Focus on clients with budgets of $500k a month or more in HIGH PROFIT / HIGH GROWTH industries.

We need 1 new keyword sponsor at $400k a month to meet business objectives!

BUSINESS ASSUMPTIONS-for new sales projections


To reach a billion-dollar valuation, let’s first establish the gross profit per $400,000/month contract with a 28% gross margin:

Gross Profit = $400,000 \times 0.28 = $112,000 \text{ per month}

Gross Profit per year = $112,000 \times 12 = $1,344,000 \text{ per year}

Since contracts renew at a 95% rate, the geometric series formula can be used to find the sum of this infinite series for each contract, assuming the contracts keep renewing indefinitely:

S = \frac{a_1}{1 – r} = \frac{1,344,000}{1 – 0.95} = \frac{1,344,000}{0.05} = $26,880,000 \text{ per contract}

Now, to reach a billion-dollar valuation, the number of such contracts needed would be:

1,000,000,00026,880,000≈37 contracts26,880,0001,000,000,000​≈37 contracts

You would need approximately 37 of these $400,000/month contracts, each renewing indefinitely at a 95% rate, to achieve a billion-dollar valuation.

To reach this target over 5 years (or 60 months), you would need to acquire these 37 contracts evenly. However, each new contract will also contribute to the valuation from the moment it is acquired, considering the 95% renewal rate.

Here’s a simplified goal-setting chart by quarter, under the assumption that you start in Q1 2024:

QuarterNew Contracts to AcquireCumulative Contracts
Q1 202422
Q2 202424
Q3 202426
Q4 202428
Q1 2025210
Q2 2025212
Q3 2025214
Q4 2025216
Q1 2026218
Q2 2026220
Q3 2026222
Q4 2026224
Q1 2027226
Q2 2027228
Q3 2027230
Q4 2027232
Q1 2028234
Q2 2028337

By Q2 2028, you would reach the 37 contracts needed for a billion-dollar valuation. Note that this is a simplified model and doesn’t account for factors like time value of money, operational expenses, or cost of capital.