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4 Ratios Every Service Business Needs To Track

01

LTV : CAC

How profitable your marketing and sales engine is: what a client is worth versus what it costs to land one.

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Aim for 3:1 at worst, 5:1+ ideal
02

Return on Employee

How efficient your delivery is: revenue divided by the cost of the team fulfilling it (not your whole company).

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Target 5:1, an 80% gross margin
03

Return on Token Spent

Whether your AI investment is paying off: revenue managed by AI divided by what you spend on it.

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Above 1:1 means it earns more than it costs
04

AI vs. People

The bonus ratio: ROTS ÷ ROE for one task. Compare what a specific workflow costs with people vs. with AI. Close to 1:1 and AI isn't earning its place.

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Near 1:1, fix the setup or keep people

How to read it. These are directional benchmarks, not accounting. Use consistent, fully-loaded costs (salary plus overhead) so the ratios are honest, then track them over time, not once. Nothing you type is saved or sent anywhere; it all runs in your browser.

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