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As an outside observer, I’d say Ken Fisher appreciates a “tenbagger.”

The term “tenbagger” was popularized by the legendary Fidelity fund manager Peter Lynch in his book One Up On Wall Street. It describes an investment that appreciates 10 times its initial purchase price.

Ken Fisher, of Forbes and TV Ad fame and head of Fisher Investments, started his business in 1979 with $250. Today he has more than 40,000 private clients and $96 billion in assets under management.

Let’s look to Ken for insight and inspiration.

What two numbers does Ken Fisher live by that the average advisor ignores?

When Ken was asked in a recent interview how much he spent on marketing, he responded, “a lot.”

The reason Ken Fisher and his team of marketers can afford to spend “a lot” is they know these two things:

  • not only the amount it costs to acquire each new client,
  • but also what a client is worth over their lifetime.

These are the key metrics of inputs and outputs of a practice.

Cost to acquire a client (CAC)

This metric is fairly straightforward.

It answers the question, “What is the total marketing and sales investment required to get the average new client into the marketing process and then to sign on the dotted line?”