long your clients stay with you

If you’re new, keep it simple, aim for 6 months

It should be longer if you’re good at what you do! 😝

I hope this helps!

David 🙂

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Hi I’m David 🙂

I Help FitPros Around The World Generate Leads On A Daily Basis, With Lead Generating Websites, Laser Targeted Facebook Ads and “The Portal”[/et_pb_fullwidth_header][/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”3.26.6″ background_color=”#00194f” custom_padding=”0|0px|0|0px|false|false” global_module=”29642″][et_pb_row _builder_version=”3.26.6″][et_pb_column type=”4_4″ _builder_version=”3.26.6″][et_pb_text _builder_version=”3.26.6″ text_font=”|700|||||||” text_text_color=”#ffffff” text_font_size=”60px” text_line_height=”1.1em” header_font=”||||||||” text_orientation=”center” custom_margin=”||1px|||” custom_margin_tablet=”” custom_margin_phone=”||30px|” custom_margin_last_edited=”on|phone” text_font_size_tablet=”” text_font_size_phone=”40px” text_font_size_last_edited=”on|phone” text_text_align=”center”]

Let’s Connect…

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Message The Facebook Page

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Join The Facebook Community

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Message Us On Instagram

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Message Us On LinkedIn

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