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Jeff Brathwaite (@jbrath)

Twitter Bio:: CEO of 2 The Next LEVEL, Inc. Helping Solopreneurs and Small Businesses use Web 2.0 Technology Tools
Location:: Atlanta, GA
Website:: http://2thenextlevel.com/blog/about-2/jbrath/

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Online Marketing: How Much To Spend

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Are you promoting a product online with a finite budget? Or maybe you need to follow a measurable marketing plan at your larger company? Imagine you have $5,000 per month for online marketing – how do you go about spending this?

Let’s say, I am selling a software product for $100 per month subscription. How much would I pay for a new additional customer? In other words, if I can simply pay to acquire another 40 or 50 customers per month, what would I be willing to part with?

To answer this, you should calculate the “Life Time Value” (LTV) of your paying customer. In other words, how many months does one customer continue paying