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free Forecast marketing and conversion metrics for an ecommerce business using paid, organic, and viral digital marketing efforts. A component of the Standard and all industry-focused models, available on its own for free, in partnership with TradeGecko.

Understanding how digital marketing channels perform and lead to sales is a critical component to ecommerce. We created this template to help you think about and track the performance of your digital marketing channels. The model helps you forecast marketing and conversion metrics for an ecommerce business using multiple paid, organic, andviral digital marketing channels.

This is released in partnership with TradeGecko, who has released a full how-to guide to the model, a guide to digital marketing channels, and key KPIs and metrics for measuring ecommerce success.

For a full Ecommerce model that takes this further and also models customers, orders, revenues, cost of goods sold, inventories, full financial statements, cap table, and valuation, use the Ecommerce Financial Model.

  • Ecommerce entrepreneurs at any stage who are thinking about different advertising and acquisition channels and want to analyze how the spend and performance of different channels converts into sales.
  • For a full model including sales, revenues, inventory, operating expenses, consolidated three sheet financial statements, cap table, valuation and more, use the Ecommerce Financial Model.
  1. README. Overview of the model, how it is structured, how inputs are used, how to get support and help.
  2. Get Started. Key inputs that allows you to set the base forecast for the digital marketing channels built into the model, including three paid channels, two organic channels, and one viral channel. Also allows you to set the terminology used throughout the model to define the terms for what the acquisitions and conversions are called, so that the terms used in the model can instantly fit your business.
  3. Acquisitions. The core of the model. Full details of the performance of each channel, using the assumptions from the Get Started sheet, but can also be overwritten to model out any particular month-by-month predicted changes (i.e. seasonality, partnerships, product releases, etc.). Forecasts spend, traffic, and conversions by channel, and aggregates all channels to show overall performance metrics. Model is built monthly for 61 months and aggregated quarterly and annually.
  4. Key Reports. Charts of sales by channel, revenues, and customer acquisition cost (CAC).

I created the financial models behind Foresight so early-stage entrepreneurs can spend less time on finance and more time on their products. I built this tool because I’ve worked with many ecommerce companies on forecasting their sales, revenues, costs and inventory needs, and wanted to provide a solid beginning point to help them think about how marketing and advertising converts to sales. I’ve been building and helping entrepreneurs build financial models for startups since 1998. More about my story here.

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Learn Financial Modeling

In 5 free lessons I share what I’ve learned from helping more than 23,000 early-stage entrepreneurs from over 116 countries learn financial modeling.