B. ROI Payment Projection Example

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• B-ROI-and-Payment-Projection-Example
• B-ROI-Payment-Projection-Example

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• B-ROI-and-Payment-Projection-Example

Assumptions (editable):

• Monthly revenue (Apr→Mar): 42,580 · 33,050 · 51,472 · 18,329 · 20,592 · 33,139 · 36,253 · 22,696 · 19,924 · 19,208 · 69,567 · 25,440
• Seasonal retainer: $1,000\times clamp(Rev÷AnnualAvg,0.75,1.25)\to \ast \ast$750–$1,250**
• Rev share: 3% (example; final % depends on monthly KPI score; cap 5%)
• Tools: $150/mo pass-through
• Time savings value: first 3 months = 10 hrs/week, then 20 hrs/week once stabilized
• Rate for savings calc: $85/hr (entry-level virtual C-Suite)
• Bonus on savings: 15%, true-up quarterly

Monthly Projection (fees)

Reading the table

• Fee excl Bonus = Retainer + Rev Share + Tools (billed monthly).
• Bonus = 15% of measured savings; we true-up quarterly using time-tracking & invoices.
• Rev share adjusts monthly by KPI score (1%/3%/5% ladder; 5% cap).

What the client gets back (quick ROI view)

• **Time savings value (year): ~ $77,291\ast \ast (10\to 20hrs/wkat$85/hr).
  • Client keeps ~85% of that; the 15% bonus (~$11,594) is paid only when realized and verified.
• Total annual fees incl bonus: ~$36,573
• ROI on time savings alone: ~2.1× (excludes any lift from added leads, faster collections, fewer errors, etc.)

Lead-lift upside (framework):
With 1,700 new leads added + outbound, the revenue upside depends on your conversion and average gross profit per job:

Added Gross Profit ≈ Leads × Close Rate × Avg Gross Profit per Job
Example knobs to try:
  - Close Rate: 1–5% (cold outbound construction range)
  - Avg Gross Profit / Job: $2,500 – $7,500 (adjust to your book)

We’ll plug in your actuals and attribute uplift in the quarterly true-up.

Quarterly Audit & True-Up (how it works)

1. Lock a baseline (trailing 3 months before engagement) for revenue, hours, chargebacks/waivers, and tool spend.
2. Track weekly: dashboards, time entries, revenue, and savings events with evidence.
3. Quarterly true-up:
   • Recompute KPI score → final rev-share% (never above 5% cap)
   • Compute verified savings → 15% bonus
   • Reconcile any provisional vs actuals (+/– credit or charge)

This keeps incentives aligned and fees right-sized to results.

Notes & Options

• Want a fixed weekly setup? Use $230/week retainer + % rev-share + quarterly bonus as above.
• If monthly revenue is highly volatile, we can use quarterly averaging for the seasonality factor to smooth the retainer. title: “B. ROI & Payment Projection (Example)” date: 2025-08-11 summary: A concrete example of monthly totals, weekly smoothing, and quarterly true-ups. tags: [investment, payments, roi, pricing, example] publish: true enableToc: true aliases: [“ROI and Payment Projection Example”]

Note

This page shows how the math works and a readable schedule. For live numbers, we maintain a spreadsheet with formulas and true-up inputs each quarter.

Inputs (you can tweak)

• Base Retainer: $1,000 / month
• Seasonality clamp: 0.75× to 1.25×
• Tools: $150 / month
• Revenue Share (baseline): 3% of monthly revenue
• Revenue Share (stretch view): 5% (for planning comparison)
• Bonus (budgeted): 15% × Estimated Annual Savings, allocated by seasonality

Formulas (plain English)

• Seasonal weight for a month = month revenue ÷ annual revenue.
• Retainer per month = BaseRetainer × CLAMP( month revenue ÷ avg revenue, 0.75, 1.25 ).
• Monthly baseline total = Retainer + Tools + (3% × month revenue) + (BonusPool × seasonal weight).
• Weekly baseline = Monthly baseline ÷ 4.333 (approx weeks/month).
• Quarterly true-up = (Actuals − Plan) over the last 3 months.
  Spread across future months by seasonal weight, then divided by weeks to add/subtract on each weekly payment.

Example schedule (illustrative)

Replace Forecast Revenue with your plan. The totals update per formulas above.

*Retainer is clamped between $750 and $1,250 per month.

Tip

If you want a stretch column at 5% revenue share for comparison, duplicate the table and use 5% × Forecast Revenue in that column.

Quarterly true-up example

• Inputs: Q1 actual revenue, tools receipts, realized savings, KPI results.
• Delta computed: Quarter Delta = Actual − Plan.
• Spread: Allocate delta across future months by seasonal weight.
• Weekly effect: AdjWeekly = (Delta_for_month ÷ 4.333) added to each week in that month.

How we keep it fair

• Busy months carry more of any delta, slow months carry less.
• Weekly smoothing avoids spikes.
• We re-plan every quarter over an 18-month window so agreements stay aligned with results.

Next steps

• Want us to load your latest plan here and publish the live numbers?
  Ping us and we’ll sync the spreadsheet → site view for you.
• Back to terms: A-Investment-Payment-Terms