What is an average client really worth over time?
First-project value alone understates a client's real worth. This calculator projects lifetime revenue and profit based on how long clients typically stay.
What it means
"Client lifetime value" here means the total profit an average client generates over their full relationship with your agency, after accounting for gross margin — not just the value of their first project.
Why it matters
Decisions about acquisition spend, retention investment, and pricing all depend on knowing what a client is worth over their full lifespan, not just their first invoice.
Try it with your own numbers
The average client is worth about $14,000 in lifetime profit
$14,000
Client lifetime value
$35,000
Lifetime revenue (pre-margin)
14 mo
Average retention
$2,500
Monthly revenue per client
Recommendations
- Use this number to set a sane ceiling on customer-acquisition cost — spending more than a client's lifetime value to win them is a losing trade.
- Extending average retention by even a few months compounds this number more than raising monthly revenue alone.
- This justifies real investment in client retention efforts (onboarding, communication, portals) since churn is the biggest lever here.
Suggested next steps
- See how a client portal and consistent communication extend average retention.
- Run the Lead Value Calculator to connect this lifetime value back to what a new lead is worth.
Relevant Sarion features
Every client, fully organized
Nobody on the team has to ask "does anyone know where that came from?" again.
- Client records
- Notes
- Activity history
- Search
A branded space for your clients
Status-update emails go away almost entirely.
- Branded portal
- Comments
- Progress visibility
- Shareable access
What's typical
Typical small-agency client retention
12-24 months
Typical agency gross margin
30-50% after direct delivery costs
Retention as a lever
A few extra months of retention often outweighs a rate increase
What actually moves this number
- Use this number to set a sane ceiling on customer-acquisition cost — spending more than a client's lifetime value to win them is a losing trade.
- Invest in retention efforts (onboarding, communication, portals) since they directly extend the retention months in this formula.
- Recalculate periodically as your margin and retention numbers shift with team and pricing changes.
Where this usually goes wrong
- Only looking at first-project value and ignoring how long clients typically stay.
- Ignoring margin entirely and using raw revenue as if it were profit.
- Not accounting for churn risk when estimating average retention.
Common questions
How should I estimate my gross margin?
Take total client revenue over a period, subtract direct delivery costs (team time on that work, contractor costs, tools tied directly to delivery), and divide by revenue. Overhead like rent isn't included.
What if retention varies a lot by client type?
Run this calculator separately for each client segment (e.g. retainer vs. project clients) for a more accurate picture than one blended average.
How does this relate to lead value?
Lead value estimates what a new lead is worth from its first project. This calculator shows the fuller picture once that lead becomes a client — use both together.
Put these numbers to work
Sarion is where the client records, invoicing, and portal behind these numbers actually live.