video1.0<iframe src="https://www.loom.com/embed/71d44255cbd847afbb7e2de18069967a" frameborder="0" width="1920" height="1440" webkitallowfullscreen mozallowfullscreen allowfullscreen></iframe>14401920Loomhttps://www.loom.com14401920https://cdn.loom.com/sessions/thumbnails/71d44255cbd847afbb7e2de18069967a-6b5f9066f1024067.gif577.527In this video, I walk you through David Skok's SaaS Economics forecasting template, focusing on modeling a single salesperson's performance and the associated costs. We assume a base salary of $50,000 with an additional $55,000 in variable compensation, and a half-million dollar annual quota with a 2.5% monthly churn rate. By the end of the first year, our salesperson could generate approximately $28,697 in monthly recurring revenue, leading to a net profit of $486,000 over three years. I also highlight the significant cash flow differences between monthly and annual payment models for SaaS companies. Please refer to our blog post for all the assumptions used in this model.