Some financial models may cause business extinction.

One dimensional financial models regarding marketing should consider the following:

✔️Average CPA in your industry - include seasonal changes and each platform you are marketing on.

✔️Competitive Behavior - We all share the same population. If there are new competitors arising I would factor in 1-5 years how this may impact your CPA over time.

✔️If you are part of a small group of businesses that are disruptive you will see greater results at first. Over the next 5 years how will you evolve or handle new innovations that other startups are developing?

✔️The framework in which your data should be collected should factor in various types of marketing initiatives from the base, potential disruptions, and more.

Everything will not remain the same...

If the average CPA is $23, with a value of $1400/lead. Your goal is to earn $490K in revenue, but your budget is only $5000; you would actually need to consider a budget of at least $8050+.

Also, just because you capture a lead doesn’t mean you will close them. You would need an additional layer to factor in a close ratio.

If your close ratio is at about 40% you would have to increase your budget based on these statistics.