Financial Models

This Excel template is a sensitivity analysis designed to help direct advertising campaigns or affiliate marketing organizations/persons. The user enters a few assumptions about their expected spend on ads (based on cost per click logic) and the expected resulting traffic and sales from that spend. Sensitivity tables populate based on those conversions at different click volumes. Break-even cost per click is also displayed.

The model has two tabs. The first one is for direct marketing campaigns i.e. this is if you were a company that wants to drive more traffic to your website, of which you are selling products. This is not an affiliate site that has a website which refers users to another website in order for purchases to happen and in return for a commission (that will be the 2nd tab of this workbook). Instead, the first tab lets you figure out what your expected gross profit on ad spend will be at various click volumes (shows up to 17 variations on a monthly basis and broken down into a per day basis). The table is made up of the following columns: Sales, Clicks, Average Earnings per Sale, Total Earnings, CPC Cost, Profit, Clicks/Day, ROI, RoC, Profit/Day. The second tab is for affiliate marketers and has a few more logical pieces in order to determine expected conversion from traffic and commissions earned from sales. Other than that, the output sensitivity table is the same and the break-even cost per click will also be displayed. A final 12-month budget is populated based on gross revenue / ad spend and OpEx in order to get an idea of operating income through the lens of revenue directly from advertising. Two visualizations are included as well.