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Time based / project revenue

Inputing your revenue for when you charge by time
MV
Written by Max Valentine
Updated 8 months ago

Some revenue are time based - especially professional services companies - where they charge a going rate per hour or by day. 

Examples of this revenue model include book keepers, accountancy firms, legal professionals, consultants or freelancers

The calculation is similar to selling a product - the unit price x volume

Let's look at a freelancer example an example:

A freelancer has just completed his first month working for a client where they have worked on average 3 days a week at a daily rate of £300.  This means that the revenue for the month is:

12 (days) x 300 (daily rate) = £3,600

Had the hourly rate been higher or the freelancer had worked for more days then the revenue would have been higher.  So these are two key drivers - volume of time units and unit cost.

Now let's look at building time based revenue in Numberslides:

  1. Select the revenue from the dropdown menu
  2. Select Average Days Given
  3. For each froecast year, enter the volume of hours delivered and volume of hours delivered per month
  4. You can then repeat this for other timed based revenue streams.  An intersting way to do this would be to build the revenue through hours and hourly rate by seniority
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