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software revenue formula
by
smacnew
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Revenue Formula for Software Sales
Percent
Impact
Variable
Unit
Amount
Increase
of Increase
Methods and Costs to Impact
Sales reps
1
10
10.00%
$1,040,000
Hiring more reps at $250K target expense
Opportunities per rep
1
40
10.00%
$1,040,000
Marketing, qualification process, partners
Close rate
%
20%
10.00%
$1,040,000
Strong sales processes, marketing, technical resources
Number of licenses
1
10
10.00%
$1,040,000
Strong sales processes, marketing, qualification
Average List Price
$
$20,000
10.00%
$1,040,000
Marketing, qualification
Net Price (after discount)
%
65%
10.00%
$1,040,000
Discount controls, strong sales processes, marketing, qualification
Total revenue
$
$10,400,000
Revenue per Sales Rep
$
$1,040.00
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