Glossary

LTV

Total revenue a customer generates over the course of the relationship, not just on the first purchase.

LTV, lifetime value, measures how much a buyer is worth by adding everything up: the initial purchase, the upsells, the recurring billing renewals, and the purchases that follow.

It's the number that decides how much you can afford to pay for a customer. An operation that only looks at the first sale has a low ceiling for traffic investment. One that knows its own LTV can afford to pay more for acquisition and still stay profitable.

Approval and chargeback feed directly into this math: a customer who can't pay the renewal, or who disputes a charge, cuts the LTV short.

Documentation exists so a seller never learns a rule on the day it costs them. Worth reading before you need it.
Wellington CostaGlobal Payments Specialist

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Written by Wellington Costa Global Payments Specialist

Writes about payment infrastructure, checkout conversion and chargeback reduction. Works directly with digital product sellers, affiliates and creators selling to more than 40 countries through Mundpay.