This is one of those questions that plagues businesses everywhere. Unfortunately there is no cookie cutter answer because every business is different. There are a lot of variables that need to be considered when taking the approach.  The best place to start is by defining the value of a lifetime customer, then work backwards from that. We generally start with 20% of that value. This money needs to be allocated as part of the product sales price so that it's not an "extra" expense, yet something built into the pricing strategy of your product or service.

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