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Why is my revenue model not generating a revenue forecast?

tl;dr, Check your acquisitions and conversions.

A common question from users is some variation of:

Why isn’t the Revenue Model sheet generating any actual revenue figures given my revenue assumptions?

The reason is usually very simple: to generate revenue figures, you have to input your assumptions regarding prices and revenues and forecast acquisitions and conversions. Usually, people have input their pricing assumptions, but haven’t used the acquisition or conversion assumptions, thus there aren’t any units (e.g. users, customers, subscribers, clients) flowing in to generate revenues. In a generalized manner, calculating revenues per time period can be simplified to:

Revenues = Units per period * Price per unit per period

For example,

Subscription revenues = # of active subscribers that month * monthly subscription price

Transaction revenues = # of orders * average order value

When it comes to the revenue forecast in the Foresight models, if you are not seeing any revenues show up in your forecast, usually you have input the prices but there aren’t any units flowing through to generate revenues. If you’re experiencing this, first look at the Forecast sheet, and check to see if you’re generating any acquisitions. Then look at the conversion percentage assumptions on Get Started and the detailed forecasts of users, customers, subscribers etc. on Forecast to see if you are seeing any converted sales flowing through.

Full details on the default revenue model ›

Questions, ask anytime ›