saas sales force economics : excel model

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SaaS Economics - Ramping a SaaS salesforce Part 1: Model the ecomomics of a single sales perso Sales compensation and overhead Base Compensation $ 50,000 Variable Compensation $ 55,000 with 50% draw for first Draw on Variable Comp 100% 70% 30% Productivity Ramp 10% 33% 66% Additional overhead $ 30,000 Sales attrition factor 15% a factor to discount bo On target annual bookings Annual Bookings 500,000 ACV (Annual Contract Va Monthly Bookings $ 41,667 ACV (Annual Contract Va Monthly Bookings $ 3,472 Billed monthly (=ACV / Churn Rate and Margin Churn Rate (monthly) 2.50% Gross Margin 80.00% Cost of Leads required to feed sales Average Deal Size $6,000 (ACV) Annual Contract V Deals to meet target 6.9 per month Leads to closed deal 10 Cost per Qualified Lead $125 Cost of Leads required $ 8,698 per month, for 1 fully Other interesting Calculations Lead Gen costs per deal $ 1,253 Excludes people costs Selling costs per deal $ 1,620 Excludes cost of sales Total CAC $ 2,873 Excludes people costs i Total LTV $ 16,000 Calculated by dividing Income Month 1 Month 2 Month 3 Productivity Ramp 10% 33% 66% Bookings (ACV) $ 3,542 $ 11,688 $ 23,375 New MRR added this month $ 295 $ 974 $ 1,948 MRR from prior months bookings $ 295 $ 1,262 Churn $ (7.38) $ (31.54) Total MRR (Billings) $ 295 $ 1,262 $ 3,178 Cumulative Billings $ 295 $ 1,557 $ 4,735

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Page 1: SaaS Sales Force Economics : Excel Model

SaaS Economics - Ramping a SaaS salesforce

Part 1: Model the ecomomics of a single sales personSales compensation and overheadBase Compensation $ 50,000 Variable Compensation $ 55,000 with 50% draw for first four monthsDraw on Variable Comp 100% 70% 30% 0%Productivity Ramp 10% 33% 66% 100%Additional overhead $ 30,000 Sales attrition factor 15% a factor to discount bookings to account for failed sales hires and attrition

On target annual bookings Annual Bookings 500,000 ACV (Annual Contract Value) Monthly Bookings $ 41,667 ACV (Annual Contract Value) Monthly Bookings $ 3,472 Billed monthly (=ACV / 12)

Churn Rate and MarginChurn Rate (monthly) 2.50%Gross Margin 80.00%

Cost of Leads required to feed salesAverage Deal Size $6,000 (ACV) Annual Contract ValueDeals to meet target 6.9 per monthLeads to closed deal 10 Cost per Qualified Lead $125 Cost of Leads required $ 8,698 per month, for 1 fully productive sales person

Other interesting CalculationsLead Gen costs per deal $ 1,253 Excludes people costsSelling costs per deal $ 1,620 Excludes cost of sales managementTotal CAC $ 2,873 Excludes people costs in marketing, and sales management. (CAC= Cost to Acquire a Customer)Total LTV $ 16,000 Calculated by dividing average monthly gross profit per customer (ARPU x Gross Margin ) by the churn rate

Income Month 1 Month 2 Month 3 Month 4Productivity Ramp 10% 33% 66% 100%Bookings (ACV) $ 3,542 $ 11,688 $ 23,375 $ 35,417 New MRR added this month $ 295 $ 974 $ 1,948 $ 2,951 MRR from prior months bookings $ 295 $ 1,262 $ 3,178 Churn $ (7.38) $ (31.54) $ (79.45)Total MRR (Billings) $ 295 $ 1,262 $ 3,178 $ 6,050 Cumulative Billings $ 295 $ 1,557 $ 4,735 $ 10,785 Cumulative Gross Profit $ 236 $ 1,245 $ 3,788 $ 8,628

Page 2: SaaS Sales Force Economics : Excel Model

ExpensesBase Salary $ 4,167 $ 4,167 $ 4,167 $ 4,167 Variable Compensation $ 4,583 $ 3,208 $ 3,025 $ 4,583 Overhead $ 2,500 $ 2,500 $ 2,500 $ 2,500 Cost of leads required $ 850 $ 2,806 $ 5,611 $ 8,502 Total Expenses $ 12,100 $ 12,681 $ 15,303 $ 19,752 Cumulative expenses $ 12,100 $ 24,781 $ 40,084 $ 59,836

Breakeven Analysis Month 1 Month 2 Month 3 Month 4Net profit $ (11,864) $ (11,671) $ (12,761) $ (14,912)Cumulative Net Profit $ (11,864) $ (23,535) $ (36,296) $ (51,208)

Part 2: Look at the Overall Economics when Ramping Sales Hires

Month 1 Month 2 Month 3 Month 4New Sales Hires 2 2 2 2Total Sales Headcount 2 4 6 8Total Leads Required 14 58 148 284

Income Month 1 Month 2 Month 3 Month 4Bookings (ACV) $ 7,083 $ 30,458 $ 77,208 $ 148,042 Total MRR (Billings) $ 590 $ 3,114 $ 9,470 $ 21,570 Cumulative Billings $ 590 $ 3,704 $ 13,174 $ 34,744 Cumulative Gross Profit $ 472 $ 2,963 $ 10,539 $ 27,795 Growth in MRR $ 590 $ 2,523 $ 6,356 $ 12,100

ExpensesBase Salary $ 8,333 $ 16,667 $ 25,000 $ 33,333 Variable Compensation $ 9,167 $ 15,583 $ 21,633 $ 30,800 Overhead $ 5,000 $ 10,000 $ 15,000 $ 20,000

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12 $(5,000)

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

MRR - Single Sales Hire

ChurnMRR from prior months bookingsNew MRR added this month

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$(1,000)

$(500)

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

Bookings & Churn - Single Sales Hire

ChurnNew MRR added this month

Page 3: SaaS Sales Force Economics : Excel Model

Cost of leads required $ 1,700 $ 7,312 $ 18,535 $ 35,539 Total Expenses $ 24,200 $ 49,562 $ 80,168 $ 119,673 Cumulative expenses $ 24,200 $ 73,762 $ 153,931 $ 273,603

Breakeven Analysis Month 1 Month 2 Month 3 Month 4Net profit $ (23,728) $ (47,071) $ (72,592) $ (102,417)Cumulative Net Profit $ (23,728) $ (70,799) $ (143,391) $ (245,808)

Part 3: Look at the impact of collecting 1 year's payment in advance

Step 1: Individual Sales personIncome Month 1 Month 2 Month 3 Month 4Productivity Ramp 10% 33% 66% 100%Bookings (ACV) $ 3,542 $ 11,688 $ 23,375 $ 35,417

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

$(250,000)

$(200,000)

$(150,000)

$(100,000)

$(50,000)

$-

$50,000

$100,000

$150,000

Net profit

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

$(3,000,000)

$(2,500,000)

$(2,000,000)

$(1,500,000)

$(1,000,000)

$(500,000)

$-

Cumulative Net Profit

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23 $-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

Total MRR (Billings)

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23 $-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

Growth in MRR

Page 4: SaaS Sales Force Economics : Excel Model

Renewable contract valueChurnRenewals (renewable - churn)Billings (bookings + renewals) $ 3,542 $ 11,688 $ 23,375 $ 35,417 Cumulative Billings $ 3,542 $ 15,229 $ 38,604 $ 74,021 Cumulative Gross Profit $ 2,833 $ 12,183 $ 30,883 $ 59,217

Breakeven Analysis Month 1 Month 2 Month 3 Month 4Net Cash Flows $ (9,267) $ (3,331) $ 3,397 $ 8,581 Cumulative Net Cash Flows $ (9,267) $ (12,598) $ (9,201) $ (620)

Step 2: Look at the Overall Economics when Ramping Sales HiresIncome Month 1 Month 2 Month 3 Month 4Bookings (ACV) $ 7,083 $ 30,458 $ 77,208 $ 148,042 Billings less churn (MRR) $ 7,083 $ 30,458 $ 77,208 $ 148,042 Cumulative Billings $ 7,083 $ 37,542 $ 114,750 $ 262,792 Cumulative Gross Profit $ 5,667 $ 30,033 $ 91,800 $ 210,233 Growth in MRR $ 7,083 $ 23,375 $ 46,750 $ 70,833

Breakeven Analysis Month 1 Month 2 Month 3 Month 4Net Cash Flows $ (6,434) $ 11,686 $ 46,464 $ 98,681 Cumulative Net Cash Flows $ (18,534) $ (19,529) $ 11,632 $ 90,561

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Month 13

Month 14

Month 15

Month 16

Month 17

Month 18

Month 19

Month 20

Month 21

Month 22

Month 23

Month 24

$(15,000)

$(10,000)

$(5,000)

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

Net Cash Flows

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23 $(50,000) $-

$50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000

Cumulative Net Cash Flows

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

Month 25

Month 27

Month 29

Month 31

Month 33

Month 35 $(500,000)

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

Net Cash Flows

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

Month 25

Month 27

Month 29

Month 31

Month 33

Month 35 $(5,000,000)

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

Cumulative Net Cash Flows

Page 5: SaaS Sales Force Economics : Excel Model

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

Month 25

Month 27

Month 29

Month 31

Month 33

Month 35 $(500,000)

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

Net Cash Flows

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

Month 25

Month 27

Month 29

Month 31

Month 33

Month 35 $(5,000,000)

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

Cumulative Net Cash Flows

Page 6: SaaS Sales Force Economics : Excel Model

Cells formated like this: are input variables

0% 0% 0% 0% 0%100% 100% 100% 100% 100%

a factor to discount bookings to account for failed sales hires and attrition

Quick Marketing Calculation50% amount of traffic that is organic versus paid

$1.50 cost per paid visitor (Google AdWords, etc.) $ 0.75 Cost per visitor (both paid and unpaid)

3% visitors convert to raw leads20% number of raw leads that turn into qualified leads

1 qualified lead5 raw leads required

167 visitors requiredper month, for 1 fully productive sales person $125 Cost of visitors (also = Cost per qualified lead)

Excludes people costs in marketing, and sales management. (CAC= Cost to Acquire a Customer)Calculated by dividing average monthly gross profit per customer (ARPU x Gross Margin ) by the churn rate

Month 5 Month 6 Month 7 Month 8 Month 9 Month 10100% 100% 100% 100% 100% 100%

$ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 6,050 $ 8,850 $ 11,580 $ 14,242 $ 16,838 $ 19,368 $ (151.25) $ (221.25) $ (289.51) $ (356.05) $ (420.94) $ (484.20) $ 8,850 $ 11,580 $ 14,242 $ 16,838 $ 19,368 $ 21,835 $ 19,635 $ 31,215 $ 45,458 $ 62,295 $ 81,663 $ 103,498 $ 15,708 $ 24,972 $ 36,366 $ 49,836 $ 65,330 $ 82,799

Page 7: SaaS Sales Force Economics : Excel Model

$ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 79,589 $ 99,341 $ 119,093 $ 138,845 $ 158,597 $ 178,350

Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 $ (12,672) $ (10,488) $ (8,358) $ (6,282) $ (4,258) $ (2,284) $ (63,880) $ (74,368) $ (82,727) $ (89,009) $ (93,267) $ (95,551)

Month 5 Month 6 Month 7 Month 8 Month 9 Month 102 2 2 2 2 2

10 12 14 16 18 20 420 555 691 827 963 1,098

Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 $ 218,875 $ 289,708 $ 360,542 $ 431,375 $ 502,208 $ 573,042 $ 39,270 $ 62,431 $ 90,915 $ 124,590 $ 163,326 $ 206,997 $ 74,014 $ 136,445 $ 227,360 $ 351,951 $ 515,277 $ 722,273 $ 59,211 $ 109,156 $ 181,888 $ 281,560 $ 412,221 $ 577,819 $ 17,700 $ 23,161 $ 28,484 $ 33,675 $ 38,736 $ 43,670

$ 41,667 $ 50,000 $ 58,333 $ 66,667 $ 75,000 $ 83,333 $ 39,967 $ 49,133 $ 58,300 $ 67,467 $ 76,633 $ 85,800 $ 25,000 $ 30,000 $ 35,000 $ 40,000 $ 45,000 $ 50,000

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12 $(5,000)

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

MRR - Single Sales Hire

ChurnMRR from prior months bookingsNew MRR added this month

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11 $-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

MRR Versus Expenses

Total MRR (Billings)Total Expenses

Axis Title

Page 8: SaaS Sales Force Economics : Excel Model

$ 52,544 $ 69,548 $ 86,553 $ 103,557 $ 120,561 $ 137,566 $ 159,177 $ 198,681 $ 238,186 $ 277,690 $ 317,195 $ 356,699 $ 432,780 $ 631,462 $ 869,647 $ 1,147,338 $ 1,464,532 $ 1,821,232

Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 $ (127,761) $ (148,737) $ (165,454) $ (178,018) $ (186,534) $ (191,102) $ (373,569) $ (522,306) $ (687,759) $ (865,777) $ (1,052,311) $ (1,243,413)

Month 5 Month 6 Month 7 Month 8 Month 9 Month 10100% 100% 100% 100% 100% 100%

$ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

$(3,000,000)

$(2,500,000)

$(2,000,000)

$(1,500,000)

$(1,000,000)

$(500,000)

$-

Cumulative Net Profit

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23 $-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

Growth in MRR

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

Month 25

Month 27

Month 29

Month 31

Month 33

Month 35

$(3,000,000)

$(2,000,000)

$(1,000,000)

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

Cumulative Net Profit

Page 9: SaaS Sales Force Economics : Excel Model

$ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 109,438 $ 144,854 $ 180,271 $ 215,687 $ 251,104 $ 286,521 $ 87,550 $ 115,883 $ 144,217 $ 172,550 $ 200,883 $ 229,217

Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 $ 8,581 $ 8,581 $ 8,581 $ 8,581 $ 8,581 $ 8,581 $ 7,961 $ 16,543 $ 25,124 $ 33,705 $ 42,286 $ 50,867

Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 $ 218,875 $ 289,708 $ 360,542 $ 431,375 $ 502,208 $ 573,042 $ 218,875 $ 289,708 $ 360,542 $ 431,375 $ 502,208 $ 573,042 $ 481,667 $ 771,375 $ 1,131,917 $ 1,563,292 $ 2,065,500 $ 2,638,542 $ 385,333 $ 617,100 $ 905,533 $ 1,250,633 $ 1,652,400 $ 2,110,833 $ 70,833 $ 70,833 $ 70,833 $ 70,833 $ 70,833 $ 70,833

Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 $ 155,348 $ 212,014 $ 268,681 $ 325,348 $ 382,014 $ 438,681 $ 226,156 $ 418,419 $ 667,347 $ 972,943 $ 1,335,205 $ 1,754,134

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23 $(50,000) $-

$50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000

Cumulative Net Cash Flows

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

Month 25

Month 27

Month 29

Month 31

Month 33

Month 35 $(5,000,000)

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

Cumulative Net Cash Flows

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

$(20,000)

$(10,000)

$-

$10,000

$20,000

$30,000

$40,000

Cashflow comparison - monthly payments vs year in advance

Net profitNet Cash Flows

Axis Title

Month 1

Month 5

Month 9

Month 13

Month 17

Month 21

Month 25

Month 29

Month 33 $(500,000)

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

Cashflow comparison - monthly payments vs year in advance

Net profitNet Cash Flows

Axis Title

Page 10: SaaS Sales Force Economics : Excel Model

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

Month 25

Month 27

Month 29

Month 31

Month 33

Month 35 $(5,000,000)

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

Cumulative Net Cash Flows

Month 1

Month 5

Month 9

Month 13

Month 17

Month 21

Month 25

Month 29

Month 33 $(500,000)

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

Cashflow comparison - monthly payments vs year in advance

Net profitNet Cash Flows

Axis Title

Page 11: SaaS Sales Force Economics : Excel Model

number of raw leads that turn into qualified leads

Month 11 Month 12 Month 13 Month 14 Month 15 Month 16100% 100% 100% 100% 100% 100%

$ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 21,835 $ 24,241 $ 26,586 $ 28,873 $ 31,102 $ 33,276 $ (545.88) $ (606.02) $ (664.65) $ (721.82) $ (777.56) $ (831.90) $ 24,241 $ 26,586 $ 28,873 $ 31,102 $ 33,276 $ 35,396 $ 127,739 $ 154,325 $ 183,198 $ 214,300 $ 247,576 $ 282,972 $ 102,191 $ 123,460 $ 146,558 $ 171,440 $ 198,061 $ 226,378

Page 12: SaaS Sales Force Economics : Excel Model

$ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 198,102 $ 217,854 $ 237,606 $ 257,358 $ 277,111 $ 296,863

Month 11 Month 12 Month 13 Month 14 Month 15 Month 16 $ (360) $ 1,517 $ 3,346 $ 5,130 $ 6,869 $ 8,564 $ (95,911) $ (94,394) $ (91,048) $ (85,918) $ (79,050) $ (70,485)

Month 11 Month 12 Month 13 Month 14 Month 15 Month 162 2 2 2 2 2

22 24 26 28 30 32 1,234 1,370 1,506 1,641 1,777 1,913

Month 11 Month 12 Month 13 Month 14 Month 15 Month 16 $ 643,875 $ 714,708 $ 785,542 $ 856,375 $ 927,208 $ 998,042 $ 255,478 $ 308,650 $ 366,396 $ 428,600 $ 495,153 $ 565,944 $ 977,751 $ 1,286,401 $ 1,652,797 $ 2,081,397 $ 2,576,550 $ 3,142,493 $ 782,201 $ 1,029,121 $ 1,322,237 $ 1,665,118 $ 2,061,240 $ 2,513,995 $ 48,481 $ 53,172 $ 57,746 $ 62,205 $ 66,552 $ 70,791

$ 91,667 $ 100,000 $ 108,333 $ 116,667 $ 125,000 $ 133,333 $ 94,967 $ 104,133 $ 113,300 $ 122,467 $ 131,633 $ 140,800 $ 55,000 $ 60,000 $ 65,000 $ 70,000 $ 75,000 $ 80,000

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

$(20,000)

$(15,000)

$(10,000)

$(5,000)

$-

$5,000

$10,000

$15,000

$20,000

$25,000

Net profit - New Sales Hire

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11 $-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

MRR Versus Expenses

Total MRR (Billings)Total Expenses

Axis Title

Page 13: SaaS Sales Force Economics : Excel Model

$ 154,570 $ 171,575 $ 188,579 $ 205,584 $ 222,588 $ 239,592 $ 396,204 $ 435,708 $ 475,212 $ 514,717 $ 554,221 $ 593,726 $ 2,217,435 $ 2,653,143 $ 3,128,356 $ 3,643,072 $ 4,197,294 $ 4,791,019

Month 11 Month 12 Month 13 Month 14 Month 15 Month 16 $ (191,821) $ (188,788) $ (182,096) $ (171,837) $ (158,099) $ (140,971) $ (1,435,234) $ (1,624,022) $ (1,806,118) $ (1,977,955) $ (2,136,054) $ (2,277,025)

Month 11 Month 12 Month 13 Month 14 Month 15 Month 16100% 100% 100% 100% 100% 100%

$ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

Month 25

Month 27

Month 29

Month 31

Month 33

Month 35

$(3,000,000)

$(2,000,000)

$(1,000,000)

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

Cumulative Net Profit

Page 14: SaaS Sales Force Economics : Excel Model

$ 3,542 $ 11,688 $ 23,375 $ 35,417 $ 35,417 $ (1,062.50) $ (3,506.25) $ (7,012.50) $ (10,625.00) $ (10,625.00) $ 2,479 $ 8,181 $ 16,363 $ 24,792 $ 24,792

$ 35,417 $ 37,896 $ 43,598 $ 51,779 $ 60,208 $ 60,208 $ 321,938 $ 359,833 $ 403,431 $ 455,210 $ 515,419 $ 575,627 $ 257,550 $ 287,867 $ 322,745 $ 364,168 $ 412,335 $ 460,502

Month 11 Month 12 Month 13 Month 14 Month 15 Month 16 $ 8,581 $ 10,564 $ 15,126 $ 21,671 $ 28,414 $ 28,414 $ 59,448 $ 70,013 $ 85,139 $ 106,810 $ 135,224 $ 163,639

Month 11 Month 12 Month 13 Month 14 Month 15 Month 16 $ 643,875 $ 714,708 $ 785,542 $ 856,375 $ 927,208 $ 998,042 $ 643,875 $ 714,708 $ 787,667 $ 865,512 $ 950,371 $ 1,042,454 $ 3,282,417 $ 3,997,125 $ 4,784,792 $ 5,650,304 $ 6,600,675 $ 7,643,129 $ 2,625,933 $ 3,197,700 $ 3,827,833 $ 4,520,243 $ 5,280,540 $ 6,114,503 $ 70,833 $ 70,833 $ 72,958 $ 77,846 $ 84,858 $ 92,083

Month 11 Month 12 Month 13 Month 14 Month 15 Month 16 $ 495,348 $ 552,014 $ 610,381 $ 672,658 $ 740,544 $ 814,211 $ 2,229,730 $ 2,761,992 $ 3,352,621 $ 4,005,526 $ 4,726,319 $ 5,520,778

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

$(20,000)

$(10,000)

$-

$10,000

$20,000

$30,000

$40,000

Cashflow comparison - monthly payments vs year in advance

Net profitNet Cash Flows

Axis Title

Month 1

Month 6

Month 11

Month 16

Month 21

Month 26

Month 31

Month 36 $(5,000,000) $-

$5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000

Cumulative Cashflow comparision - monthly payments vs year in advance

Cumulative Net ProfitCumulative Net Cash Flows

Axis Title

Month 1

Month 4

Month 7

Month 10

Month 13

Month 16

Month 19

Month 22

$(200,000)

$(100,000)

$-

$100,000

$200,000

$300,000

$400,000

$500,000

Cumulative Cashflow comparision - monthly payments vs year in advance

Cumulative Net ProfitCumulative Net Cash Flows

Axis Title

Month 1

Month 5

Month 9

Month 13

Month 17

Month 21

Month 25

Month 29

Month 33 $(500,000)

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

Cashflow comparison - monthly payments vs year in advance

Net profitNet Cash Flows

Axis Title

Page 15: SaaS Sales Force Economics : Excel Model

Month 1

Month 6

Month 11

Month 16

Month 21

Month 26

Month 31

Month 36 $(5,000,000) $-

$5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000

Cumulative Cashflow comparision - monthly payments vs year in advance

Cumulative Net ProfitCumulative Net Cash Flows

Axis Title

Month 1

Month 5

Month 9

Month 13

Month 17

Month 21

Month 25

Month 29

Month 33 $(500,000)

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

Cashflow comparison - monthly payments vs year in advance

Net profitNet Cash Flows

Axis Title

Page 16: SaaS Sales Force Economics : Excel Model

Month 17 Month 18 Month 19 Month 20 Month 21 Month 22100% 100% 100% 100% 100% 100%

$ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 35,396 $ 37,462 $ 39,477 $ 41,441 $ 43,357 $ 45,224 $ (884.89) $ (936.55) $ (986.92) $ (1,036.04) $ (1,083.92) $ (1,130.61) $ 37,462 $ 39,477 $ 41,441 $ 43,357 $ 45,224 $ 47,045 $ 320,434 $ 359,911 $ 401,353 $ 444,709 $ 489,934 $ 536,979 $ 256,347 $ 287,929 $ 321,082 $ 355,767 $ 391,947 $ 429,583

Page 17: SaaS Sales Force Economics : Excel Model

$ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 316,615 $ 336,367 $ 356,119 $ 375,872 $ 395,624 $ 415,376

Month 17 Month 18 Month 19 Month 20 Month 21 Month 22 $ 10,218 $ 11,829 $ 13,401 $ 14,933 $ 16,427 $ 17,884 $ (60,268) $ (48,438) $ (35,037) $ (20,104) $ (3,677) $ 14,207

Month 17 Month 18 Month 19 Month 20 Month 21 Month 222 2 2 2 2 2

34 36 38 40 42 44 2,049 2,184 2,320 2,456 2,592 2,727

Month 17 Month 18 Month 19 Month 20 Month 21 Month 22 $ 1,068,875 $ 1,139,708 $ 1,210,542 $ 1,281,375 $ 1,352,208 $ 1,423,042 $ 640,868 $ 719,822 $ 802,705 $ 889,419 $ 979,867 $ 1,073,957 $ 3,783,362 $ 4,503,184 $ 5,305,889 $ 6,195,308 $ 7,175,175 $ 8,249,132 $ 3,026,689 $ 3,602,547 $ 4,244,711 $ 4,956,246 $ 5,740,140 $ 6,599,306 $ 74,924 $ 78,954 $ 82,883 $ 86,714 $ 90,449 $ 94,090

$ 141,667 $ 150,000 $ 158,333 $ 166,667 $ 175,000 $ 183,333 $ 149,967 $ 159,133 $ 168,300 $ 177,467 $ 186,633 $ 195,800 $ 85,000 $ 90,000 $ 95,000 $ 100,000 $ 105,000 $ 110,000

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

$(20,000)

$(15,000)

$(10,000)

$(5,000)

$-

$5,000

$10,000

$15,000

$20,000

$25,000

Net profit - New Sales Hire

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

Month 25

Month 27

Month 29

Month 31

Month 33

Month 35

$(200,000)

$(100,000)

$-

$100,000

$200,000

$300,000

$400,000

$500,000

Cumulative Net Profit - New Sales Hire

Page 18: SaaS Sales Force Economics : Excel Model

$ 256,597 $ 273,601 $ 290,606 $ 307,610 $ 324,615 $ 341,619 $ 633,230 $ 672,735 $ 712,239 $ 751,743 $ 791,248 $ 830,752 $ 5,424,250 $ 6,096,984 $ 6,809,223 $ 7,560,967 $ 8,352,214 $ 9,182,967

Month 17 Month 18 Month 19 Month 20 Month 21 Month 22 $ (120,536) $ (96,877) $ (70,075) $ (40,208) $ (7,354) $ 28,414 $ (2,397,560) $ (2,494,437) $ (2,564,512) $ (2,604,720) $ (2,612,074) $ (2,583,661)

Month 17 Month 18 Month 19 Month 20 Month 21 Month 22100% 100% 100% 100% 100% 100%

$ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417

Page 19: SaaS Sales Force Economics : Excel Model

$ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ (10,625.00) $ (10,625.00) $ (10,625.00) $ (10,625.00) $ (10,625.00) $ (10,625.00) $ 24,792 $ 24,792 $ 24,792 $ 24,792 $ 24,792 $ 24,792 $ 60,208 $ 60,208 $ 60,208 $ 60,208 $ 60,208 $ 60,208 $ 635,835 $ 696,044 $ 756,252 $ 816,460 $ 876,669 $ 936,877 $ 508,668 $ 556,835 $ 605,002 $ 653,168 $ 701,335 $ 749,502

Month 17 Month 18 Month 19 Month 20 Month 21 Month 22 $ 28,414 $ 28,414 $ 28,414 $ 28,414 $ 28,414 $ 28,414 $ 192,053 $ 220,468 $ 248,882 $ 277,297 $ 305,711 $ 334,126

Month 17 Month 18 Month 19 Month 20 Month 21 Month 22 $ 1,068,875 $ 1,139,708 $ 1,210,542 $ 1,281,375 $ 1,352,208 $ 1,423,042 $ 1,134,538 $ 1,226,621 $ 1,318,704 $ 1,410,788 $ 1,502,871 $ 1,594,954 $ 8,777,667 $ 10,004,288 $ 11,322,992 $ 12,733,779 $ 14,236,650 $ 15,831,604 $ 7,022,133 $ 8,003,430 $ 9,058,393 $ 10,187,023 $ 11,389,320 $ 12,665,283 $ 92,083 $ 92,083 $ 92,083 $ 92,083 $ 92,083 $ 92,083

Month 17 Month 18 Month 19 Month 20 Month 21 Month 22 $ 887,878 $ 961,544 $ 1,035,211 $ 1,108,878 $ 1,182,544 $ 1,256,211 $ 6,388,903 $ 7,330,695 $ 8,346,154 $ 9,435,280 $ 10,598,072 $ 11,834,531

Month 1

Month 6

Month 11

Month 16

Month 21

Month 26

Month 31

Month 36 $(5,000,000) $-

$5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000

Cumulative Cashflow comparision - monthly payments vs year in advance

Cumulative Net ProfitCumulative Net Cash Flows

Axis Title

Month 1

Month 4

Month 7

Month 10

Month 13

Month 16

Month 19

Month 22

$(200,000)

$(100,000)

$-

$100,000

$200,000

$300,000

$400,000

$500,000

Cumulative Cashflow comparision - monthly payments vs year in advance

Cumulative Net ProfitCumulative Net Cash Flows

Axis Title

Page 20: SaaS Sales Force Economics : Excel Model

Month 1

Month 6

Month 11

Month 16

Month 21

Month 26

Month 31

Month 36 $(5,000,000) $-

$5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000

Cumulative Cashflow comparision - monthly payments vs year in advance

Cumulative Net ProfitCumulative Net Cash Flows

Axis Title

Page 21: SaaS Sales Force Economics : Excel Model

Month 23 Month 24 Month 25 Month 26 Month 27 Month 28100% 100% 100% 100% 100% 100%

$ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 47,045 $ 48,820 $ 50,551 $ 52,239 $ 53,884 $ 55,489 $ (1,176.13) $ (1,220.51) $ (1,263.78) $ (1,305.97) $ (1,347.11) $ (1,387.21) $ 48,820 $ 50,551 $ 52,239 $ 53,884 $ 55,489 $ 57,053 $ 585,799 $ 636,350 $ 688,589 $ 742,473 $ 797,962 $ 855,014 $ 468,639 $ 509,080 $ 550,871 $ 593,979 $ 638,369 $ 684,012

Page 22: SaaS Sales Force Economics : Excel Model

$ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 435,128 $ 454,881 $ 474,633 $ 494,385 $ 514,137 $ 533,889

Month 23 Month 24 Month 25 Month 26 Month 27 Month 28 $ 19,304 $ 20,689 $ 22,039 $ 23,355 $ 24,639 $ 25,890 $ 33,511 $ 54,200 $ 76,238 $ 99,594 $ 124,232 $ 150,122

Month 23 Month 24 Month 25 Month 26 Month 27 Month 282 2 2 2 2 2

46 48 50 52 54 56 2,863 2,999 3,135 3,271 3,406 3,542

Month 23 Month 24 Month 25 Month 26 Month 27 Month 28 $ 1,493,875 $ 1,564,708 $ 1,635,542 $ 1,706,375 $ 1,777,208 $ 1,848,042 $ 1,171,598 $ 1,272,700 $ 1,377,178 $ 1,484,947 $ 1,595,924 $ 1,710,029 $ 9,420,731 $ 10,693,431 $ 12,070,609 $ 13,555,556 $ 15,151,479 $ 16,861,508 $ 7,536,584 $ 8,554,745 $ 9,656,487 $ 10,844,445 $ 12,121,183 $ 13,489,207 $ 97,641 $ 101,102 $ 104,478 $ 107,768 $ 110,977 $ 114,105

$ 191,667 $ 200,000 $ 208,333 $ 216,667 $ 225,000 $ 233,333 $ 204,967 $ 214,133 $ 223,300 $ 232,467 $ 241,633 $ 250,800 $ 115,000 $ 120,000 $ 125,000 $ 130,000 $ 135,000 $ 140,000

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

Month 25

Month 27

Month 29

Month 31

Month 33

Month 35

$(200,000)

$(100,000)

$-

$100,000

$200,000

$300,000

$400,000

$500,000

Cumulative Net Profit - New Sales Hire

Page 23: SaaS Sales Force Economics : Excel Model

$ 358,623 $ 375,628 $ 392,632 $ 409,637 $ 426,641 $ 443,646 $ 870,257 $ 909,761 $ 949,266 $ 988,770 $ 1,028,274 $ 1,067,779 $ 10,053,223 $ 10,962,984 $ 11,912,250 $ 12,901,020 $ 13,929,294 $ 14,997,073

Month 23 Month 24 Month 25 Month 26 Month 27 Month 28 $ 67,022 $ 108,399 $ 152,477 $ 199,187 $ 248,464 $ 300,244 $ (2,516,639) $ (2,408,240) $ (2,255,763) $ (2,056,575) $ (1,808,111) $ (1,507,867)

Month 23 Month 24 Month 25 Month 26 Month 27 Month 28100% 100% 100% 100% 100% 100%

$ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417

Page 24: SaaS Sales Force Economics : Excel Model

$ 35,417 $ 35,417 $ 37,896 $ 43,598 $ 51,779 $ 60,208 $ (10,625.00) $ (10,625.00) $ (11,368.75) $ (13,079.38) $ (15,533.75) $ (18,062.50) $ 24,792 $ 24,792 $ 26,527 $ 30,519 $ 36,245 $ 42,146 $ 60,208 $ 60,208 $ 61,944 $ 65,935 $ 71,662 $ 77,563 $ 997,085 $ 1,057,294 $ 1,119,238 $ 1,185,173 $ 1,256,835 $ 1,334,397 $ 797,668 $ 845,835 $ 895,390 $ 948,138 $ 1,005,468 $ 1,067,518

Month 23 Month 24 Month 25 Month 26 Month 27 Month 28 $ 28,414 $ 28,414 $ 29,803 $ 32,996 $ 37,577 $ 42,298 $ 362,540 $ 390,954 $ 420,757 $ 453,753 $ 491,331 $ 533,628

Month 23 Month 24 Month 25 Month 26 Month 27 Month 28 $ 1,493,875 $ 1,564,708 $ 1,635,542 $ 1,706,375 $ 1,777,208 $ 1,848,042 $ 1,687,038 $ 1,779,121 $ 1,871,842 $ 1,966,029 $ 2,062,320 $ 2,160,778 $ 17,518,642 $ 19,297,762 $ 21,169,604 $ 23,135,633 $ 25,197,952 $ 27,358,730 $ 14,014,913 $ 15,438,210 $ 16,935,683 $ 18,508,506 $ 20,158,362 $ 21,886,984 $ 92,083 $ 92,083 $ 92,721 $ 94,187 $ 96,291 $ 98,458

Month 23 Month 24 Month 25 Month 26 Month 27 Month 28 $ 1,329,878 $ 1,403,544 $ 1,477,721 $ 1,553,071 $ 1,630,103 $ 1,708,870 $ 13,144,657 $ 14,528,449 $ 15,986,418 $ 17,519,736 $ 19,130,088 $ 20,819,205

Page 25: SaaS Sales Force Economics : Excel Model

Month 29 Month 30 Month 31 Month 32 Month 33 Month 34100% 100% 100% 100% 100% 100%

$ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 57,053 $ 58,578 $ 60,065 $ 61,514 $ 62,928 $ 64,306 $ (1,426.32) $ (1,464.44) $ (1,501.62) $ (1,537.86) $ (1,573.20) $ (1,607.65) $ 58,578 $ 60,065 $ 61,514 $ 62,928 $ 64,306 $ 65,650 $ 913,592 $ 973,657 $ 1,035,171 $ 1,098,099 $ 1,162,406 $ 1,228,056 $ 730,874 $ 778,926 $ 828,137 $ 878,480 $ 929,925 $ 982,444

Page 26: SaaS Sales Force Economics : Excel Model

$ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 553,642 $ 573,394 $ 593,146 $ 612,898 $ 632,650 $ 652,403

Month 29 Month 30 Month 31 Month 32 Month 33 Month 34 $ 27,110 $ 28,300 $ 29,459 $ 30,590 $ 31,693 $ 32,768 $ 177,232 $ 205,532 $ 234,991 $ 265,581 $ 297,274 $ 330,042

Month 29 Month 30 Month 31 Month 32 Month 33 Month 342 2 2 2 2 2

58 60 62 64 66 68 3,678 3,814 3,949 4,085 4,221 4,357

Month 29 Month 30 Month 31 Month 32 Month 33 Month 34 $ 1,918,875 $ 1,989,708 $ 2,060,542 $ 2,131,375 $ 2,202,208 $ 2,273,042 $ 1,827,185 $ 1,947,314 $ 2,070,343 $ 2,196,199 $ 2,324,811 $ 2,456,111 $ 18,688,693 $ 20,636,007 $ 22,706,350 $ 24,902,549 $ 27,227,360 $ 29,683,471 $ 14,950,954 $ 16,508,805 $ 18,165,080 $ 19,922,039 $ 21,781,888 $ 23,746,777 $ 117,156 $ 120,129 $ 123,029 $ 125,856 $ 128,612 $ 131,300

$ 241,667 $ 250,000 $ 258,333 $ 266,667 $ 275,000 $ 283,333 $ 259,967 $ 269,133 $ 278,300 $ 287,467 $ 296,633 $ 305,800 $ 145,000 $ 150,000 $ 155,000 $ 160,000 $ 165,000 $ 170,000

Page 27: SaaS Sales Force Economics : Excel Model

$ 460,650 $ 477,654 $ 494,659 $ 511,663 $ 528,668 $ 545,672 $ 1,107,283 $ 1,146,788 $ 1,186,292 $ 1,225,797 $ 1,265,301 $ 1,304,805 $ 16,104,357 $ 17,251,144 $ 18,437,436 $ 19,663,233 $ 20,928,534 $ 22,233,339

Month 29 Month 30 Month 31 Month 32 Month 33 Month 34 $ 354,464 $ 411,063 $ 469,982 $ 531,163 $ 594,548 $ 660,084 $ (1,153,402) $ (742,339) $ (272,357) $ 258,806 $ 853,354 $ 1,513,438

Month 29 Month 30 Month 31 Month 32 Month 33 Month 34100% 100% 100% 100% 100% 100%

$ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417

Page 28: SaaS Sales Force Economics : Excel Model

$ 60,208 $ 60,208 $ 60,208 $ 60,208 $ 60,208 $ 60,208 $ (18,062.50) $ (18,062.50) $ (18,062.50) $ (18,062.50) $ (18,062.50) $ (18,062.50) $ 42,146 $ 42,146 $ 42,146 $ 42,146 $ 42,146 $ 42,146 $ 77,563 $ 77,563 $ 77,563 $ 77,563 $ 77,563 $ 77,563 $ 1,411,960 $ 1,489,522 $ 1,567,085 $ 1,644,647 $ 1,722,210 $ 1,799,772 $ 1,129,568 $ 1,191,618 $ 1,253,668 $ 1,315,718 $ 1,377,768 $ 1,439,818

Month 29 Month 30 Month 31 Month 32 Month 33 Month 34 $ 42,298 $ 42,298 $ 42,298 $ 42,298 $ 42,298 $ 42,298 $ 575,926 $ 618,224 $ 660,522 $ 702,820 $ 745,117 $ 787,415

Month 29 Month 30 Month 31 Month 32 Month 33 Month 34 $ 1,918,875 $ 1,989,708 $ 2,060,542 $ 2,131,375 $ 2,202,208 $ 2,273,042 $ 2,259,236 $ 2,357,695 $ 2,456,153 $ 2,554,611 $ 2,653,070 $ 2,751,528 $ 29,617,967 $ 31,975,661 $ 34,431,814 $ 36,986,425 $ 39,639,495 $ 42,391,023 $ 23,694,373 $ 25,580,529 $ 27,545,451 $ 29,589,140 $ 31,711,596 $ 33,912,818 $ 98,458 $ 98,458 $ 98,458 $ 98,458 $ 98,458 $ 98,458

Month 29 Month 30 Month 31 Month 32 Month 33 Month 34 $ 1,787,637 $ 1,866,403 $ 1,945,170 $ 2,023,937 $ 2,102,703 $ 2,181,470 $ 22,587,090 $ 24,433,741 $ 26,359,159 $ 28,363,344 $ 30,446,295 $ 32,608,013

Page 29: SaaS Sales Force Economics : Excel Model

Month 35 Month 36100% 100%

$ 35,417 $ 35,417 $ 2,951 $ 2,951 $ 65,650 $ 66,960 $ (1,641.25) $ (1,674.00) $ 66,960 $ 68,237 $ 1,295,016 $ 1,363,253 $ 1,036,013 $ 1,090,602

Page 30: SaaS Sales Force Economics : Excel Model

$ 4,167 $ 4,167 $ 4,583 $ 4,583 $ 2,500 $ 2,500 $ 8,502 $ 8,502 $ 19,752 $ 19,752 $ 672,155 $ 691,907

Month 35 Month 36 $ 33,816 $ 34,838 $ 363,858 $ 398,695

Month 35 Month 362 2

70 72 4,492 4,628

Month 35 Month 36 $ 2,343,875 $ 2,414,708 $ 2,590,031 $ 2,726,506 $ 32,273,502 $ 35,000,008 $ 25,818,802 $ 28,000,007 $ 133,920 $ 136,475

$ 291,667 $ 300,000 $ 314,967 $ 324,133 $ 175,000 $ 180,000

Page 31: SaaS Sales Force Economics : Excel Model

$ 562,676 $ 579,681 $ 1,344,310 $ 1,383,814 $ 23,577,649 $ 24,961,463

Month 35 Month 36 $ 727,715 $ 797,391 $ 2,241,153 $ 3,038,543

Month 35 Month 36100% 100%

$ 35,417 $ 35,417

Page 32: SaaS Sales Force Economics : Excel Model

$ 60,208 $ 60,208 $ (18,062.50) $ (18,062.50) $ 42,146 $ 42,146 $ 77,563 $ 77,563 $ 1,877,335 $ 1,954,897 $ 1,501,868 $ 1,563,918

Month 35 Month 36 $ 42,298 $ 42,298 $ 829,713 $ 872,011

Month 35 Month 36 $ 2,343,875 $ 2,414,708 $ 2,849,986 $ 2,948,445 $ 45,241,009 $ 48,189,454 $ 36,192,807 $ 38,551,563 $ 98,458 $ 98,458

Month 35 Month 36 $ 2,260,237 $ 2,339,003 $ 34,848,498 $ 37,167,749

Page 33: SaaS Sales Force Economics : Excel Model

Comparison of hiring 1 versus 2 sales people per month

Data for hiring 1 sales person per month

Month 1 Month 2 Month 3 Month 4 Month 5New Sales Hires 1 1 1 1 1

No of Salespeople at each stage in lifecycle Month 1 Month 2 Month 3 Month 4 Month 51st month 1 1 1 1 12nd month 1 1 1 13rd month 1 1 14th month 1 15th month 16th month7th month4th month4th month10th month & BeyondTotal Sales Headcount 1 2 3 4 5Total Leads Required 7 29 74 142 210

Income Month 1 Month 2 Month 3 Month 4 Month 5Bookings (ACV) $ 3,542 $ 15,229 $ 38,604 $ 74,021 $ 109,438 Total MRR (Billings) $ 295 $ 1,557 $ 4,735 $ 10,785 $ 19,635 Cumulative Billings $ 295 $ 1,852 $ 6,587 $ 17,372 $ 37,007 Cumulative Gross Profit $ 236 $ 1,482 $ 5,270 $ 13,898 $ 29,606 Growth in MRR $ 295 $ 1,262 $ 3,178 $ 6,050 $ 8,850

ExpensesBase Salary $ 4,167 $ 8,333 $ 12,500 $ 16,667 $ 20,833 Variable Compensation $ 4,583 $ 7,792 $ 10,817 $ 15,400 $ 19,983 Overhead $ 2,500 $ 5,000 $ 7,500 $ 10,000 $ 12,500 Cost of leads required $ 850 $ 3,656 $ 9,267 $ 17,770 $ 26,272 Total Expenses $ 12,100 $ 24,781 $ 40,084 $ 59,836 $ 79,589 Cumulative expenses $ 12,100 $ 36,881 $ 76,965 $ 136,802 $ 216,390

Breakeven Analysis Month 1 Month 2 Month 3 Month 4 Month 5Net profit $ (11,864) $ (23,535) $ (36,296) $ (51,208) $ (63,880)Cumulative Net Profit $ (11,864) $ (35,400) $ (71,696) $ (122,904) $ (186,784)

Graphing Data

Page 34: SaaS Sales Force Economics : Excel Model

MRR Month 1 Month 2 Month 3 Month 4 Month 51 sales hire a month $ 295 $ 1,557 $ 4,735 $ 10,785 $ 19,635 2 sales hires a month $ 590 $ 3,114 $ 9,470 $ 21,570 $ 39,270

Growth in MRR Month 1 Month 2 Month 3 Month 4 Month 51 sales hire a month $ 295 $ 1,262 $ 3,178 $ 6,050 $ 8,850 2 sales hires a month $ 590 $ 2,523 $ 6,356 $ 12,100 $ 17,700

Net Profit Month 1 Month 2 Month 3 Month 4 Month 51 sales hire a month $ (11,864) $ (23,535) $ (36,296) $ (51,208) $ (63,880)2 sales hires a month $ (23,728) $ (47,071) $ (72,592) $ (102,417) $ (127,761)

Cumulative Net Profit Month 1 Month 2 Month 3 Month 4 Month 51 sales hire a month $ (11,864) $ (35,400) $ (71,696) $ (122,904) $ (186,784)2 sales hires a month $ (23,728) $ (70,799) $ (143,391) $ (245,808) $ (373,569)

Month 1

Month 5

Month 9

Month 13

Month 17

Month 21

Month 25

Month 29

Month 33 $-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

MRR

1 sales hire a month2 sales hires a month

Axis Title

Month 1

Month 5

Month 9

Month 13

Month 17

Month 21

Month 25

Month 29

Month 33 $-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

MRR Growth

1 sales hire a month2 sales hires a month

Axis Title

Page 35: SaaS Sales Force Economics : Excel Model

Comparison of hiring 1 versus 2 sales people per month

Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 121 1 1 1 1 1 1

Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 121 1 1 1 1 1 11 1 1 1 1 1 11 1 1 1 1 1 11 1 1 1 1 1 11 1 1 1 1 1 11 1 1 1 1 1 1

1 1 1 1 1 11 1 1 1 1

1 1 1 11 2 3

6 7 8 9 10 11 12 278 346 413 481 549 617 685

Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 $ 144,854 $ 180,271 $ 215,687 $ 251,104 $ 286,521 $ 321,937 $ 357,354 $ 31,215 $ 45,458 $ 62,295 $ 81,663 $ 103,498 $ 127,739 $ 154,325 $ 68,223 $ 113,680 $ 175,975 $ 257,638 $ 361,137 $ 488,876 $ 643,201 $ 54,578 $ 90,944 $ 140,780 $ 206,111 $ 288,909 $ 391,101 $ 514,560 $ 11,580 $ 14,242 $ 16,838 $ 19,368 $ 21,835 $ 24,241 $ 26,586

$ 25,000 $ 29,167 $ 33,333 $ 37,500 $ 41,667 $ 45,833 $ 50,000 $ 24,567 $ 29,150 $ 33,733 $ 38,317 $ 42,900 $ 47,483 $ 52,067 $ 15,000 $ 17,500 $ 20,000 $ 22,500 $ 25,000 $ 27,500 $ 30,000 $ 34,774 $ 43,276 $ 51,778 $ 60,281 $ 68,783 $ 77,285 $ 85,787 $ 99,341 $ 119,093 $ 138,845 $ 158,597 $ 178,350 $ 198,102 $ 217,854 $ 315,731 $ 434,824 $ 573,669 $ 732,266 $ 910,616 $ 1,108,718 $ 1,326,572

Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 $ (74,368) $ (82,727) $ (89,009) $ (93,267) $ (95,551) $ (95,911) $ (94,394) $ (261,153) $ (343,880) $ (432,889) $ (526,155) $ (621,706) $ (717,617) $ (812,011)

Page 36: SaaS Sales Force Economics : Excel Model

Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 $ 31,215 $ 45,458 $ 62,295 $ 81,663 $ 103,498 $ 127,739 $ 154,325 $ 62,431 $ 90,915 $ 124,590 $ 163,326 $ 206,997 $ 255,478 $ 308,650

Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 $ 11,580 $ 14,242 $ 16,838 $ 19,368 $ 21,835 $ 24,241 $ 26,586 $ 23,161 $ 28,484 $ 33,675 $ 38,736 $ 43,670 $ 48,481 $ 53,172

Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 $ (74,368) $ (82,727) $ (89,009) $ (93,267) $ (95,551) $ (95,911) $ (94,394) $ (148,737) $ (165,454) $ (178,018) $ (186,534) $ (191,102) $ (191,821) $ (188,788)

Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 $ (261,153) $ (343,880) $ (432,889) $ (526,155) $ (621,706) $ (717,617) $ (812,011) $ (522,306) $ (687,759) $ (865,777) $ (1,052,311) $ (1,243,413) $ (1,435,234) $ (1,624,022)

Month 1

Month 5

Month 9

Month 13

Month 17

Month 21

Month 25

Month 29

Month 33 $-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

MRR Growth

1 sales hire a month2 sales hires a month

Axis Title

Month 1

Month 5

Month 9

Month 13

Month 17

Month 21

Month 25

Month 29

Month 33

$(400,000)

$(200,000)

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

Net Profit

1 sales hire a month2 sales hires a month

Axis Title

Page 37: SaaS Sales Force Economics : Excel Model

Month 13 Month 14 Month 15 Month 16 Month 17 Month 181 1 1 1 1 1

Month 13 Month 14 Month 15 Month 16 Month 17 Month 181 1 1 1 1 11 1 1 1 1 11 1 1 1 1 11 1 1 1 1 11 1 1 1 1 11 1 1 1 1 11 1 1 1 1 11 1 1 1 1 11 1 1 1 1 14 5 6 7 8 9

13 14 15 16 17 18 753 821 889 956 1,024 1,092

Month 13 Month 14 Month 15 Month 16 Month 17 Month 18 $ 392,771 $ 428,187 $ 463,604 $ 499,021 $ 534,438 $ 569,854 $ 183,198 $ 214,300 $ 247,576 $ 282,972 $ 320,434 $ 359,911 $ 826,398 $ 1,040,698 $ 1,288,275 $ 1,571,247 $ 1,891,681 $ 2,251,592 $ 661,119 $ 832,559 $ 1,030,620 $ 1,256,997 $ 1,513,345 $ 1,801,274 $ 28,873 $ 31,102 $ 33,276 $ 35,396 $ 37,462 $ 39,477

$ 54,167 $ 58,333 $ 62,500 $ 66,667 $ 70,833 $ 75,000 $ 56,650 $ 61,233 $ 65,817 $ 70,400 $ 74,983 $ 79,567 $ 32,500 $ 35,000 $ 37,500 $ 40,000 $ 42,500 $ 45,000 $ 94,290 $ 102,792 $ 111,294 $ 119,796 $ 128,298 $ 136,801 $ 237,606 $ 257,358 $ 277,111 $ 296,863 $ 316,615 $ 336,367 $ 1,564,178 $ 1,821,536 $ 2,098,647 $ 2,395,510 $ 2,712,125 $ 3,048,492

Month 13 Month 14 Month 15 Month 16 Month 17 Month 18 $ (91,048) $ (85,918) $ (79,050) $ (70,485) $ (60,268) $ (48,438) $ (903,059) $ (988,977) $ (1,068,027) $ (1,138,512) $ (1,198,780) $ (1,247,219)

Page 38: SaaS Sales Force Economics : Excel Model

Month 13 Month 14 Month 15 Month 16 Month 17 Month 18 $ 183,198 $ 214,300 $ 247,576 $ 282,972 $ 320,434 $ 359,911 $ 366,396 $ 428,600 $ 495,153 $ 565,944 $ 640,868 $ 719,822

Month 13 Month 14 Month 15 Month 16 Month 17 Month 18 $ 28,873 $ 31,102 $ 33,276 $ 35,396 $ 37,462 $ 39,477 $ 57,746 $ 62,205 $ 66,552 $ 70,791 $ 74,924 $ 78,954

Month 13 Month 14 Month 15 Month 16 Month 17 Month 18 $ (91,048) $ (85,918) $ (79,050) $ (70,485) $ (60,268) $ (48,438) $ (182,096) $ (171,837) $ (158,099) $ (140,971) $ (120,536) $ (96,877)

Month 13 Month 14 Month 15 Month 16 Month 17 Month 18 $ (903,059) $ (988,977) $ (1,068,027) $ (1,138,512) $ (1,198,780) $ (1,247,219) $ (1,806,118) $ (1,977,955) $ (2,136,054) $ (2,277,025) $ (2,397,560) $ (2,494,437)

Month 1

Month 5

Month 9

Month 13

Month 17

Month 21

Month 25

Month 29

Month 33

$(400,000)

$(200,000)

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

Net Profit

1 sales hire a month2 sales hires a month

Axis Title

Month 1

Month 5

Month 9

Month 13

Month 17

Month 21

Month 25

Month 29

Month 33

$(3,000,000)

$(2,000,000)

$(1,000,000)

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

Cumulative Net Profit

1 sales hire a month2 sales hires a month

Axis Title

Page 39: SaaS Sales Force Economics : Excel Model

Month 19 Month 20 Month 21 Month 22 Month 23 Month 241 1 1 1 1 1

Month 19 Month 20 Month 21 Month 22 Month 23 Month 241 1 1 1 1 11 1 1 1 1 11 1 1 1 1 11 1 1 1 1 11 1 1 1 1 11 1 1 1 1 11 1 1 1 1 11 1 1 1 1 11 1 1 1 1 1

10 11 12 13 14 1519 20 21 22 23 24

1,160 1,228 1,296 1,364 1,432 1,500

Month 19 Month 20 Month 21 Month 22 Month 23 Month 24 $ 605,271 $ 640,688 $ 676,104 $ 711,521 $ 746,938 $ 782,354 $ 401,353 $ 444,709 $ 489,934 $ 536,979 $ 585,799 $ 636,350 $ 2,652,945 $ 3,097,654 $ 3,587,588 $ 4,124,566 $ 4,710,365 $ 5,346,716 $ 2,122,356 $ 2,478,123 $ 2,870,070 $ 3,299,653 $ 3,768,292 $ 4,277,372 $ 41,441 $ 43,357 $ 45,224 $ 47,045 $ 48,820 $ 50,551

$ 79,167 $ 83,333 $ 87,500 $ 91,667 $ 95,833 $ 100,000 $ 84,150 $ 88,733 $ 93,317 $ 97,900 $ 102,483 $ 107,067 $ 47,500 $ 50,000 $ 52,500 $ 55,000 $ 57,500 $ 60,000 $ 145,303 $ 153,805 $ 162,307 $ 170,809 $ 179,312 $ 187,814 $ 356,119 $ 375,872 $ 395,624 $ 415,376 $ 435,128 $ 454,881 $ 3,404,612 $ 3,780,483 $ 4,176,107 $ 4,591,483 $ 5,026,612 $ 5,481,492

Month 19 Month 20 Month 21 Month 22 Month 23 Month 24 $ (35,037) $ (20,104) $ (3,677) $ 14,207 $ 33,511 $ 54,200 $ (1,282,256) $ (1,302,360) $ (1,306,037) $ (1,291,830) $ (1,258,319) $ (1,204,120)

Page 40: SaaS Sales Force Economics : Excel Model

Month 19 Month 20 Month 21 Month 22 Month 23 Month 24 $ 401,353 $ 444,709 $ 489,934 $ 536,979 $ 585,799 $ 636,350 $ 802,705 $ 889,419 $ 979,867 $ 1,073,957 $ 1,171,598 $ 1,272,700

Month 19 Month 20 Month 21 Month 22 Month 23 Month 24 $ 41,441 $ 43,357 $ 45,224 $ 47,045 $ 48,820 $ 50,551 $ 82,883 $ 86,714 $ 90,449 $ 94,090 $ 97,641 $ 101,102

Month 19 Month 20 Month 21 Month 22 Month 23 Month 24 $ (35,037) $ (20,104) $ (3,677) $ 14,207 $ 33,511 $ 54,200 $ (70,075) $ (40,208) $ (7,354) $ 28,414 $ 67,022 $ 108,399

Month 19 Month 20 Month 21 Month 22 Month 23 Month 24 $ (1,282,256) $ (1,302,360) $ (1,306,037) $ (1,291,830) $ (1,258,319) $ (1,204,120) $ (2,564,512) $ (2,604,720) $ (2,612,074) $ (2,583,661) $ (2,516,639) $ (2,408,240)

Month 1

Month 5

Month 9

Month 13

Month 17

Month 21

Month 25

Month 29

Month 33

$(3,000,000)

$(2,000,000)

$(1,000,000)

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

Cumulative Net Profit

1 sales hire a month2 sales hires a month

Axis Title

Page 41: SaaS Sales Force Economics : Excel Model

Month 25 Month 26 Month 27 Month 28 Month 29 Month 301 1 1 1 1 1

Month 25 Month 26 Month 27 Month 28 Month 29 Month 301 1 1 1 1 11 1 1 1 1 11 1 1 1 1 11 1 1 1 1 11 1 1 1 1 11 1 1 1 1 11 1 1 1 1 11 1 1 1 1 11 1 1 1 1 1

16 17 18 19 20 2125 26 27 28 29 30

1,567 1,635 1,703 1,771 1,839 1,907

Month 25 Month 26 Month 27 Month 28 Month 29 Month 30 $ 817,771 $ 853,187 $ 888,604 $ 924,021 $ 959,437 $ 994,854 $ 688,589 $ 742,473 $ 797,962 $ 855,014 $ 913,592 $ 973,657 $ 6,035,305 $ 6,777,778 $ 7,575,740 $ 8,430,754 $ 9,344,346 $ 10,318,003 $ 4,828,244 $ 5,422,222 $ 6,060,592 $ 6,744,603 $ 7,475,477 $ 8,254,403 $ 52,239 $ 53,884 $ 55,489 $ 57,053 $ 58,578 $ 60,065

$ 104,167 $ 108,333 $ 112,500 $ 116,667 $ 120,833 $ 125,000 $ 111,650 $ 116,233 $ 120,817 $ 125,400 $ 129,983 $ 134,567 $ 62,500 $ 65,000 $ 67,500 $ 70,000 $ 72,500 $ 75,000 $ 196,316 $ 204,818 $ 213,321 $ 221,823 $ 230,325 $ 238,827 $ 474,633 $ 494,385 $ 514,137 $ 533,889 $ 553,642 $ 573,394 $ 5,956,125 $ 6,450,510 $ 6,964,647 $ 7,498,537 $ 8,052,178 $ 8,625,572

Month 25 Month 26 Month 27 Month 28 Month 29 Month 30 $ 76,238 $ 99,594 $ 124,232 $ 150,122 $ 177,232 $ 205,532 $ (1,127,881) $ (1,028,288) $ (904,055) $ (753,933) $ (576,701) $ (371,169)

Page 42: SaaS Sales Force Economics : Excel Model

Month 25 Month 26 Month 27 Month 28 Month 29 Month 30 $ 688,589 $ 742,473 $ 797,962 $ 855,014 $ 913,592 $ 973,657 $ 1,377,178 $ 1,484,947 $ 1,595,924 $ 1,710,029 $ 1,827,185 $ 1,947,314

Month 25 Month 26 Month 27 Month 28 Month 29 Month 30 $ 52,239 $ 53,884 $ 55,489 $ 57,053 $ 58,578 $ 60,065 $ 104,478 $ 107,768 $ 110,977 $ 114,105 $ 117,156 $ 120,129

Month 25 Month 26 Month 27 Month 28 Month 29 Month 30 $ 76,238 $ 99,594 $ 124,232 $ 150,122 $ 177,232 $ 205,532 $ 152,477 $ 199,187 $ 248,464 $ 300,244 $ 354,464 $ 411,063

Month 25 Month 26 Month 27 Month 28 Month 29 Month 30 $ (1,127,881) $ (1,028,288) $ (904,055) $ (753,933) $ (576,701) $ (371,169) $ (2,255,763) $ (2,056,575) $ (1,808,111) $ (1,507,867) $ (1,153,402) $ (742,339)

Page 43: SaaS Sales Force Economics : Excel Model

Month 31 Month 32 Month 33 Month 34 Month 35 Month 361 1 1 1 1 1

Month 31 Month 32 Month 33 Month 34 Month 35 Month 361 1 1 1 1 11 1 1 1 1 11 1 1 1 1 11 1 1 1 1 11 1 1 1 1 11 1 1 1 1 11 1 1 1 1 11 1 1 1 1 11 1 1 1 1 1

22 23 24 25 26 2731 32 33 34 35 36

1,975 2,043 2,110 2,178 2,246 2,314

Month 31 Month 32 Month 33 Month 34 Month 35 Month 36 $ 1,030,271 $ 1,065,688 $ 1,101,104 $ 1,136,521 $ 1,171,938 $ 1,207,354 $ 1,035,171 $ 1,098,099 $ 1,162,406 $ 1,228,056 $ 1,295,016 $ 1,363,253 $ 11,353,175 $ 12,451,274 $ 13,613,680 $ 14,841,735 $ 16,136,751 $ 17,500,004 $ 9,082,540 $ 9,961,019 $ 10,890,944 $ 11,873,388 $ 12,909,401 $ 14,000,003 $ 61,514 $ 62,928 $ 64,306 $ 65,650 $ 66,960 $ 68,237

$ 129,167 $ 133,333 $ 137,500 $ 141,667 $ 145,833 $ 150,000 $ 139,150 $ 143,733 $ 148,317 $ 152,900 $ 157,483 $ 162,067 $ 77,500 $ 80,000 $ 82,500 $ 85,000 $ 87,500 $ 90,000 $ 247,329 $ 255,832 $ 264,334 $ 272,836 $ 281,338 $ 289,840 $ 593,146 $ 612,898 $ 632,650 $ 652,403 $ 672,155 $ 691,907 $ 9,218,718 $ 9,831,616 $ 10,464,267 $ 11,116,670 $ 11,788,825 $ 12,480,732

Month 31 Month 32 Month 33 Month 34 Month 35 Month 36 $ 234,991 $ 265,581 $ 297,274 $ 330,042 $ 363,858 $ 398,695 $ (136,178) $ 129,403 $ 426,677 $ 756,719 $ 1,120,576 $ 1,519,272

Page 44: SaaS Sales Force Economics : Excel Model

Month 31 Month 32 Month 33 Month 34 Month 35 Month 36 $ 1,035,171 $ 1,098,099 $ 1,162,406 $ 1,228,056 $ 1,295,016 $ 1,363,253 $ 2,070,343 $ 2,196,199 $ 2,324,811 $ 2,456,111 $ 2,590,031 $ 2,726,506

Month 31 Month 32 Month 33 Month 34 Month 35 Month 36 $ 61,514 $ 62,928 $ 64,306 $ 65,650 $ 66,960 $ 68,237 $ 123,029 $ 125,856 $ 128,612 $ 131,300 $ 133,920 $ 136,475

Month 31 Month 32 Month 33 Month 34 Month 35 Month 36 $ 234,991 $ 265,581 $ 297,274 $ 330,042 $ 363,858 $ 398,695 $ 469,982 $ 531,163 $ 594,548 $ 660,084 $ 727,715 $ 797,391

Month 31 Month 32 Month 33 Month 34 Month 35 Month 36 $ (136,178) $ 129,403 $ 426,677 $ 756,719 $ 1,120,576 $ 1,519,272 $ (272,357) $ 258,806 $ 853,354 $ 1,513,438 $ 2,241,153 $ 3,038,543

Page 45: SaaS Sales Force Economics : Excel Model

Churn Rate Comparison

This is simply a copy of the first tab, with a different churn rate (1.25% versus 2.5%)

Net Profit Month 1 Month 2 Month 3 Month 4Churn 1.25% $ (23,728) $ (47,065) $ (72,555) $ (102,285)Churn 2.5% $ (23,728) $ (47,071) $ (72,592) $ (102,417)

Cumulative Net Profit Month 1 Month 2 Month 3 Month 4Churn 1.25% $ (23,728) $ (70,793) $ (143,349) $ (245,634)Churn 2.5% $ (23,728) $ (70,799) $ (143,391) $ (245,808)

Part 1: Model the ecomomics of a single sales personSales compensation and overheadBase Compensation $ 50,000 Variable Compensation $ 55,000 with 50% draw for first four monthsDraw on Variable Comp 100% 70% 30% 0%Additional overhead $ 30,000 Sales attrition factor 15% a factor to discount bookings to account for failed sales hires and attrition

On target annual bookings Annual Bookings 500,000 ACV (Annual Contract Value) Monthly Bookings $ 41,667

Churn Rate and MarginChurn Rate (monthly) 1.25%

Month 1

Month 4

Month 7

Month 10

Month 13

Month 16

Month 19

Month 22

Month 25

Month 28

Month 31

Month 34

$(400,000)

$(200,000)

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

Churn 1.25%Churn 2.5%

Month 1

Month 4

Month 7

Month 10

Month 13

Month 16

Month 19

Month 22

Month 25

Month 28

Month 31

Month 34

$(4,000,000)

$(2,000,000)

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

Churn 1.25%Churn 2.5%

Page 46: SaaS Sales Force Economics : Excel Model

Gross Margin 80.00%

Cost of Leads required to feed salesAverage Deal Size $6,000 (ACV) Annual Contract ValueDeals to meet target 6.9 per monthLeads to closed deal 10 Cost per Qualified Lead $125 Cost of Leads required $ 8,698 per month, for 1 fully productive sales person

Other interesting CalculationsLead Gen costs per deal $ 1,253 Excludes people costsSelling costs per deal $ 1,620 Excludes cost of sales managementTotal CAC $ 2,873 Excludes people costs in marketing, and sales management. (CAC= Cost to Acquire a Customer)Total LTV $ 32,000 Calculated by dividing average monthly gross profit per customer (ARPU x Gross Margin ) by the churn rate

Income Month 1 Month 2 Month 3 Month 4Productivity Ramp 10% 33% 66% 100%Bookings (ACV) $ 3,542 $ 11,688 $ 23,375 $ 35,417 New MRR added this month $ 295 $ 974 $ 1,948 $ 2,951 MRR from prior months bookings $ 295 $ 1,265 $ 3,198 Churn $ (3.69) $ (15.82) $ (39.97)Total MRR (Billings) $ 295 $ 1,265 $ 3,198 $ 6,109 Cumulative Billings $ 295 $ 1,561 $ 4,758 $ 10,867 Cumulative Gross Profit $ 236 $ 1,248 $ 3,806 $ 8,694

ExpensesBase Salary $ 4,167 $ 4,167 $ 4,167 $ 4,167 Variable Compensation $ 4,583 $ 3,208 $ 3,025 $ 4,583 Overhead $ 2,500 $ 2,500 $ 2,500 $ 2,500 Cost of leads required $ 850 $ 2,806 $ 5,611 $ 8,502 Total Expenses $ 12,100 $ 12,681 $ 15,303 $ 19,752 Cumulative expenses $ 12,100 $ 24,781 $ 40,084 $ 59,836

Breakeven Analysis Month 1 Month 2 Month 3 Month 4Net profit $ (11,864) $ (11,668) $ (12,745) $ (14,865)Cumulative Net Profit $ (11,864) $ (23,533) $ (36,278) $ (51,143)

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12 $(5,000)

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

MRR - Single Sales Hire

ChurnMRR from prior months bookingsNew MRR added this month

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12 $(500)

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

Bookings & Churn - Single Sales Hire

ChurnNew MRR added this month

Page 47: SaaS Sales Force Economics : Excel Model

Part 2: Look at the Overall Economics when Ramping Sales Hires

Month 1 Month 2 Month 3 Month 4New Sales Hires 2 2 2 2Total Sales Headcount 2 4 6 8Total Leads Required 14 58 148 284

Income Month 1 Month 2 Month 3 Month 4Bookings (ACV) $ 7,083 $ 30,458 $ 77,208 $ 148,042 Total MRR (Billings) $ 590 $ 3,121 $ 9,516 $ 21,734 Cumulative Billings $ 590 $ 3,711 $ 13,227 $ 34,961 Cumulative Gross Profit $ 472 $ 2,969 $ 10,582 $ 27,969 Growth in MRR $ 590 $ 2,531 $ 6,395 $ 12,218

ExpensesBase Salary $ 8,333 $ 16,667 $ 25,000 $ 33,333 Variable Compensation $ 9,167 $ 15,583 $ 21,633 $ 30,800 Overhead $ 5,000 $ 10,000 $ 15,000 $ 20,000 Cost of leads required $ 1,700 $ 7,312 $ 18,535 $ 35,539 Total Expenses $ 24,200 $ 49,562 $ 80,168 $ 119,673 Cumulative expenses $ 24,200 $ 73,762 $ 153,931 $ 273,603

Breakeven Analysis Month 1 Month 2 Month 3 Month 4Net profit $ (23,728) $ (47,065) $ (72,555) $ (102,285)Cumulative Net Profit $ (23,728) $ (70,793) $ (143,349) $ (245,634)

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

$(250,000)

$(200,000)

$(150,000)

$(100,000)

$(50,000)

$-

$50,000

$100,000

$150,000

$200,000

$250,000

Net profit

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

$(2,500,000)

$(2,000,000)

$(1,500,000)

$(1,000,000)

$(500,000)

$-

Cumulative Net Profit

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12 $(5,000)

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

MRR - Single Sales Hire

ChurnMRR from prior months bookingsNew MRR added this month

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12 $(500)

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

Bookings & Churn - Single Sales Hire

ChurnNew MRR added this month

Page 48: SaaS Sales Force Economics : Excel Model

Part 3: Look at the impact of collecting 1 year's payment in advance

Step 1: Individual Sales personIncome Month 1 Month 2 Month 3 Month 4Productivity Ramp 10% 33% 66% 100%Bookings (ACV) $ 3,542 $ 11,688 $ 23,375 $ 35,417 Renewable contract valueChurnRenewals (renewable - churn)Billings (bookings + renewals) $ 3,542 $ 11,688 $ 23,375 $ 35,417 Cumulative Billings $ 3,542 $ 15,229 $ 38,604 $ 74,021 Cumulative Gross Profit $ 2,833 $ 12,183 $ 30,883 $ 59,217

Breakeven Analysis Month 1 Month 2 Month 3 Month 4Net Cash Flows $ (9,267) $ (3,331) $ 3,397 $ 8,581 Cumulative Net Cash Flows $ (9,267) $ (12,598) $ (9,201) $ (620)

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

$(250,000)

$(200,000)

$(150,000)

$(100,000)

$(50,000)

$-

$50,000

$100,000

$150,000

$200,000

$250,000

Net profit

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

$(2,500,000)

$(2,000,000)

$(1,500,000)

$(1,000,000)

$(500,000)

$-

Cumulative Net Profit

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23 $-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

Total MRR (Billings)

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23 $-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

Growth in MRR

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Month 13

Month 14

Month 15

Month 16

Month 17

Month 18

Month 19

Month 20

Month 21

Month 22

Month 23

Month 24

$(20,000)

$(10,000)

$-

$10,000

$20,000

$30,000

$40,000

Net Cash Flows

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23 $(100,000)

$-

$100,000

$200,000

$300,000

$400,000

$500,000

Cumulative Net Cash Flows

Page 49: SaaS Sales Force Economics : Excel Model

Step 2: Look at the Overall Economics when Ramping Sales HiresIncome Month 1 Month 2 Month 3 Month 4Bookings (ACV) $ 7,083 $ 30,458 $ 77,208 $ 148,042 Billings less churn (MRR) $ 7,083 $ 30,458 $ 77,208 $ 148,042 Cumulative Billings $ 7,083 $ 37,542 $ 114,750 $ 262,792 Cumulative Gross Profit $ 5,667 $ 30,033 $ 91,800 $ 210,233 Growth in MRR $ 7,083 $ 23,375 $ 46,750 $ 70,833

Breakeven Analysis Month 1 Month 2 Month 3 Month 4Net Cash Flows $ (6,434) $ 11,686 $ 46,464 $ 98,681 Cumulative Net Cash Flows $ (18,534) $ (19,529) $ 11,632 $ 90,561

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Month 13

Month 14

Month 15

Month 16

Month 17

Month 18

Month 19

Month 20

Month 21

Month 22

Month 23

Month 24

$(20,000)

$(10,000)

$-

$10,000

$20,000

$30,000

$40,000

Net Cash Flows

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23 $(100,000)

$-

$100,000

$200,000

$300,000

$400,000

$500,000

Cumulative Net Cash Flows

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

Month 25

Month 27

Month 29

Month 31

Month 33

Month 35 $(500,000)

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

Net Cash Flows

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

Month 25

Month 27

Month 29

Month 31

Month 33

Month 35 $(5,000,000)

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

Cumulative Net Cash Flows

Page 50: SaaS Sales Force Economics : Excel Model

Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 $ (127,416) $ (148,003) $ (164,105) $ (175,777) $ (183,075) $ (186,053) $ (127,761) $ (148,737) $ (165,454) $ (178,018) $ (186,534) $ (191,102)

Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 $ (373,049) $ (521,053) $ (685,157) $ (860,934) $ (1,044,009) $ (1,230,062) $ (373,569) $ (522,306) $ (687,759) $ (865,777) $ (1,052,311) $ (1,243,413)

Cells formated like this: are input variables

0% 0% 0% 0% 0%

a factor to discount bookings to account for failed sales hires and attrition

Quick Marketing Calculation50%

$1.50 $ 0.75

3%

Month 1

Month 4

Month 7

Month 10

Month 13

Month 16

Month 19

Month 22

Month 25

Month 28

Month 31

Month 34

$(4,000,000)

$(2,000,000)

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

Churn 1.25%Churn 2.5%

Page 51: SaaS Sales Force Economics : Excel Model

20%

15

167$125

per month, for 1 fully productive sales person

Excludes people costs in marketing, and sales management. (CAC= Cost to Acquire a Customer)Calculated by dividing average monthly gross profit per customer (ARPU x Gross Margin ) by the churn rate

Month 5 Month 6 Month 7 Month 8 Month 9 Month 10100% 100% 100% 100% 100% 100%

$ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 6,109 $ 8,984 $ 11,823 $ 14,627 $ 17,395 $ 20,129 $ (76.36) $ (112.30) $ (147.79) $ (182.83) $ (217.44) $ (251.61) $ 8,984 $ 11,823 $ 14,627 $ 17,395 $ 20,129 $ 22,829 $ 19,851 $ 31,674 $ 46,301 $ 63,696 $ 83,825 $ 106,654 $ 15,881 $ 25,339 $ 37,040 $ 50,957 $ 67,060 $ 85,323

$ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 79,589 $ 99,341 $ 119,093 $ 138,845 $ 158,597 $ 178,350

Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 $ (12,565) $ (10,294) $ (8,051) $ (5,836) $ (3,649) $ (1,489) $ (63,708) $ (74,002) $ (82,052) $ (87,888) $ (91,537) $ (93,026)

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12 $(5,000)

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

MRR - Single Sales Hire

ChurnMRR from prior months bookingsNew MRR added this month

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11 $-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

MRR Versus Expenses

Total MRR (Billings)Total Expenses

Axis Title

Page 52: SaaS Sales Force Economics : Excel Model

Month 5 Month 6 Month 7 Month 8 Month 9 Month 102 2 2 2 2 2

10 12 14 16 18 20 420 555 691 827 963 1,098

Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 $ 218,875 $ 289,708 $ 360,542 $ 431,375 $ 502,208 $ 573,042 $ 39,702 $ 63,348 $ 92,601 $ 127,392 $ 167,650 $ 213,308 $ 74,663 $ 138,011 $ 230,613 $ 358,004 $ 525,654 $ 738,962 $ 59,731 $ 110,409 $ 184,490 $ 286,403 $ 420,523 $ 591,170 $ 17,968 $ 23,646 $ 29,253 $ 34,790 $ 40,258 $ 45,658

$ 41,667 $ 50,000 $ 58,333 $ 66,667 $ 75,000 $ 83,333 $ 39,967 $ 49,133 $ 58,300 $ 67,467 $ 76,633 $ 85,800 $ 25,000 $ 30,000 $ 35,000 $ 40,000 $ 45,000 $ 50,000 $ 52,544 $ 69,548 $ 86,553 $ 103,557 $ 120,561 $ 137,566 $ 159,177 $ 198,681 $ 238,186 $ 277,690 $ 317,195 $ 356,699 $ 432,780 $ 631,462 $ 869,647 $ 1,147,338 $ 1,464,532 $ 1,821,232

Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 $ (127,416) $ (148,003) $ (164,105) $ (175,777) $ (183,075) $ (186,053) $ (373,049) $ (521,053) $ (685,157) $ (860,934) $ (1,044,009) $ (1,230,062)

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

$(2,500,000)

$(2,000,000)

$(1,500,000)

$(1,000,000)

$(500,000)

$-

Cumulative Net Profit

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

Month 25

Month 27

Month 29

Month 31

Month 33

Month 35

$(3,000,000)

$(2,000,000)

$(1,000,000)

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

Cumulative Net Profit

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12 $(5,000)

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

MRR - Single Sales Hire

ChurnMRR from prior months bookingsNew MRR added this month

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11 $-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

MRR Versus Expenses

Total MRR (Billings)Total Expenses

Axis Title

Page 53: SaaS Sales Force Economics : Excel Model

Month 5 Month 6 Month 7 Month 8 Month 9 Month 10100% 100% 100% 100% 100% 100%

$ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417

$ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 109,438 $ 144,854 $ 180,271 $ 215,687 $ 251,104 $ 286,521 $ 87,550 $ 115,883 $ 144,217 $ 172,550 $ 200,883 $ 229,217

Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 $ 8,581 $ 8,581 $ 8,581 $ 8,581 $ 8,581 $ 8,581 $ 7,961 $ 16,543 $ 25,124 $ 33,705 $ 42,286 $ 50,867

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

$(2,500,000)

$(2,000,000)

$(1,500,000)

$(1,000,000)

$(500,000)

$-

Cumulative Net Profit

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23 $-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

Growth in MRR

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

Month 25

Month 27

Month 29

Month 31

Month 33

Month 35

$(3,000,000)

$(2,000,000)

$(1,000,000)

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

Cumulative Net Profit

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23 $(100,000)

$-

$100,000

$200,000

$300,000

$400,000

$500,000

Cumulative Net Cash Flows

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

$(20,000)

$(10,000)

$-

$10,000

$20,000

$30,000

$40,000

Cashflow comparison - monthly payments vs year in advance

Net profitNet Cash Flows

Axis Title

Page 54: SaaS Sales Force Economics : Excel Model

Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 $ 218,875 $ 289,708 $ 360,542 $ 431,375 $ 502,208 $ 573,042 $ 218,875 $ 289,708 $ 360,542 $ 431,375 $ 502,208 $ 573,042 $ 481,667 $ 771,375 $ 1,131,917 $ 1,563,292 $ 2,065,500 $ 2,638,542 $ 385,333 $ 617,100 $ 905,533 $ 1,250,633 $ 1,652,400 $ 2,110,833 $ 70,833 $ 70,833 $ 70,833 $ 70,833 $ 70,833 $ 70,833

Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 $ 155,348 $ 212,014 $ 268,681 $ 325,348 $ 382,014 $ 438,681 $ 226,156 $ 418,419 $ 667,347 $ 972,943 $ 1,335,205 $ 1,754,134

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23 $(100,000)

$-

$100,000

$200,000

$300,000

$400,000

$500,000

Cumulative Net Cash Flows

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

Month 25

Month 27

Month 29

Month 31

Month 33

Month 35 $(5,000,000)

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

Cumulative Net Cash Flows

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

$(20,000)

$(10,000)

$-

$10,000

$20,000

$30,000

$40,000

Cashflow comparison - monthly payments vs year in advance

Net profitNet Cash Flows

Axis Title

Month 1

Month 5

Month 9

Month 13

Month 17

Month 21

Month 25

Month 29

Month 33 $(500,000)

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

Cashflow comparison - monthly payments vs year in advance

Net profitNet Cash Flows

Axis Title

Page 55: SaaS Sales Force Economics : Excel Model

Month 11 Month 12 Month 13 Month 14 Month 15 Month 16 $ (184,765) $ (179,266) $ (169,606) $ (155,839) $ (138,015) $ (116,186) $ (191,821) $ (188,788) $ (182,096) $ (171,837) $ (158,099) $ (140,971)

Month 11 Month 12 Month 13 Month 14 Month 15 Month 16 $ (1,414,827) $ (1,594,093) $ (1,763,699) $ (1,919,538) $ (2,057,554) $ (2,173,740) $ (1,435,234) $ (1,624,022) $ (1,806,118) $ (1,977,955) $ (2,136,054) $ (2,277,025)

Quick Marketing Calculationamount of traffic that is organic versus paidcost per paid visitor (Google AdWords, etc.)Cost per visitor (both paid and unpaid)visitors convert to raw leads

Page 56: SaaS Sales Force Economics : Excel Model

number of raw leads that turn into qualified leads

qualified leadraw leads requiredvisitors requiredCost of visitors (also = Cost per qualified lead)

Month 11 Month 12 Month 13 Month 14 Month 15 Month 16100% 100% 100% 100% 100% 100%

$ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 22,829 $ 25,495 $ 28,128 $ 30,727 $ 33,295 $ 35,830 $ (285.36) $ (318.69) $ (351.60) $ (384.09) $ (416.18) $ (447.87) $ 25,495 $ 28,128 $ 30,727 $ 33,295 $ 35,830 $ 38,333 $ 132,149 $ 160,277 $ 191,004 $ 224,299 $ 260,129 $ 298,462 $ 105,719 $ 128,221 $ 152,803 $ 179,439 $ 208,103 $ 238,770

$ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 198,102 $ 217,854 $ 237,606 $ 257,358 $ 277,111 $ 296,863

Month 11 Month 12 Month 13 Month 14 Month 15 Month 16 $ 644 $ 2,750 $ 4,830 $ 6,884 $ 8,912 $ 10,915 $ (92,383) $ (89,633) $ (84,803) $ (77,919) $ (69,008) $ (58,093)

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

$(20,000)

$(15,000)

$(10,000)

$(5,000)

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

Net profit - New Sales Hire

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11 $-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

MRR Versus Expenses

Total MRR (Billings)Total Expenses

Axis Title

Page 57: SaaS Sales Force Economics : Excel Model

Month 11 Month 12 Month 13 Month 14 Month 15 Month 162 2 2 2 2 2

22 24 26 28 30 32 1,234 1,370 1,506 1,641 1,777 1,913

Month 11 Month 12 Month 13 Month 14 Month 15 Month 16 $ 643,875 $ 714,708 $ 785,542 $ 856,375 $ 927,208 $ 998,042 $ 264,298 $ 320,553 $ 382,008 $ 448,597 $ 520,257 $ 596,924 $ 1,003,260 $ 1,323,813 $ 1,705,821 $ 2,154,418 $ 2,674,675 $ 3,271,599 $ 802,608 $ 1,059,050 $ 1,364,656 $ 1,723,534 $ 2,139,740 $ 2,617,279 $ 50,990 $ 56,255 $ 61,455 $ 66,589 $ 71,660 $ 76,667

$ 91,667 $ 100,000 $ 108,333 $ 116,667 $ 125,000 $ 133,333 $ 94,967 $ 104,133 $ 113,300 $ 122,467 $ 131,633 $ 140,800 $ 55,000 $ 60,000 $ 65,000 $ 70,000 $ 75,000 $ 80,000 $ 154,570 $ 171,575 $ 188,579 $ 205,584 $ 222,588 $ 239,592 $ 396,204 $ 435,708 $ 475,212 $ 514,717 $ 554,221 $ 593,726 $ 2,217,435 $ 2,653,143 $ 3,128,356 $ 3,643,072 $ 4,197,294 $ 4,791,019

Month 11 Month 12 Month 13 Month 14 Month 15 Month 16 $ (184,765) $ (179,266) $ (169,606) $ (155,839) $ (138,015) $ (116,186) $ (1,414,827) $ (1,594,093) $ (1,763,699) $ (1,919,538) $ (2,057,554) $ (2,173,740)

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

$(20,000)

$(15,000)

$(10,000)

$(5,000)

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

Net profit - New Sales Hire

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

Month 25

Month 27

Month 29

Month 31

Month 33

Month 35

$(3,000,000)

$(2,000,000)

$(1,000,000)

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

Cumulative Net Profit

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11 $-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

MRR Versus Expenses

Total MRR (Billings)Total Expenses

Axis Title

Page 58: SaaS Sales Force Economics : Excel Model

Month 11 Month 12 Month 13 Month 14 Month 15 Month 16100% 100% 100% 100% 100% 100%

$ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 3,542 $ 11,688 $ 23,375 $ 35,417 $ 35,417 $ (531.25) $ (1,753.13) $ (3,506.25) $ (5,312.50) $ (5,312.50) $ 3,010 $ 9,934 $ 19,869 $ 30,104 $ 30,104

$ 35,417 $ 38,427 $ 45,351 $ 55,285 $ 65,521 $ 65,521 $ 321,938 $ 360,365 $ 405,716 $ 461,001 $ 526,522 $ 592,043 $ 257,550 $ 288,292 $ 324,573 $ 368,801 $ 421,218 $ 473,634

Month 11 Month 12 Month 13 Month 14 Month 15 Month 16 $ 8,581 $ 10,989 $ 16,529 $ 24,476 $ 32,664 $ 32,664 $ 59,448 $ 70,438 $ 86,966 $ 111,442 $ 144,107 $ 176,771

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

Month 25

Month 27

Month 29

Month 31

Month 33

Month 35

$(3,000,000)

$(2,000,000)

$(1,000,000)

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

Cumulative Net Profit

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

$(20,000)

$(10,000)

$-

$10,000

$20,000

$30,000

$40,000

Cashflow comparison - monthly payments vs year in advance

Net profitNet Cash Flows

Axis Title

Month 1

Month 4

Month 7

Month 10

Month 13

Month 16

Month 19

Month 22

$(200,000)

$(100,000)

$-

$100,000

$200,000

$300,000

$400,000

$500,000

Cumulative Cashflow comparision - monthly payments vs year in advance

Cumulative Net ProfitCumulative Net Cash Flows

Axis Title

Page 59: SaaS Sales Force Economics : Excel Model

Month 11 Month 12 Month 13 Month 14 Month 15 Month 16 $ 643,875 $ 714,708 $ 785,542 $ 856,375 $ 927,208 $ 998,042 $ 643,875 $ 714,708 $ 786,604 $ 860,944 $ 938,790 $ 1,020,248 $ 3,282,417 $ 3,997,125 $ 4,783,729 $ 5,644,673 $ 6,583,462 $ 7,603,710 $ 2,625,933 $ 3,197,700 $ 3,826,983 $ 4,515,738 $ 5,266,770 $ 6,082,968 $ 70,833 $ 70,833 $ 71,896 $ 74,340 $ 77,846 $ 81,458

Month 11 Month 12 Month 13 Month 14 Month 15 Month 16 $ 495,348 $ 552,014 $ 609,531 $ 669,003 $ 731,279 $ 796,446 $ 2,229,730 $ 2,761,992 $ 3,351,771 $ 4,001,021 $ 4,712,549 $ 5,489,243

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

$(20,000)

$(10,000)

$-

$10,000

$20,000

$30,000

$40,000

Cashflow comparison - monthly payments vs year in advance

Net profitNet Cash Flows

Axis Title

Month 1

Month 6

Month 11

Month 16

Month 21

Month 26

Month 31

Month 36 $(5,000,000) $-

$5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000

Cumulative Cashflow comparision - monthly payments vs year in advance

Cumulative Net ProfitCumulative Net Cash Flows

Axis Title

Month 1

Month 4

Month 7

Month 10

Month 13

Month 16

Month 19

Month 22

$(200,000)

$(100,000)

$-

$100,000

$200,000

$300,000

$400,000

$500,000

Cumulative Cashflow comparision - monthly payments vs year in advance

Cumulative Net ProfitCumulative Net Cash Flows

Axis Title

Month 1

Month 5

Month 9

Month 13

Month 17

Month 21

Month 25

Month 29

Month 33 $(500,000)

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

Cashflow comparison - monthly payments vs year in advance

Net profitNet Cash Flows

Axis Title

Page 60: SaaS Sales Force Economics : Excel Model

Month 17 Month 18 Month 19 Month 20 Month 21 Month 22 $ (90,402) $ (60,711) $ (27,163) $ 10,194 $ 51,313 $ 96,146 $ (120,536) $ (96,877) $ (70,075) $ (40,208) $ (7,354) $ 28,414

Month 17 Month 18 Month 19 Month 20 Month 21 Month 22 $ (2,264,142) $ (2,324,853) $ (2,352,015) $ (2,341,821) $ (2,290,508) $ (2,194,362) $ (2,397,560) $ (2,494,437) $ (2,564,512) $ (2,604,720) $ (2,612,074) $ (2,583,661)

Page 61: SaaS Sales Force Economics : Excel Model

Month 17 Month 18 Month 19 Month 20 Month 21 Month 22100% 100% 100% 100% 100% 100%

$ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 38,333 $ 40,806 $ 43,247 $ 45,658 $ 48,038 $ 50,389 $ (479.17) $ (510.07) $ (540.59) $ (570.72) $ (600.48) $ (629.87) $ 40,806 $ 43,247 $ 45,658 $ 48,038 $ 50,389 $ 52,711 $ 339,268 $ 382,515 $ 428,173 $ 476,211 $ 526,600 $ 579,311 $ 271,414 $ 306,012 $ 342,538 $ 380,969 $ 421,280 $ 463,449

$ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 316,615 $ 336,367 $ 356,119 $ 375,872 $ 395,624 $ 415,376

Month 17 Month 18 Month 19 Month 20 Month 21 Month 22 $ 12,892 $ 14,845 $ 16,774 $ 18,679 $ 20,559 $ 22,417 $ (45,201) $ (30,355) $ (13,581) $ 5,097 $ 25,656 $ 48,073

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

$(20,000)

$(15,000)

$(10,000)

$(5,000)

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

Net profit - New Sales Hire

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

Month 25

Month 27

Month 29

Month 31

Month 33

Month 35

$(200,000)

$(100,000)

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

Cumulative Net Profit - New Sales Hire

Page 62: SaaS Sales Force Economics : Excel Model

Month 17 Month 18 Month 19 Month 20 Month 21 Month 222 2 2 2 2 2

34 36 38 40 42 44 2,049 2,184 2,320 2,456 2,592 2,727

Month 17 Month 18 Month 19 Month 20 Month 21 Month 22 $ 1,068,875 $ 1,139,708 $ 1,210,542 $ 1,281,375 $ 1,352,208 $ 1,423,042 $ 678,536 $ 765,030 $ 856,345 $ 952,422 $ 1,053,201 $ 1,158,623 $ 3,950,135 $ 4,715,164 $ 5,571,510 $ 6,523,932 $ 7,577,133 $ 8,735,755 $ 3,160,108 $ 3,772,132 $ 4,457,208 $ 5,219,145 $ 6,061,706 $ 6,988,604 $ 81,611 $ 86,494 $ 91,316 $ 96,077 $ 100,779 $ 105,422

$ 141,667 $ 150,000 $ 158,333 $ 166,667 $ 175,000 $ 183,333 $ 149,967 $ 159,133 $ 168,300 $ 177,467 $ 186,633 $ 195,800 $ 85,000 $ 90,000 $ 95,000 $ 100,000 $ 105,000 $ 110,000 $ 256,597 $ 273,601 $ 290,606 $ 307,610 $ 324,615 $ 341,619 $ 633,230 $ 672,735 $ 712,239 $ 751,743 $ 791,248 $ 830,752 $ 5,424,250 $ 6,096,984 $ 6,809,223 $ 7,560,967 $ 8,352,214 $ 9,182,967

Month 17 Month 18 Month 19 Month 20 Month 21 Month 22 $ (90,402) $ (60,711) $ (27,163) $ 10,194 $ 51,313 $ 96,146 $ (2,264,142) $ (2,324,853) $ (2,352,015) $ (2,341,821) $ (2,290,508) $ (2,194,362)

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

$(20,000)

$(15,000)

$(10,000)

$(5,000)

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

Net profit - New Sales Hire

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

Month 25

Month 27

Month 29

Month 31

Month 33

Month 35

$(200,000)

$(100,000)

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

Cumulative Net Profit - New Sales Hire

Page 63: SaaS Sales Force Economics : Excel Model

Month 17 Month 18 Month 19 Month 20 Month 21 Month 22100% 100% 100% 100% 100% 100%

$ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ (5,312.50) $ (5,312.50) $ (5,312.50) $ (5,312.50) $ (5,312.50) $ (5,312.50) $ 30,104 $ 30,104 $ 30,104 $ 30,104 $ 30,104 $ 30,104 $ 65,521 $ 65,521 $ 65,521 $ 65,521 $ 65,521 $ 65,521 $ 657,564 $ 723,084 $ 788,605 $ 854,126 $ 919,647 $ 985,168 $ 526,051 $ 578,468 $ 630,884 $ 683,301 $ 735,718 $ 788,134

Month 17 Month 18 Month 19 Month 20 Month 21 Month 22 $ 32,664 $ 32,664 $ 32,664 $ 32,664 $ 32,664 $ 32,664 $ 209,436 $ 242,100 $ 274,765 $ 307,429 $ 340,094 $ 372,758

Month 1

Month 4

Month 7

Month 10

Month 13

Month 16

Month 19

Month 22

$(200,000)

$(100,000)

$-

$100,000

$200,000

$300,000

$400,000

$500,000

Cumulative Cashflow comparision - monthly payments vs year in advance

Cumulative Net ProfitCumulative Net Cash Flows

Axis Title

Page 64: SaaS Sales Force Economics : Excel Model

Month 17 Month 18 Month 19 Month 20 Month 21 Month 22 $ 1,068,875 $ 1,139,708 $ 1,210,542 $ 1,281,375 $ 1,352,208 $ 1,423,042 $ 1,101,706 $ 1,183,165 $ 1,264,623 $ 1,346,081 $ 1,427,540 $ 1,508,998 $ 8,705,417 $ 9,888,581 $ 11,153,204 $ 12,499,285 $ 13,926,825 $ 15,435,823 $ 6,964,333 $ 7,910,865 $ 8,922,563 $ 9,999,428 $ 11,141,460 $ 12,348,658 $ 81,458 $ 81,458 $ 81,458 $ 81,458 $ 81,458 $ 81,458

Month 17 Month 18 Month 19 Month 20 Month 21 Month 22 $ 861,613 $ 926,779 $ 991,946 $ 1,057,113 $ 1,122,279 $ 1,187,446 $ 6,331,103 $ 7,238,130 $ 8,210,324 $ 9,247,685 $ 10,350,212 $ 11,517,906

Month 1

Month 6

Month 11

Month 16

Month 21

Month 26

Month 31

Month 36 $(5,000,000) $-

$5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000

Cumulative Cashflow comparision - monthly payments vs year in advance

Cumulative Net ProfitCumulative Net Cash Flows

Axis Title

Month 1

Month 4

Month 7

Month 10

Month 13

Month 16

Month 19

Month 22

$(200,000)

$(100,000)

$-

$100,000

$200,000

$300,000

$400,000

$500,000

Cumulative Cashflow comparision - monthly payments vs year in advance

Cumulative Net ProfitCumulative Net Cash Flows

Axis Title

Page 65: SaaS Sales Force Economics : Excel Model

Month 23 Month 24 Month 25 Month 26 Month 27 Month 28 $ 144,647 $ 196,770 $ 252,470 $ 311,702 $ 374,423 $ 440,587 $ 67,022 $ 108,399 $ 152,477 $ 199,187 $ 248,464 $ 300,244

Month 23 Month 24 Month 25 Month 26 Month 27 Month 28 $ (2,049,716) $ (1,852,946) $ (1,600,476) $ (1,288,773) $ (914,351) $ (473,764) $ (2,516,639) $ (2,408,240) $ (2,255,763) $ (2,056,575) $ (1,808,111) $ (1,507,867)

Page 66: SaaS Sales Force Economics : Excel Model

Month 23 Month 24 Month 25 Month 26 Month 27 Month 28100% 100% 100% 100% 100% 100%

$ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 52,711 $ 55,003 $ 57,267 $ 59,503 $ 61,710 $ 63,890 $ (658.89) $ (687.54) $ (715.84) $ (743.78) $ (771.38) $ (798.63) $ 55,003 $ 57,267 $ 59,503 $ 61,710 $ 63,890 $ 66,043 $ 634,315 $ 691,582 $ 751,085 $ 812,795 $ 876,686 $ 942,729 $ 507,452 $ 553,266 $ 600,868 $ 650,236 $ 701,348 $ 754,183

$ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 435,128 $ 454,881 $ 474,633 $ 494,385 $ 514,137 $ 533,889

Month 23 Month 24 Month 25 Month 26 Month 27 Month 28 $ 24,251 $ 26,062 $ 27,850 $ 29,616 $ 31,360 $ 33,082 $ 72,323 $ 98,385 $ 126,235 $ 155,851 $ 187,211 $ 220,294

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

Month 25

Month 27

Month 29

Month 31

Month 33

Month 35

$(200,000)

$(100,000)

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

Cumulative Net Profit - New Sales Hire

Page 67: SaaS Sales Force Economics : Excel Model

Month 23 Month 24 Month 25 Month 26 Month 27 Month 282 2 2 2 2 2

46 48 50 52 54 56 2,863 2,999 3,135 3,271 3,406 3,542

Month 23 Month 24 Month 25 Month 26 Month 27 Month 28 $ 1,493,875 $ 1,564,708 $ 1,635,542 $ 1,706,375 $ 1,777,208 $ 1,848,042 $ 1,268,629 $ 1,383,164 $ 1,502,170 $ 1,625,590 $ 1,753,371 $ 1,885,457 $ 10,004,385 $ 11,387,549 $ 12,889,718 $ 14,515,309 $ 16,268,680 $ 18,154,137 $ 8,003,508 $ 9,110,039 $ 10,311,775 $ 11,612,247 $ 13,014,944 $ 14,523,310 $ 110,007 $ 114,534 $ 119,006 $ 123,421 $ 127,781 $ 132,086

$ 191,667 $ 200,000 $ 208,333 $ 216,667 $ 225,000 $ 233,333 $ 204,967 $ 214,133 $ 223,300 $ 232,467 $ 241,633 $ 250,800 $ 115,000 $ 120,000 $ 125,000 $ 130,000 $ 135,000 $ 140,000 $ 358,623 $ 375,628 $ 392,632 $ 409,637 $ 426,641 $ 443,646 $ 870,257 $ 909,761 $ 949,266 $ 988,770 $ 1,028,274 $ 1,067,779 $ 10,053,223 $ 10,962,984 $ 11,912,250 $ 12,901,020 $ 13,929,294 $ 14,997,073

Month 23 Month 24 Month 25 Month 26 Month 27 Month 28 $ 144,647 $ 196,770 $ 252,470 $ 311,702 $ 374,423 $ 440,587 $ (2,049,716) $ (1,852,946) $ (1,600,476) $ (1,288,773) $ (914,351) $ (473,764)

Month 1

Month 3

Month 5

Month 7

Month 9

Month 11

Month 13

Month 15

Month 17

Month 19

Month 21

Month 23

Month 25

Month 27

Month 29

Month 31

Month 33

Month 35

$(200,000)

$(100,000)

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

Cumulative Net Profit - New Sales Hire

Page 68: SaaS Sales Force Economics : Excel Model

Month 23 Month 24 Month 25 Month 26 Month 27 Month 28100% 100% 100% 100% 100% 100%

$ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 38,427 $ 45,351 $ 55,285 $ 65,521 $ (5,312.50) $ (5,312.50) $ (5,764.06) $ (6,802.66) $ (8,292.81) $ (9,828.13) $ 30,104 $ 30,104 $ 32,663 $ 38,548 $ 46,993 $ 55,693 $ 65,521 $ 65,521 $ 68,080 $ 73,965 $ 82,409 $ 91,109 $ 1,050,689 $ 1,116,209 $ 1,184,289 $ 1,258,254 $ 1,340,663 $ 1,431,773 $ 840,551 $ 892,968 $ 947,431 $ 1,006,603 $ 1,072,531 $ 1,145,418

Month 23 Month 24 Month 25 Month 26 Month 27 Month 28 $ 32,664 $ 32,664 $ 34,712 $ 39,420 $ 46,175 $ 53,135 $ 405,422 $ 438,087 $ 472,798 $ 512,218 $ 558,394 $ 611,529

Page 69: SaaS Sales Force Economics : Excel Model

Month 23 Month 24 Month 25 Month 26 Month 27 Month 28 $ 1,493,875 $ 1,564,708 $ 1,635,542 $ 1,706,375 $ 1,777,208 $ 1,848,042 $ 1,590,456 $ 1,671,915 $ 1,753,532 $ 1,835,517 $ 1,918,027 $ 2,001,079 $ 17,026,279 $ 18,698,194 $ 20,451,726 $ 22,287,243 $ 24,205,269 $ 26,206,348 $ 13,621,023 $ 14,958,555 $ 16,361,381 $ 17,829,794 $ 19,364,215 $ 20,965,079 $ 81,458 $ 81,458 $ 81,618 $ 81,984 $ 82,510 $ 83,052

Month 23 Month 24 Month 25 Month 26 Month 27 Month 28 $ 1,252,613 $ 1,317,779 $ 1,383,074 $ 1,448,661 $ 1,514,669 $ 1,581,111 $ 12,750,767 $ 14,048,794 $ 15,412,115 $ 16,841,024 $ 18,335,941 $ 19,897,300

Page 70: SaaS Sales Force Economics : Excel Model

Month 29 Month 30 Month 31 Month 32 Month 33 Month 34 $ 510,153 $ 583,078 $ 659,320 $ 738,837 $ 821,588 $ 907,534 $ 354,464 $ 411,063 $ 469,982 $ 531,163 $ 594,548 $ 660,084

Month 29 Month 30 Month 31 Month 32 Month 33 Month 34 $ 36,390 $ 619,468 $ 1,278,787 $ 2,017,624 $ 2,839,212 $ 3,746,746 $ (1,153,402) $ (742,339) $ (272,357) $ 258,806 $ 853,354 $ 1,513,438

Page 71: SaaS Sales Force Economics : Excel Model

Month 29 Month 30 Month 31 Month 32 Month 33 Month 34100% 100% 100% 100% 100% 100%

$ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 2,951 $ 66,043 $ 68,169 $ 70,268 $ 72,341 $ 74,388 $ 76,410 $ (825.54) $ (852.11) $ (878.35) $ (904.27) $ (929.86) $ (955.12) $ 68,169 $ 70,268 $ 72,341 $ 74,388 $ 76,410 $ 78,406 $ 1,010,898 $ 1,081,166 $ 1,153,507 $ 1,227,896 $ 1,304,306 $ 1,382,712 $ 808,718 $ 864,933 $ 922,806 $ 982,317 $ 1,043,445 $ 1,106,170

$ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 4,583 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 8,502 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 19,752 $ 553,642 $ 573,394 $ 593,146 $ 612,898 $ 632,650 $ 652,403

Month 29 Month 30 Month 31 Month 32 Month 33 Month 34 $ 34,783 $ 36,462 $ 38,121 $ 39,759 $ 41,376 $ 42,973 $ 255,077 $ 291,539 $ 329,660 $ 369,418 $ 410,794 $ 453,767

Page 72: SaaS Sales Force Economics : Excel Model

Month 29 Month 30 Month 31 Month 32 Month 33 Month 342 2 2 2 2 2

58 60 62 64 66 68 3,678 3,814 3,949 4,085 4,221 4,357

Month 29 Month 30 Month 31 Month 32 Month 33 Month 34 $ 1,918,875 $ 1,989,708 $ 2,060,542 $ 2,131,375 $ 2,202,208 $ 2,273,042 $ 2,021,796 $ 2,162,332 $ 2,307,015 $ 2,455,792 $ 2,608,612 $ 2,765,424 $ 20,175,933 $ 22,338,265 $ 24,645,279 $ 27,101,071 $ 29,709,683 $ 32,475,107 $ 16,140,746 $ 17,870,612 $ 19,716,224 $ 21,680,857 $ 23,767,746 $ 25,980,085 $ 136,338 $ 140,537 $ 144,683 $ 148,777 $ 152,820 $ 156,812

$ 241,667 $ 250,000 $ 258,333 $ 266,667 $ 275,000 $ 283,333 $ 259,967 $ 269,133 $ 278,300 $ 287,467 $ 296,633 $ 305,800 $ 145,000 $ 150,000 $ 155,000 $ 160,000 $ 165,000 $ 170,000 $ 460,650 $ 477,654 $ 494,659 $ 511,663 $ 528,668 $ 545,672 $ 1,107,283 $ 1,146,788 $ 1,186,292 $ 1,225,797 $ 1,265,301 $ 1,304,805 $ 16,104,357 $ 17,251,144 $ 18,437,436 $ 19,663,233 $ 20,928,534 $ 22,233,339

Month 29 Month 30 Month 31 Month 32 Month 33 Month 34 $ 510,153 $ 583,078 $ 659,320 $ 738,837 $ 821,588 $ 907,534 $ 36,390 $ 619,468 $ 1,278,787 $ 2,017,624 $ 2,839,212 $ 3,746,746

Page 73: SaaS Sales Force Economics : Excel Model

Month 29 Month 30 Month 31 Month 32 Month 33 Month 34100% 100% 100% 100% 100% 100%

$ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 35,417 $ 65,521 $ 65,521 $ 65,521 $ 65,521 $ 65,521 $ 65,521 $ (9,828.13) $ (9,828.13) $ (9,828.13) $ (9,828.13) $ (9,828.13) $ (9,828.13) $ 55,693 $ 55,693 $ 55,693 $ 55,693 $ 55,693 $ 55,693 $ 91,109 $ 91,109 $ 91,109 $ 91,109 $ 91,109 $ 91,109 $ 1,522,882 $ 1,613,992 $ 1,705,101 $ 1,796,210 $ 1,887,320 $ 1,978,429 $ 1,218,306 $ 1,291,193 $ 1,364,081 $ 1,436,968 $ 1,509,856 $ 1,582,743

Month 29 Month 30 Month 31 Month 32 Month 33 Month 34 $ 53,135 $ 53,135 $ 53,135 $ 53,135 $ 53,135 $ 53,135 $ 664,664 $ 717,799 $ 770,935 $ 824,070 $ 877,205 $ 930,341

Page 74: SaaS Sales Force Economics : Excel Model

Month 29 Month 30 Month 31 Month 32 Month 33 Month 34 $ 1,918,875 $ 1,989,708 $ 2,060,542 $ 2,131,375 $ 2,202,208 $ 2,273,042 $ 2,084,131 $ 2,167,183 $ 2,250,235 $ 2,333,287 $ 2,416,339 $ 2,499,391 $ 28,290,479 $ 30,457,662 $ 32,707,897 $ 35,041,184 $ 37,457,524 $ 39,956,915 $ 22,632,383 $ 24,366,130 $ 26,166,318 $ 28,032,948 $ 29,966,019 $ 31,965,532 $ 83,052 $ 83,052 $ 83,052 $ 83,052 $ 83,052 $ 83,052

Month 29 Month 30 Month 31 Month 32 Month 33 Month 34 $ 1,647,553 $ 1,713,994 $ 1,780,436 $ 1,846,878 $ 1,913,319 $ 1,979,761 $ 21,525,100 $ 23,219,342 $ 24,980,026 $ 26,807,151 $ 28,700,718 $ 30,660,727

Page 75: SaaS Sales Force Economics : Excel Model

Month 35 Month 36 $ 996,634 $ 1,088,848 $ 727,715 $ 797,391

Month 35 Month 36 $ 4,743,380 $ 5,832,228 $ 2,241,153 $ 3,038,543

Page 76: SaaS Sales Force Economics : Excel Model

Month 35 Month 36100% 100%

$ 35,417 $ 35,417 $ 2,951 $ 2,951 $ 78,406 $ 80,378 $ (980.08) $ (1,004.72) $ 80,378 $ 82,324 $ 1,463,090 $ 1,545,414 $ 1,170,472 $ 1,236,331

$ 4,167 $ 4,167 $ 4,583 $ 4,583 $ 2,500 $ 2,500 $ 8,502 $ 8,502 $ 19,752 $ 19,752 $ 672,155 $ 691,907

Month 35 Month 36 $ 44,550 $ 46,107 $ 498,317 $ 544,424

Page 77: SaaS Sales Force Economics : Excel Model

Month 35 Month 362 2

70 72 4,492 4,628

Month 35 Month 36 $ 2,343,875 $ 2,414,708 $ 2,926,179 $ 3,090,828 $ 35,401,286 $ 38,492,114 $ 28,321,029 $ 30,793,691 $ 160,755 $ 164,648

$ 291,667 $ 300,000 $ 314,967 $ 324,133 $ 175,000 $ 180,000 $ 562,676 $ 579,681 $ 1,344,310 $ 1,383,814 $ 23,577,649 $ 24,961,463

Month 35 Month 36 $ 996,634 $ 1,088,848 $ 4,743,380 $ 5,832,228

Page 78: SaaS Sales Force Economics : Excel Model

Month 35 Month 36100% 100%

$ 35,417 $ 35,417 $ 65,521 $ 65,521 $ (9,828.13) $ (9,828.13) $ 55,693 $ 55,693 $ 91,109 $ 91,109 $ 2,069,538 $ 2,160,648 $ 1,655,631 $ 1,728,518

Month 35 Month 36 $ 53,135 $ 53,135 $ 983,476 $ 1,036,611

Page 79: SaaS Sales Force Economics : Excel Model

Month 35 Month 36 $ 2,343,875 $ 2,414,708 $ 2,582,443 $ 2,665,496 $ 42,539,359 $ 45,204,854 $ 34,031,487 $ 36,163,883 $ 83,052 $ 83,052

Month 35 Month 36 $ 2,046,203 $ 2,112,644 $ 32,687,177 $ 34,780,069