EE gate estimate

1. ENTREPRENEURSHIP 103
LTV Worksheet
Inputs to the Worksheet
One-Time Charge
100.00%
100-62.5=37.5%
per week or per month
10 to 50 %
per click or impression based advertisers,freelancers
percentage of income after completing their tasks.
60.00%
50.00%
46.00%
45.00%
45.00%
After first year:
After second year:
After third year:
After fourth year:
After fifth year:
What is the life time of the product before a customer has to repurchase the product?
What percentage of customers will repurchase?
What will your recurring revenue streams be?
What is your profit margin on your recurring revenue streams?
What is your retention rate for your recurring revenue streams?
What will your one-time charge be for each customer (e.g. initial purchase price of produ
What is your estimated profit margin on your one-time charges?
O e-Ti e Charge – Margi al Productio Cost
Charge = Profit Margin
For example, if your one-time charge
make that one unit of product is $2
20)/100=80%.
A general estimate is fine for now. D

2. __will be investigated in future________________________________________________
__________________________________________________________________________________
Calculations to Estimate the LTV
Input t = 0 (Today) t = 1 (1 year)
A. One-time revenue amount $16,000.00 $23,000.00
B. One-time revenue profit margin (%) 37.50% 22.00%
C. One-time revenue profit (row A * B) $6,000.00 $5,060.00
D. Recurring revenue amount $5,000.00 $10,000.00
E. Recurring revenue profit margin (%) 0.00% 50.00%
F. Recurring revenue profit (row D * E) 0 $5,000.00
G. Other revenue amount n/a at this stage
H. Other revenue profit margin (%) n/a at this stage
I. Other revenue profit (row G * H) n/a at this stage
J. Sum of profits for time period $6,000.00 $5,060.00K. Default cost of capital factor: Discount factor for
NPV (at 50% per year and assuming units of time =
years) 1 0.67
L. NPV of each item (row J * K) $6k $335K
M. Sum of all NPVs (sum of all cells in row L)
What other revenue sources will you have? What will your profit margin be, and is ther
applicable to them?

3. Free for users
(students,freela
ncers)
$25
subscription
fee monthly
for
companies(t
alent
seekers)
$50 to$300
for
advertisers
based on
their product
or service
ct?
roduct)?
argi al Productio Cost / O e-Ti e
charge is $100 and the cost to
is $20, your profit margin is (100-
ow. Don't ad more precision than

4. _____________________________________________________________
_____________________________________________
t = 2 (2 years) t = 3 (3 years) t = 4 (4 years) t = 5 (5 years)
$88,000.00 $450,000.00 $750,000.00 $1M+
80.00% 80.00% 80.00% 95.00%
$70,400.00 $360,000.00 $600,000.00 $.95M +
$20,000.00 $100k $500K $1M+
75.00% 90.00% 96.00% 98.00%
$15,000.00 $90k $483k $.98M
$85,400.00 $450K $1M+ $1.98M+
0.44 0.3 0.2 0.13
$37.576k $135K $.2M+ $.25M+
there a yearly retention ate
$.6M+

5. per click or
impression
based.
$500 to
$1000
monthly
subscription
fee for
unlimited
advertisers
and other
actions
based on
their product
or service.