Revenue growth modeling with Opstarts

We’ve added a number of new features to help model the many different ways companies grow their revenues involving various links between their expenses, products, and sales. Here’s a quick review of the capabilities in Opstarts. We’ll do some followup posts on ways to use these to model various different revenue models.

  • Lead generation – A common way to drive sales is by generating leads from expenses such as online ads, marketing, etc. Simply select the product to generate leads for from this expense, how much each lead costs, and the stage of the funnel associated with the leads generated. For example, you could have marketing campaigns that drive people to visit the website, a campaign targeted at getting people to sign up for trials, or a discount link to drive leads to an immediate purchase. We’ll show you how much revenue is generated by that expense based on the conversion funnel percentages in the linked product(s). Another lead generation option is from employees such as inside sales reps generating leads or field sales people generating sales. Just enter the number of leads or sales generated by the employee and we’ll show you the revenue generated by that employee each month based on your conversion funnel percentages in the linked product(s).
  • Upgrade/downgrade – Any two products can be linked together with upgrade/downgrade links. Just enter in what percentage of users switch from one version to another version each month and we’ll model everything from there. This makes it very easy to model a freemium model or a model with different tiers of subscription levels where users can graduate from a lower cost entry-level version or expand their usage levels.
  • Linked product sales – Sales of a product can also be driven by users of any other product. This is a great way to model things like add-on purchases (where users/subscribers are given the option to purchase additional services, credits, etc) and in-app marketing (where some percentage of users buy additional products).
  • Linked expenses –  Costs associated with each product or subscription sold can be modeled with linked expenses. For example, if you have a cost of materials or shipping cost associated with each product sold, or a hosting cost added for each new subscriber. This is a great way to see how much models like freemium will actually cost you over time in hosting, support and impact costs and compare them to different models such as limited-time free trials.

We’ve also updated the Growth analysis screen to give you an easy way to analyze how each individual product is growing and identify the key factors impacting its growth. The top half shows all the inputs/outputs associated with product growth over the time period selected with the date selector. The bottom half shows the leads coming into the sales funnel for that product from various sources and how they convert into new sales. We’ll be expanding the analytics here with additional key metrics for each product.

Please let us know if you have questions about how to model your specific business model in Opstarts and if there are other links or analytics you’d like us to enable. Thanks!

Sign up for the Opstarts alpha program here


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