LTV — Lifetime Value
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contribution profit per customer, over their entire relationship with you
Max CAC at 4:1
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what you could spend to acquire one new customer and still hit a healthy 4:1 LTV:CAC
Current LTV : CAC ratio
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Behind the LTV number
Annual revenue per customer × margin × lifetime.
Annual revenue per customerticket × visits
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Annual contribution profitannual revenue × margin %
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Lifetime customer revenueannual revenue × lifetime years
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Lifetime contribution = LTV
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From the book — chapter 4
"If you don't know your LTV, you're not making marketing decisions — you're making bets. The Capitalist mindset isn't about being clever. It's about knowing exactly how much you can pay to win a customer, then paying it without flinching."