What are the different analyses?
The model looks at the following different analyses, each of which is described with a chart in this blog post:
Impact of Churn
The Three Components of MRR Monthly Recurring Revenue
Cash flow for individual salespeople
Marketing costs to provide sales staff with enough potential customers
Customer acquisition cost
Customer Lifetime Value
The last section of this blog post discusses how the model was philippines mobile database built and how you can use it for your own calculations.
Part 1: New Salespeople
How to increase the income of a single salesperson
For those new to SaaS or other recurring revenue businesses, the chart below shows one of the nice things about recurring revenue. Bookings made in January continue to be billed in each subsequent month. The chart on the left shows this effect assuming no churn or customer loss. The chart on the right shows the impact of a 2.5% monthly churn rate, which slowly eats away at the amount billed each month.
"picture"
Bookings, Churn, and MRR for New Salespeople
The above graph assumes no ramp-up time. Let’s look at bookings, churn, and MRR for new hires.