This BLEW UP my Video Business
I want to share a marketing concept called LTV that completely change my outlook on marketing and advertising. And I think it can have a huge benefit for you in your video business.
I’ll show you the simple equation at the end, so you can calculate this for yourself. And I’ll show you inside my bookkeeping software, so you can see how I calculate this for myself.
When you get a client, as long as you do a good job, there is a good chance they’ll hire you again for a video. Most production companies and independent freelancers I know work with repeat clients all the time.
So let’s say you spend 1000 to get a client and they paid you 1500. That’s not great if you look at it like that.
But if you do some basic math and figure out the lifetime value of that client, it’s an entirely different picture.
Here is a simple way to do that math. Let’s say you’ve been in business for 3 years, even if you’re just a freelancer.
Take all the clients you have and add them together. Let’s say you worked with 30 people/businesses in 3 years.
Now divide every dollar you’ve made in the last 3 years by the number of clients.
Let’s say you made 50k a year, so that’s 150k / 30 clients
That means, on average, the lifetime value of a client is 5000 for you. Now, spending 1000 or 2000 on marketing to acquire any client doesn’t sound so bad.
Yes, some clients are only going to give you a small job, one time and you’ll never hear from them again. But some will hire you for a decade to come.
Learn the exact blueprint I used to go from a struggling videographer, to running a profitable video production business, in this one-hour free training.
https://www.filmmakingmentor.com/Vide...
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