Week 5: Sales Training

Know the total lifetime value and cost of a customer.

This exercise takes a little bit of math, but will change your perspective forever. It will help you to understand the proper discounting and pricing structure for your products/services.


If we look at the lifetime value of a customer – we make better sales, promotions, and marketing decisions.

Here are the calculation formulas to identify this number. It is multi-step math. We will do it for you.

Just send the following information

  1. How many customers have you sold to? (This allows us to decide for a real value or a projected one)
  2. How many products/services do you offer?
  3. What is the average price of each product/service?
  4. What is the average cost of each product/service?
  5. What is the annual cost to run your business?

Send those answers to roger@ygetarts.com

To keep this concept simple.

If your average lifetime customer value is $10,000, you will ask yourself better questions.

Better questions will lead to more targeted sales opportunities.

If that math were true and you needed to generate $100,000 annually, then you know that you need 10 customers to do that.

Targeting 10 focused sales in a year is much easier than a shotgun approach.

Now, you might hit that target in one month? Good. Then you have an entire year to build up margins and prudent reserves.

Also, you won’t worry about a discount. If you know someone is going to pay you $10,000 on average in a year – what do you care if you discount 10, 20 or even 30%? How many times a day would you give up $3,000 to get $7,000 profit?