Sojourn Ad Math
1
Customer Lifetime Value
What one customer is worth over the whole relationship, in gross revenue. Bonus % covers repeat seasons, referrals, or add-ons stated as a percentage (60% come back = 60).
LTV
—
LTV = avg purchase × purchases × (1 + bonus%)
2
Target Acquisition Cost
What they're willing to pay to "buy" one customer. 10% of LTV = every ad dollar returns ten in revenue.
Target CAC
—
Target CAC = LTV × rule%
3
Leads Per Customer
Their funnel. Flip the close rate first: closing A of B means B÷A conversations per customer, then multiply.
1 in leads becomes a conversation
They close of conversations
Leads needed per customer
—
Flip: A of B → B÷A conversations per customer
LPC = leads per conversation × (B÷A)
4
Market Reality
What Meta actually charges per lead in their niche and area, against what the math allows.
Real CAC (what a customer actually costs)—
Real CAC = LPC × cost per lead
Real CAC as % of LTV—
Max CPL before the rule breaks—
Max CPL = Target CAC ÷ LPC
Headroom above today's lead cost—
5
Budget & Payback
Work backwards from their goal. Month one runs at about half efficiency while the algorithm learns.
Include Sojourn fee
Monthly ad budget—
Budget = customers wanted × Real CAC
All-in monthly (ads + fee)—
Lifetime value of one month's cohort—
Return on ad spend—
ROAS = LTV ÷ Real CAC (revenue back per ad dollar)