Glossary · Running the business
LTV
- Also called
- lifetime value
- customer lifetime value
- CLV
What it means
In a prop firm, LTV is unusually important because many traders buy more than once: a second attempt after a breach, a larger account after a pass, resets and add-ons. A simple LTV is total net revenue per customer over a period; a fuller version subtracts performance rewards paid to that customer.
LTV varies sharply by acquisition channel and program. Traders who arrive through education creators may behave differently from those who arrive through discount sites, so segment it.
Early-stage firms rarely have enough history for a reliable LTV. Use cohorts by month of first purchase and treat early figures as estimates.
Related terms
Read these next.
CPA
Account reset
Scaling plan
Payout ratio
Affiliate program
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