Calculate your agency's revenue ceiling by dividing average monthly revenue per client by churn rate to get lifetime customer value, then multiply by new clients acquired monthly. A spreadsheet at 7figureagency.com/ceiling automates the math and shows exactly where your growth is stuck.
Chapters
the revenue ceiling formula, you got to figure out a couple things. What's your average revenue per client? So that's your average monthly revenue. And then you want to figure out what's your churn rate is, and you're going to divide the average monthly revenue by the churn rate, and that gives you your lifetime customer value. If you've got a pen and paper here, I wanted to write this down. And then what you're going to do is you're going to multiply your lifetime customer value by the number of new clients that you're getting every single month. So are you landing 5 clients a month? You're getting 10 clients a month? You're adding 20 clients per month? Whatever the number is for you, that lifetime customer value by your average number of clients per month actually spits that number, which turns out to be your revenue ceiling. Kind of complicated for me to explain this to you in the abstract here on a video. I do have a spreadsheet that I put together that explains exactly how to plug this in and how to really ascertain, like, what does this mean? Where's my revenue stuck point? Like, what do I need to do next in order to move through this? And you can access that at 7figureagency.com/ceiling. And if you type in ceiling video here in the comments, I've got another video where I kind of walk you through how it works, how to plug it
