Hoe does it work?

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:

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.