How to Stop Guessing and Start Scaling (This Simple Formula Changes Everything)

As entrepreneurs, we are in the business of sending dollars out the door with strict instructions for them to come back with friends attached.

But too many consultants I talk to aren't clear how much they're sending out, if any, and how much is coming back with friends.

They're guessing, really, and they underestimate how much they can afford to spend to acquire a client.

They either:
❌ Try to acquire clients on the cheap—limiting their ability to grow.
❌ Hesitate to invest in marketing or sales because they don’t know the numbers.
❌ Aren't charging enough—when, in reality, they could charge more and create a much higher client lifetime value (LTV) than they have now.

But, if you know your LTV, you’ll never worry about marketing costs again.

BTW, if you want to command premium fees, here's how.

The Math That Unlocks Unlimited Growth

Imagine this:

👉 If you knew for certain that every new client was worth $60,000…
👉 …Would you hesitate to spend $5,000 or even $10,000 to acquire them?

Of course not.

Yet, most consultants fail to do the math and end up playing small.

To help you get this right, here's what I have for you in this issue:

🛠️  How to Stop Guessing and Start Scaling: The simple formula that can change everything (use it for your clients, too)
🛠️ The "Client Acquisition Math Made Easy" prompt: Your step-by-step plan to help you scale with confidence

Let’s break it down step-by-step, so you can determine exactly how much you can invest to acquire a client and still be wildly profitable.

Step 1: Calculate Your Client Lifetime Value (LTV)

Your LTV is the total revenue you’ll earn from a client over their entire relationship with you.

Use this formula:

💰 LTV = (Average Revenue per Client per Month) × (Average Client Retention in Months)

🔹 Example: If you charge $5,000/month and your average client stays 12 months, your LTV is:
$5,000 × 12 = $60,000.

Why this matters:

• If your LTV is $60,000, you have far more room to invest in client acquisition than if you only focused on the first payment.
• You stop stressing about upfront costs—because you know your long-term profitability.

✅ Your Action Step: Calculate your LTV right now using your own pricing and retention numbers.

Step 2: Determine Your Max Acquisition Cost (CAC)

How much should you spend to acquire a client?

The general rule: You can safely invest up to 33% of your LTV in client acquisition.

Use this formula:

💰 Maximum CAC = LTV × 0.33

🔹 Example: If your LTV is $60,000, you can spend up to $20,000 to acquire a client and still be highly profitable.

Yet, most consultants panic at spending even $500 on marketing.

Why this matters:

• If you only focus on “cheap” marketing, you’ll miss out on premium clients.
• If you know your numbers, you can outspend competitors who don’t.

✅ Your Action Step: Run this formula for your business. What’s your maximum acquisition cost?

Step 3: Calculate Your Break-Even Point

Your break-even point tells you how long it takes to recover your acquisition cost.

Use this formula:

💰 Break-even = CAC ÷ Monthly Revenue per Client

🔹 Example: If your CAC is $10,000 and your client pays you $5,000/month, you break even in:
$10,000 ÷ $5,000 = 2 months.

Every month after that? Pure profit.

Why this matters:

• You stop fearing upfront investment—because you know when profit kicks in.
• You can scale faster by reinvesting earnings into client acquisition.

✅ Your Action Step: Calculate your break-even period.

Step 4: Invest With Confidence—And Scale Without Stress

🚀 The difference between consultants who scale vs. those who struggle?

The ones who scale know their numbers—and invest in growth accordingly.

Now that you know your LTV, max CAC, and break-even point, ask yourself:

💡 Are you spending enough to acquire clients—or are you limiting your growth?
💡 Could you confidently invest more in ads, referrals, or outbound sales to grow faster?
💡 Are you thinking long-term, or are you still playing small?

Most consultants dramatically underinvest in acquiring clients—not because they can’t afford it, but because they don’t understand these numbers.

Now you do.

✅ Your Final Action Step: Decide one area where you’ll invest more confidently in client acquisition this month.

Want to dive deeper? Check out these related articles:

🔎 How to Get Paid a Premium for Your AI-Powered Consulting Services
🔎 How to Command Premium Fees with a Tool that "Monetizes the Gap"

You might also find these interesting:

👉 3 Steps to Marketing Success in Your Consulting Practice
👉 Your AI Tool Isn't What You Think It Is

P.S.: When you're ready, here are more ways I can help you...