Today, I’m diving into a game-changing topic that every entrepreneur should master: understanding customer lifetime value (CLV).

If you’ve ever found yourself turning down smaller projects because they don’t meet your minimums, I urge you to pause and think bigger. The value of a client isn’t just about the project they bring to the table today—it’s about the potential they have to grow with your business over time. This isn’t just about numbers; this is about vision. It’s about playing chess while others are still stuck on checkers.

Stick with me on this one, and by the end of the post, you’ll not only see the power of CLV but also rethink the way you approach new opportunities.

Understanding Customer Lifetime Value (CLV)

Picture this: a client comes to you with a $2,500 project. It doesn’t meet your $10,000 minimum, and your gut reaction is to pass on it. But before you hit decline, ask yourself—are you looking at this as just a one-off project, or could this client become someone who invests tens or even hundreds of thousands over the course of their relationship with your business?

The key is to think beyond the now. CLV is about the big picture, not just the snapshot. It’s about relationships, trust, and the growth potential of the clients or industries you serve.

How to Spot the Opportunity Behind the Ask

So how do you determine if a client or industry has long-term potential? It’s about asking the right questions and analyzing the opportunity beyond the immediate project. Here are a few things to consider:

  1. What’s their long-term vision? Are they growing? Do they have the potential to expand their scope of needs?

  2. Can this lead to more opportunities in their industry? A single project could be your entry point into an entire niche.

  3. Is there repeat business potential? For example, website maintenance, branding updates, or ongoing marketing campaigns.

Thinking about these factors will help you assess whether to take on a smaller project as an investment in a larger future payoff.

Rethinking Your Minimums

Now, I’m not saying you should abandon your minimums entirely. But they should be flexible and strategic, aligned with the potential lifetime value of a client rather than the dollar value of a single project.

For example, if a client from a fast-growing industry approaches you with a smaller project, you might consider taking it on as a strategic move. The same goes for clients who align with your long-term goals or who could open doors to other high-value opportunities.

The Power of the Conversation

One thing I’ll always advocate for: have the conversation. Even if a client doesn’t meet your minimum budget today, a quick chat can reveal their true needs and long-term potential. It also gives you valuable practice in honing your sales and negotiation skills.

And let’s not forget—every conversation is an opportunity to leave an impression. They might not be ready to hire you now, but when they are, you’ll be the first name they think of.

So, don’t slap a price tag on your website and call it a day unless you’re drowning in requests. Your ability to uncover the real opportunity comes from those deeper discussions.

Thinking Like a Strategist

Understanding customer lifetime value isn’t just about maximizing revenue. It’s about building meaningful, long-term relationships that benefit both you and your clients. When you focus on CLV, you stop seeing projects as transactions and start seeing them as opportunities. You stop playing checkers and start playing chess.

So, the next time a small project comes your way, don’t dismiss it outright. Look beyond the surface. Evaluate the potential. And remember—every big win starts with a small opportunity.