|Hey, I want to make a quick post about the financial model we’re using to estimate the marketing efficiency for ReferHub|
I had a call with a mentor, about the early days of this software, and he said we needed a model as far as financial model what it looks like to acquire a customer and service that customer. Also what marketing could potentially do to scale that.
I asked him if there was any templates out there on the internet that we could just reuse and he said, usually they weren’t that helpful. And I didn’t believe them. I went out and googled around looking for software models, or marketing models or financial models.
And honestly, the ones I found were either way too complicated for me, or they just didn’t have what I needed.
Like they didn’t have customer acquisition cost or conversion rates or retention; basic things that I would think that a software financial model would have on them.
So I built one! And in the spirit of sharing. I’m giving it away for you to use for your startup.
Now this model works for software but I think you can adapt it for pretty much any business. You know landscaping, or marketing agency or, house painting.
Because as with any business, you need to know how much it costs to acquire a customer how much you’re making from a customer, how much it costs to service that customer and how long they stick around.
So play around. Hope this is a value add and feel free to make a copy for yourself.