- TotalAvailableMarket (TAM) is the total market demand for your product of service.
- Target Market is the share of the TAM that you expect to fulfill.
- ConversionRate is the % of the Target Market that you expect to become a lead
- LAC : should equal what it cost you to acquire a lead
- SalesMarketingBudget : should equal how much you have available to spend on customer acquisition
- Price : should equal how much you charge the average customer
The model uses two methods:1. Determine # of leads in multiply % of total market size by desired conversion rate (to use this calculation method, set the variable [UseLAC?] = 0)2. Determine # of leads by dividing the total sales budget by the cost required to get a lead. (to use this calculation method, set variable [UseLAC?] = 1)