The Busy Leaders. Acquisition cost per new client rose from $6K to $16K, peaking near $25K in September, while the normal firm stayed near $5K. If nothing changes it climbs to about $20K. Pulled, it would be back near $6K in about three months.
Illustrative. Juniper Ridge Advisory is a fictional firm with a full year of modeled data, analyzed the way we analyze yours.
How to calculate it
By channel and by sale: revenue, minus total marketing spend including the labor behind it, minus the cost to deliver, equals gross profit. Count revenue over the client's expected lifetime, not just year one.
Paid ads might bring in five clients at $9,000 each to acquire, while referrals bring in five at almost no cost and stay twice as long.
Marketing reports leads, not profit.
Move spend and effort toward the channels with the highest lifetime gross profit.
Money and time to rebuild channels.
Judging channels on first-year profit alone. Referral and partner clients often stay longer.