LTV: Lifetime Value

Lifetime Value (LTV) is the total revenue a single client is projected to generate for an affiliate or broker across their entire relationship, from first trade until they stop trading or leave. It converts the vague idea of a "good client" into one number you can plan and spend against.

For a partner, LTV is built from how much commission a client produces per period and how long they stay active. A client generating $50 of RevShare a month who stays active for 16 months has an LTV of about $800. That figure is the ceiling on what you can spend to acquire and retain them while staying profitable.

LTV is what makes disciplined scaling possible. If you know average LTV is $800, you can comfortably spend up to, say, $300 to acquire a new client and still clear a healthy margin — or negotiate a higher upfront CPA with the broker because you understand the downstream value. Without LTV you are guessing.

Because forex commission arrives over many months, LTV also protects you from misreading early data. A campaign that looks negative on day-one return on ad spend can be strongly profitable once the full LTV plays out, so the metric guards against cutting winning campaigns too early.

You estimate LTV from your own commission history: average revenue per client per period multiplied by their average active lifespan. Refined models discount future revenue and segment by traffic source, since a client from an education channel often outlasts one from a paid pop-up.

Once you have LTV, it becomes the anchor for two decisions. First, acquisition: your CAC must stay well below LTV — the LTV:CAC ratio makes this explicit. Second, negotiation: a known LTV lets you argue for a higher CPA or better revenue share with the broker, or choose between CPA and RevShare deals on the same client base.

Because both inputs shift — payout rates, spreads, retention — LTV is recomputed periodically rather than set once, and always read alongside acquisition cost rather than in isolation.