How to estimate how long a customer will keep paying you
New to recurring? Lifetime value sounds advanced, but you can ballpark it in three steps.
Customer lifetime is the average number of months a subscriber stays before quitting.
1. Find or estimate monthly churn (cancellations / total). Say 4%.
2. Divide 1 by churn: 1 / 0.04 = 25 months average stay.
3. Multiply by your monthly commission to get value per customer.
In plain English: a quick formula turns "how long do people stay?" into a number.
Worked example: 4% churn = ~25 months. At $6/mo commission, each customer is worth ~$150 over time, not just $6.
Today's tiny action: guess a churn rate for one program and divide 1 by it to see the average months.
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How to estimate how long a customer will keep paying you
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