The ULTIMATE MarTech Financial Model | SaaS Financial Model Tutorial

We build a MarTech financial model in Excel for a startup scaling from $0 to $3.5 million ARR in its first three years. Free template included.
✅ Download the Excel template: bit.ly/martech...
🚀 If you want to learn which finance frameworks the top 1% of founders use to scale their startups to massive outcomes, have a look at this ⇒ www.ericandrew...
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Related Startup Videos:
🚩The Ultimate SaaS Unit Economics Tutorial: • The Ultimate SaaS Unit...
🚩 Finance for SaaS | Playlist • Finance for SaaS Startups
🚩 Building a SaaS Financial Model | Scaling to $1 billion: • SaaS Financial Model T...
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We learn how to build a startup financial model for a marketing technology company. You can download the MarTech financial model template for free in the resources section.
MarTech companies are usually a type of SaaS startup - so they have very sticky customers and sky-high gross margins.
Examples of MarTech companies could include email / SMS platforms, affiliate marketing platforms, influencer marketplaces, landing page builders, link-building/SEO tools, and more - and they often focus on a single sector.
MarTech is one of my favorite sectors of the startup ecosystem because they are building into a massive end market. The market is huge for the following reasons:
► There are an incredible number of industries that still do not leverage digital marketing very well in the acquisition & retention of their customers.
► Businesses that get a positive ROI on marketing will spend a lot.
► Many of the giant paid ads platforms are prohibitively expensive, difficult to use, and don't convert very well (especially post-iOS 14).
In this video, I build a financial model for a MarTech startup scaling from a single product to a platform of products over its first 3 years.
Sections:
0:23 what is MarTech? And advice on scaling from a product to a platform.
1:59 overview of our MarTech startup financial model
4:34 forecasting pricing & cross-selling
8:22 customer acquisition, marketing assumptions, CAC, paid vs. organic conversions
19:06 churn & total active customers for all product lines
24:02 calculating total subscription revenue using pricing & active customers
26:20 explanation of ARR (annual recurring revenue) - what is included vs. not included
27:34 forecasting COGS for a subscription startup
34:22 calculating the gross margin for our martech startup (plus typical GM range for SaaS businesses)
35:25 modeling MarTech operating expenses (my easy payroll forecasting method)
44:48 calculating operating income, burn rate, and runway
By the end of this video, you will know how to build a financial model for marketing technology startups - I guarantee it!
#martech #saasfinancialmodel #startups

[@eric_andrews]

Questions? Let me know in the comments happy to discuss.
💡 Also, if you want to learn which finance frameworks the top 1% of founders use to scale their startups to massive outcomes, check out my free webinar ⇒ www.ericandrewsstartups.com/financeforstartups

[@asadyousafzai2904]

Thanks, Eric, this might not be a relevant question, however, what do you think how much would you charge a client for such kind of a financial model?

[@eric_andrews]

Happy to answer it. Usually a custom model would be a bit more detailed and would take 10 or up to 20 hours to get all the specific details (usually would have 3 or so meetings to review, make changes, etc). Would end up being a few thousand generally

[@khalidbukhari8784]

Thank you Eric!! This is amazing!!
Can you also do a detailed video on the Marketing Strategy model for any startup/business?

[@eric_andrews]

You're welcome! I think it depends a lot on the business model & price point, but I have a marketing playlist you can check out here: ua-cam.com/play/PLdoBuNNnCmdXiKjTn5LIA8UAPu2kgCT5n.html

[@daly-media4258]

Hi Eric - I've messaged/emailed you on multiple platforms - when will your next cohort launch?

[@eric_andrews]

Hey - my apologies on the delay I've been getting married/on my honeymoon so have been offline. Registration is going to re-open in 3-4 weeks. If you are on my email list I will be sending out info at the end of March.

[@daly-media4258]

@@eric_andrews Wow Congrats! No worries - enjoy yourself! That's perfect thank you so so much. What videos of yours would you suggest I start watching (sort of like pre-reading?)

[@eric_andrews]

@@daly-media4258 Thanks! I would prepare by studying the 3-statement financial model (ua-cam.com/video/xlXDZyZ9azk/v-deo.html), and then you can start looking at unit economics (ua-cam.com/video/AMKgcBzK7cg/v-deo.html) and cohort analysis (ua-cam.com/video/OwCATJh4lNg/v-deo.html) and top 10 startup metrics (ua-cam.com/video/tuXILsUljKc/v-deo.html) and I think that will be a great way get prepared...some of this we will cover in the program as well of course but the more up-to-speed you are the deeper we can go on the case studies, etc.

[@daly-media4258]

@@eric_andrews Perfecttt! Thank you so much Eric, I'll be ready by late March :) Speak then!

[@eric_andrews]

@@daly-media4258 can't wait to meet you!

[@binodgurung7168]

Thank you Eric!...

[@eric_andrews]

You are very welcome!!!

[@hilmy7822]

many thanks!!!

[@eric_andrews]

You're welcome!