How it is used in a coaching business
Most coaching businesses know their program price and call that LTV. It is only LTV if nobody ever buys twice. As soon as renewals, upsells and continuity exist, LTV becomes a back-end number, and it moves far more than the front end can. Doubling ad performance is hard. Getting a client to stay a second year doubles LTV on its own.
| Input | Where it comes from |
|---|---|
| Average revenue per client per month | All payments from active clients divided by active clients |
| Average months a client stays | 1 divided by monthly churn rate |
| LTV | Monthly revenue per client multiplied by months retained |
| Simpler version | First program price plus average resell revenue per client |
$4K to $50K+
client lifetime value at one program after a client success and resell system was builtSource: Video Business Academy, a client of Scale With Fulfillment. Not typical of every program.
LTV should be calculated by cohort, not as one blended number. The clients who joined this quarter under the new onboarding will have a different curve from last year's, and that difference is the return on the back end.
