In this modern era, more and more activities are getting digital. With all these innovations, there’s no wonder almost everything that we do and use is paid monthly. While more press has been given to Software as a Service (SaaS) industries, these subscriptions are just around the corner, from music and movies, don’t be surprised that later our basic needs will also come in a monthly subscription. This article will attempt to elaborate forecasting template for SaaS business.
Defining SaaS Terminologies to build Subscription Forecast Before you were able to forecast revenue and customer growth, you should initially understand these definitions.
Calculating Revenue from Subscription Services
Building a Forecast Since you already have the basic knowledge of terminologies is SaaS industry, we will now build a sales forecasting template for a monthly subscription. Here is how it should look like. This model is quite simple and assumes that it operates in a simple monthly subscription without any one time set up fees. Based on this model, you can adjust your ARPU level; some customers might upgrade for a high-priced subscription offered. Feel free to play with the figures to fit your terms. Conclusion: Forecasting Template allows you to predict your desired revenue In general, forecasting allows businesses to predict their target revenue or profit, thus making an effort to achieve what has been forecasted. Though it may be changed or altered depending on the situations, this drives the company to meet and exceed this forecast, which can be beneficial to the company and its workers.
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January 2021
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