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Customer Lifetime Value (and the value of a link)

Customer Lifetime Value (and the value of a link)

Link building is not about the number of links you can attract, and not just about how much it helps your search engine performance. A good link building campaign will bring you real customers - and they’re really valuable.

Just how valuable such customers can be is revealed when you calculate the lifetime value of a customer (LTV). I was looking for a very quick explanation of lifetime value and found it over at ZeroMillion.com, Determining the Lifetime Value of and Lifetime Profit From Your Customers - even includes a useful Excel spreadsheet.

Once you have an understanding of customer lifetime value, you can really understand the value of a quality link that brings relevant traffic to your site. I’ve created a useful calculator to estimate this value over at How much business do you get from inbound links?.


Customer Lifetime Value (and the value of a link)

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