Liquidity$2 500
Free Strategy Tool

Agency LTV Calculator

Retainer Client Lifetime Value

LTV : CAC Ratio5.0:1

Output Benchmarks

Project Work< $10k
Churns after 1-2 months
Retainer$50k+
Steady annualized cashflow
Partner$200k+
Embedded in client ops

How to use this Agency LTV Calculator

01

Input Data

Enter your current Agency Model metrics into the labeled fields above.

02

Analyze Ratios

Instantly view efficiency ratios calculated against elite standards.

03

Optimize

Compare your results with the Benchmarks on the right to find leverage points.

Strategic Context

THE STRATEGIC VIEW

In the agency business, LTV is often fragile due to "Key Person Risk" and client concentration. Strategic stability is achieved by moving from "Project Work" (low LTV) to "Productized Retainers" (high LTV). This model tracks the lifetime earnings potential of a client relationship over months of service.

Operational Reality

THE HIGH-TOUCH RETENTION

Agency LTV is fragile. Unlike software, Agency Churn is often emotional or relationship-based. "Key Person Risk" is huge. If the account manager leaves, the client often leaves. LTV Calculation here must factor in "Expansion Revenue" (Upselling).

PRODUCTIZING SERVICES

To stabilize LTV, elite agencies move from "Hourly Work" to "Productized Retainers". A flat $5k/mo fee is easier to renew than a variable bill that surprises the client every month. Predictability increases retention.

Tactical FAQ

TACTICAL Q&A

Q: How do I measure Agency CAC?
A: Include the Founder's time selling. If you spend 20 hours closing a client, that cost counts. Agencies often underestimate CAC by pretending their sales time is free.
Q: Project-based vs Retainer LTV?
A: Retainers have 5-10x higher LTV. A $10k project is done in a month. A $2k retainer lasts 2 years ($48k LTV). Always optimize for recurring revenue.
Q: How to increase client retention?
A: "Perceived Value" Reporting. Clients cancel when they don't *see* the work. Send a "Friday Update" every single week listing exactly what was done. Silence = Churn.
Recommended Course

Master The System

This calculator is just one tactical step. The full strategy is documented in the core protocol.

Source Lesson

Sales Engineering: Agency Model Protocol

Start Lesson →

Related concepts

#CAC#LTV#Churn#ARPU