Originally published: 16/03/2018 16:30
Publication number: ELQ-19436-1
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Modelling Revenue- Spark Financial Model

Showing the link between volume modeled, the use of multiple product lines, and revenue in the Spark Financial Model.

This video looks at linking customer volumes forecasted to actual sales of products or services. It will show examples for both a product that has a one off payment, as well as a product with a recurring payment such as a subscription type arrangement.

Starting off with a one off payment example, e.g. coffee sold. This product can be linked with the number of coffee cart customers that were entered in the last video (Modelling Volume), and set the revenue type as 'one off.' Now for a coffee cart business, like a lot of other businesses, it'll be selling a variety of products with different prices. You probably don't want to be modelling out each of these products, rather, a more practical way of modelling it would be to group the products into it's natural categories. To determine which categories to use, ask yourself, how do the products differ from a cost and supply chain perspective?

This example is used to take you through the rest of the revenue modelling process in a step by step way, using a screen-sharing method which makes it extremely easy to follow.

If you'd like to purchase the model, you can do so here:

Length: 3 minutes 5 seconds

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