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:
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:
- Select the revenue from the dropdown menu
- Select Average Days Given
- For each froecast year, enter the volume of hours delivered and volume of hours delivered per month
- 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