 Hi, I'm Tom Stewart with Clean Business Today and in this KPI tip we're going to demonstrate how to calculate the number of months it takes to recover your acquisition cost for a new client. We're going to go to the cleaning business today archives and use a couple of older videos that we've done to show you how to calculate the average lifetime value of a client as well as the cost to acquire a reoccurring client. So we're going to use the average lifetime value that we've calculated previously at $5,000. We need to find our gross profit off of that. So if we know our gross profit percent to sale, that's great. If not, just use your loaded payroll percent to revenue. That's a pretty good proxy. So in this case we're going to say that's 50%. That leaves us $2,500 gross profit. The $214 to acquire client is from a previous KPI video that you can see in our archives. Take the difference between the gross profit and the $214 that leaves us the amount of money that's left over after covering our direct cost plus the acquisition cost. We want to know what the average revenue per month is per client. And again, we calculate that in a previous video on how to calculate the average lifetime value. That's just revenue per job times the number of jobs per month. I need to know the number, the amount of gross profit per client per month. So I use my payroll percent to sale, and I'm going to multiply that times the revenue per client per month. So my breakeven per month is simply my investment to get that client, which is 214 divided by my gross profit per client per month, which is 1.8 months. But you could argue isn't too bad assuming that you can acquire a client for $214. If your acquisition cost is more than that, and in the example that we did in the magazine a couple of months ago, we were looking at some scenarios where your acquisition cost could be as much as $1,400, in which case it would take you over a year to pay off the acquisition cost of that client. So it's important to know how to use these numbers for a lot of reasons, not least of which is to make sure that you're making good investments on your advertising dollars. I hope that you find this KPI tip helpful. Thank you for watching Cleaning Business Today.