Subscription

Model Summary

Subscription revenue is realized when a user agrees to sign up for periodic recurring payments in order to access a specified level of service or functionality. Subscription payments will continue to occur monthly for each user until the user upgrades / downgrades or leaves your service through churn.

Launch Date

The month you plan to make this source of revenue available to customers.

Waiting List at Launch

The number of users that have shown interest in your service by signing up for a waiting list prior to the launch of the subscription.

Waiting List Conversion

The % of people signed up for the waiting list that also sign up for your service once it launches.

Free Trial Period

The total number of days that new signups can use your service without having to commit to a paid subscription. If you have a free subscription plan it may be best to input the assumptions for that account type in the “Plan” section and set the price of the plan (ARPA) to zero. The “Free Trial Period” field will add a delay between the user signing up and when they actually convert to any plan.

# of Days to get Paid

The number of days between the day a subscription is paid and the day the money is available in your bank account.

http://www.investopedia.com/terms/d/dso.asp

Transaction Fees

Transaction fees as a % of total revenue from this subscription (if none enter zero). 

Projection Basis

Select the method you would like to use as the foundation for forecasting revenue in this subscription plan. 

Selecting “Customer Acquisition” will use your customers from the “Customers” page as the basis for forecasting revenue. Selecting “Target Sales” will enable you to forecast revenue by setting specific revenue goals for each year.

Customers at Launch

The number of customers signed up and paying for this subscription plan the first month this subscription is launched.

Conversion to Plan #

The % of signups (from the “Customers” page) that convert to a paid customer for this plan.

Conversion from Older Signups

The % of previously unconverted signups that convert to a paid customer.

Conversion Optimization (per Mo.)

The monthly % increase in the conversion rate for paid subscriptions to this plan.

Duration of Optimization (Mos.)

The total number of months that conversion rate optimization takes place. After this period the conversion rate for paid subscriptions will remain flat.

Av. Revenue per Account (ARPA)

The average revenue, or amount charged, per paid subscription for this plan.

ARPA Increase per Month

The % monthly increase, if any, in the average amount charged per paid subscription for this plan.

Churn (per Month)

The % of paid subscribers that cancel their subscription each month and are no longer paying customers.

Upsold to Next Plan

The % of paid subscribers from this plan that upgrade to the next level of paid subscription (if applicable). Subscriptions are in ascending order starting from the top (meaning the lowest plan is at the top).

Downgrade to Previous Plan

The % of paid subscribers from this plan that downgrade to the paid subscription below the current plan (if applicable). Subscriptions are in ascending order starting from the top (meaning the lowest plan is at the top).

Enterprise Customers Beginning Month 1

The total number of paying customers in the beginning of the first month this plan launches.

MRR Target for Months 1-12 ($)

The desired level of Monthly Recurring Revenue you would like to achieve by month 12 (starting from the launch date of this subscription).

MRR Target for Months 13-24 ($)

The desired level of Monthly Recurring Revenue you would like to achieve by month 24 (starting from the launch date of this subscription).

MRR Target for Months 25-36 ($)

The desired level of Monthly Recurring Revenue you would like to achieve by month 36 (starting from the launch date of this subscription).

ACV of Existing Customers ($)

The average annualized (12-month) currency value of a contract for existing customers signed up for this plan.

http://blog.saasmetrics.co/arr-vs-acv-vs-tcv/

ACV of New Customers ($)

The average annualized (12-month) currency value of a contract for new customers that sign up for this plan.

Av. Renewals per Month (% of Customers)

The average % of your subscription base for this plan that are up for renewal in any given month.

ACV Increase Upon Renewal

The average % increase in the Annual Contract Value (ACV) when a customer renews their subscription.

Churn Rate per Year

The % of customers that cancel their paid subscription each year, and do not purchase any other subscription.

Downgraded to Previous Plan

The % of paid subscribers from this plan that downgrade to the paid subscription below the current plan (if applicable).