Marketplace with Subscription Option - 5 Year Financial Model

 This template combines the best logic of a subscription business and a marketplace business. You are getting high flexibility with this financial model. The main purpose is to create a comprehensive forecast for a business that runs a marketplace and has an option for up to 3 subscription tiers. You can use this independently as well if you just have a subscription business or just have a marketplace business by zeroing out the assumptions for whichever component you don't want to use.

$175.00 USD

After purchase, the model will be immediately available to download. It is also included in the SaaS financial models bundle.

marketplace with subscription model

To build this forecasting tool, I took inspiration from this marketplace model and this enterprise SaaS model.

Output Reports:

  • Monthly and Annual Financial Statements (Income Statement, Balance Sheet, Statement of Cash Flows) - they are all connected and adjust as the assumptions are changed.
  • DCF Analysis - Project View, Outside Investor View, Inside Investor View
  • Annual Executive Summary
  • Monthly and Annual Detail (granular view of all components of EBITDA/Cash Flow)
  • Cap Table
  • Visualizations for key metrics and financials
  • Best-in-practice retention for subscribers and marketplace non-subscribers.
  • Independent configurations for up to 3 subscription tiers (option for varying contract length, pricing, ad spend / conversions, organic traffic, annual % increase in contracts at renewal, retention rate at end of term.
  • Option to collect cash up front or amortize it over the life of a contract period (for subscription configurations with contract lengths longer than 1 month)
  • Independent configurations for marketplace and assumptions for users that move from non-subscribers to subscribers each month.
  • Separate assumptions for non-subscribers and subscribers in the marketplace (how much they transact per month, transaction values, and fee rates.
  • Monthly ad spend, traffic from ads, traffic from organic, conversion to the marketplace, and % of that traffic converting directly to subscribers.
  • Key metric calculations (shown in visuals): CaC, LTV, LTV:CAC Ratio, months to pay back CaC
The model assumes that all subscribers are part of the marketplace itself. Their retention is based on how long they are a subscriber for. Non-subscribing marketplace customers have their own retention assumptions for their average lifespan. If you want to define dynamic retention curves, simply go to the validation tab and hard code in the percentage of customers remaining at each renewal period in their lifespan. This would be if you know you have exponential decay rather than straight-line average depletion of a given cohort.

I strongly suggest following along with the video when you go to fill out the template. I go through each assumption starting from scratch so you can see exactly how to use this financial model without any errors and understand how everything fits together.

Benefits of Adding a Subscription Option to Your Marketplace Business

  • Predictable revenue: A subscription model provides a predictable revenue stream, as customers are charged on a recurring basis. This can help with financial planning and make it easier to forecast revenue.
  • Increased customer loyalty: By offering a subscription service, you can encourage customers to make a longer-term commitment to your marketplace. This can increase customer loyalty and reduce customer churn.
  • Improved customer experience: Subscription services can provide a better customer experience by simplifying the purchasing process and providing a more convenient way for customers to access your products or services.
  • Lower marketing costs: With a subscription service, you may be able to reduce your marketing costs as you can focus on retaining existing customers rather than acquiring new ones.
  • Upselling opportunities: Once customers are subscribed to your service, you can offer additional products or services to them at a discounted rate. This can increase revenue per customer and help to grow your business.
  • Increased lifetime value: A subscription service can increase the lifetime value of a customer, as they are more likely to continue purchasing from your marketplace over an extended period of time.