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Fan value and acceptable acquisition cost
A fan is worth what they spend during the time they stay active. This tool multiplies the average order by the purchase frequency and the lifetime, removes the platform commission, then derives the maximum acquisition cost compatible with the margin you are aiming for.
The formula
Three multiplications, one subtraction
Monthly spend of a fan = average order × purchases per month.
Fan value = monthly spend × lifetime in months.
Net value = fan value × (1 − platform commission).
Acceptable acquisition cost = net value × (1 − target margin).
The fan value is gross, before commission. The net value deducts the commission published by the platform, 20% for OnlyFans. The target margin is the share of the net value you want to keep after paying for acquisition; the rest is the maximum budget per paying fan. Average order, frequency, lifetime and target margin are working assumptions.
Worked example
15 dollar average order, 2 purchases per month, 3 months, 30% target margin
| Item | Calculation | Value |
|---|---|---|
| Monthly spend of a fan | $15 × 2 purchases | $30.00 |
| Fan value | $30 × 3 months | $90.00 |
| Net value after commission | $90 × (1 − 0.20) | $72.00 |
| Acceptable acquisition cost | $72 × (1 − 0.30) | $50.40 |
Results
Frequently asked questions
Three questions about this calculation
How do you measure the average order, the frequency and the lifetime?
On your own data. Average order: total sales divided by the number of purchases. Frequency: number of purchases per fan per month. Lifetime: number of months between the first and the last purchase of a fan, averaged over the fans who have stopped buying. The default values are working assumptions, not market data.
Why a net value after commission?
Because the platform keeps its commission before anything is paid out: OnlyFans publishes 20% of the fan payment. The net value is what is actually left to share between the creator and the agency, and it is the figure that decides how much can be spent to acquire a fan.
How do you read the acceptable acquisition cost?
It is the maximum to spend to bring in a paying fan while keeping the target margin on their net value. If your acquisition costs more than this figure per paying fan, the margin falls below the target. Acquisition cost is measured in module 4, with the funnel and its stages.
Sources
The other tools
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Each calculation is explained in the lesson The numbers of the trade, module 6. The tools are information, not advice: the default values are working assumptions, except those that carry a source.