How realistic is this plan?

by theknowingness. Posted on Sep 11, 2020    0    6


New SaaS I launched is finally doing great! Had some hiccups but it’s finally working.

So I have this like “master plan”, & I’m not sure if I can’t see through my bullshit or if it’s actually realistic.

I have a list of 5,000 prospects, qualified & everything. I’ve hired two sales reps that have been cold calling customers (SMBs) with a good conversion rate (~30%).

If my reps can get through that list in, let’s say 3-4 months, with my current conversion rate, plus all the extra features I’ve been building, is it safe to assume I’ll gain an extra MRR of +$75,000 within the next few months?

Average Revenue Per User: ~$50/mo Conversion Rate: ~30% Subscriber Churn Rate: 5%

30% conversion out of 5000 is 1500, so 1500 • $50 = $75,000 right?

What can go wrong here? Seems too good to be true, but if possible then awesome.

I appreciate your input!


Comments

mondaysbest

Nice! What’s the niche?

Fleon007us 1

Forget cold calls...research PPC. Your list will eventually be exhausted. What then?

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PPC will get you in front of a new audience. Are you a B2B or a B2C? Lots of options?

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PPC changed our business.

doer49 1

and what with customer churn?

btw, leave a link to your saas

  theknowingness 1

5% for customer churn rate

tazer1222 3

The key assumption here is, obviously, the conversion rate so we just need to identify how realistic the 30% rate is on a go forward.

Questions I’d have: (1) was the 30% rate achieved with a big enough sample size? If it was less than 100 prospects, I’d say you should expect some deviation from the rate.
(2) are the prospects that were part of the initial sales efforts (where you realized a 30% conversion rate) apples to apples to this next bunch of prospects. Sales programs typically start hot because they tend to sell to the easiest opportunities first.

I’d apply a 5-10% discount to your expectations (even if your answers to the above questions confirm the rate) just for the sake of being conservative should anything happen (you lose a rep, issue with your new products, churn, etc.)

  theknowingness 1

Appreciate the feedback!

The sample size for the conversion rate was for around 960 cold calls I believe, we got 310 conversions from those. That aside from referrals

All of them completely cold with no prior connection.

& I do agree with you on the conservative expectation just to be on the safe side