Internet Marketer's Organizer Blog

One of the things you need to know and understand about is the Life Time Value of each of your customers.   

Start to have a proper understanding of Customer Lifetime Value because it’s key to the success of your business.

First you need to know  the difference between your Customers and List Members.  Your list members are everyone who joins your list.  Your customers are everyone who joins your list and buys one product from you.

Example of Life Time Value of your Customers:

 Your customers are your most valuable asset.  These are the buyers, and if someone is a buyer, they normally buy over and over again over time.

Say out of 5000 List Members, you have 2000 that have brought something from you.  You made $60,000 durning the year.  This means that each buying customer is worth $30 per year to you.

Here is an Example of the Life Time Value of your List Members:

Say in your first year you get 5000 members on your list.  Say you make $60,000 durning this year.  The value of your list member is then $12 for this year.

Now you know that for each person you get to join your list, you will make $12 for the next year.  

Right now I will be paying my Affiliates %50 on both One Time Offers.  When I know the life time value of my list subscribers, I might be able to raise the amount I am paying my affiliates, which in turn will get them to try and sell more.

Think of it this way.  If the life time value of my customer is $300, and the cost of my One Time Offer is $50.  Now %50 of the $50 OTO go’s to my affiliate, which is $25.  That means that the Life Time Value is $275 profit per customer for me.

Now if I want to get my Affliates to sell more, I know I can give my affiliates %100 of the OTO, or I have even heard of people giving more than %100 of the profit of the OTO to encourge their affiliates to sell more.

I give $50 for each affiliate sale, 100% but I still make $250 for the lifetime of each customer.

Always be thinking of ways to give your affiliates more, and in the end you will make more.

This entry was posted on Wednesday, December 16th, 2009 at and is filed under Affiliate Revenue. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.