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Jeff Davis

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Turning $1,500 into $50,000

Posted by: Jeff Davis - 09/26/2018

For more than a year now, we have used the Lifetime Value Calculator to impress upon YMCAs the need for a website that has the tool kit we call The Membership Machine™. 

We believe that a website should be seen as a revenue generator, not an expense. We designed these tools to show the YMCA community the value of a single sales lead on their website.

In the default example on our website, we show that the average monthly membership rate across the wide variety of YMCAs that we talk to is $53. And the average member stays for 6 years. This means that the average Lifetime Value of a single new member is worth $3,816 ($53 per month x 6 years x 12months per year).

But you can use this calculator for a number of other purposes. Recently we were on the phone with a client who was sharing the results of an advertising campaign that brought in 21 new members. "How much did the advertising campaign cost you?"


Let's see what the ROI is on that campaign assuming a $50 monthly membership fee and a retention rate of 4 years.

So $2,400 per new member times 21 new members yields a Lifetime Value of $50,400. That is an ROI of... Well it is a lot.

The point is that we frequently look at the "cost" of a program like advertising. In fact most businesses have departments and committees to keep the cost of advertising under "control". But few businesses take the time to quantify the revenue brought in by their advertising. (And yes I know this requires effort.)

The Lifetime Value of a YMCA member is huge. I would much rather be advertising for a "sale" of $2,400 than a sale of $100. One sale of a new membership using the numbers shown above ($2,400) would pay for the entire $1,500 advertising campaign with $900 left over.

How would you like to be selling a $100 pair of shoes? You need to sell 15 pairs just to break even (assuming a $0 cost of goods). 

As marketers, it is our responsibility to measure and quantify the results of our advertising efforts. And just because the free calculator on the Thrive website says Lifetime Value of Potential Revenue on the top doesn't mean you can't use it for other purposes. 

If you are running a campaign to add new family memberships and the family monthly membership rate is $75 and families in your YMCA stay for six and a half years, up front you know that a single sales lead is worth $5,850. 

 At the end of the campaign you have signed on 12 new families. That means the Lifetime Value of your campaign is $70,200. 

If you are campaigning for singles who pay an average of $35 per month and stay for 3 years, then you know each sale is worth $1,260. How many conversions did you close? If you are running campaign targeting existing members, offering a Zumba class that meets for 6 months and costs $25 per month. you know each sale is worth $150. 

 So feel free to use our calculator to help quantify your advertising expenditures. The more we can quantify these expenses by showing the revenue potential, the easier it becomes to ask for an increase in your advertising budget.

And it is good business.

Questions about quantifying your advertising programs? Email me


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7 "Lucky" Best Practices For Email

Posted by: Jeff Davis - 09/20/2018

Recently I was asked for some "best practices" for email marketing.

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Goodwill Industries of Southeastern Michigan Launches New Website

Posted by: Jeff Davis - 08/2/2018

Goodwill Industries of Southeastern Michigan launched their new Accrisoft Freedom Website this week.

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How To Change Your Menu Listings and Pricing Results on Google Search

Posted by: Jeff Davis - 07/27/2018

I came across something recently that I thought I would share with everyone. Some of our clients are concerned that the menu and menu pricing being displayed on Google Search results are not accurate and Google doesn't disclose where they scrape their information from.

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How Does the GDPR Affect Thrive Clients?

Posted by: Jeff Davis - 05/23/2018

Europe (EU) has passed a new law called the GDPR, which has made some significant changes to how privacy & tracking is handled.

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Welcome to the Family!

Posted by: Jeff Davis - 07/14/2017

On Wednesday July 12th, 2017 Thrive welcomed a new website to the Freedom family!

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Claiming a Facebook Page Setup By A Former Employee

Posted by: Jeff Davis - 07/5/2017

This is the first of a series of posts on claiming social media accounts, starting with Facebook.

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Change Your Password NOW!

Posted by: Jeff Davis - 03/24/2017

Earlier this week our Support Staff came and pulled me out of a meeting. A client had an important Google Analytics question...

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Does Advertising Work? Yes, But Only Once

Posted by: Jeff Davis - 03/14/2017

Does advertising work?

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Best Practices For Facebook Posting

Posted by: Jeff Davis - 03/10/2017

One of the services offered at Thrive is "Social Media Management". We manage the Facebook accounts for a number of businesses. If you would like to hear more, feel free to give us a call at 419-776-7000.

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