Discount the Future Before You Fund It

Discounting turns CLV from wishful lifetime revenue into a funding-quality estimate. Nominal value can flatter slow payback A customer who might produce $18K over five years can still be a poor acquisition bet if the first two years barely cover CAC. Nominal lifetime revenue hides timing. Discounted CLV makes timing visible by reducing the weight of later cash flows. Margin and retention matter together Revenue is not value until you subtract the cost to serve, support, deliver, and retain the account. Then the remaining contribution has to be weighted by the chance the account is still active in each future…

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