The Revenue Model · free
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Most revenue plans answer every problem with "hire more reps."

This one works backward from your target to the headcount it actually requires — then shows you how many of those hires you don't need. Built from the operating system behind a decade of multi-route growth — direct, partner, distribution and enterprise.

About three minutes. Nothing is stored.
Four motionsDirect, partner-led, distribution and enterprise — each with its own economics.
Eight leversEvery one a system you can build instead of a person you have to hire.
One scoreNot how ambitious your plan is. How likely it is to actually happen.
STEP ONE

Which motion are you modelling?

Each one has different economics. Picking one loads sensible starting numbers you can overwrite.

STEP TWO

Where you are today

Five numbers. If you don't know one exactly, estimate — the shape of the answer holds.

On the revenue you book, after cost of goods.
1 for one-off. Higher for reorders or subscriptions.
Revenue per ramped rep
The number everything else hangs on
Transactions per rep
Orders per year, at your deal size
Customers per rep
Opportunities per rep
To win that many customers

Revenue per rep is an average, and averages hide distributions. On most teams a third of the reps carry well over half the number. Adding headcount at your average assumes the next hires perform like the middle of your team rather than the bottom — and that the top of it stays. If your spread is wide, the levers below are a safer bet than the hires above.

STEP THREE

Where you're going

TO HIT THE TARGET YOU NEED
VERSUS THE DEFAULT PLAN
HIRING COST AVOIDED
Per year, fully loaded
PLAN SCORE
THE DEFAULT ANSWER

Hire your way there

If nothing about how you sell changes, this is the arithmetic. It's the plan most companies take to the board, and it's the most expensive way to close a gap.

Additional reps required
On top of the team you have
Annual cost of those hires
Fully loaded, at steady state
They must be hired by
To be ramped in time

STEP FOUR

Or move the levers instead

Every slider below is a system you can change without adding a person. Watch the headcount number at the top of the screen fall as you move them.

STEP FIVE

Or add a motion entirely

Optimising one route to market changes your slope. Adding a second changes your level.

It is the only thing that produces a step change rather than an incremental one.

It is also slower, harder, and most attempts fail. A new motion contributes almost nothing for the first two or three quarters — which is exactly why it has to be started before you need it, not when the number demands it.

What the partner or distributor takes. Zero if you sell it yourself.
Contribution, after route margin
Direct reps it replaces
Net of the reps it needs itself
Cost of waiting to start

Solid: what the new motion contributes month by month at your chosen start. Dashed: what it would have contributed if you started today.

⚠ Distribution is not the same shape as the other three

It is a reach motion, not a growth motion. You inherit the distributor’s growth rate, sell-in is not sell-through so you cannot see end-user demand, and you have no relationship with the buyer to expand or defend. And the margin you trade for the reach is the margin that would have funded the demand engine — which is why healthy distributor relationships so often sit flat for years.

Ask both gates, not one. Will they actually sell it? — a distributor earning a one-time margin opens a door; one earning a recurring stream sells. And can you grow through them alone? — after the route margin above, are there discretionary points left to fund anything?

REALITY CHECK

Is the plan physically possible?

Productivity targets are easy to write down. This is what yours demands of a single rep, every working day, for a year. Note that levers behave differently here — winning more of what you already work, or raising deal size, costs no extra effort. Shortening cycles or raising output does. That difference is usually the whole argument.

Where does your pipeline come from?

Two engines with completely different constraints. Bought pipeline is limited by budget; prospected pipeline is limited by hours. Most companies run both, and the mix decides which wall you hit first.

Paid ads, inbound, content, events
Cold calls, emails, in-person visits, list work
PARTNER, REFERRAL & REPEAT
10%
Costs neither budget nor rep hours

The bought half

Leads required
Across the whole team, per year
Marketing spend required
Cost per won deal

The prospected half

What counts as what

Every company defines these differently. What matters is that your conversion rates above use the same definitions as these — if you count meetings as opportunities, your rates need to say so.

Activity
One attempt. A dial, an email, a social touch, a site visit or walk-in. Counted per attempt, not per person — three dials to the same prospect is three activities.
Contact worked
A distinct company or prospect you actively worked — dialled, emailed, sequenced or visited. Not necessarily reached. One contact however many attempts it took, so "50 net-new companies a week" is 50 contacts worked, not 50 conversations.
Meeting
A scheduled call that actually happened — an SQL in most CRMs. Booked-but-no-showed does not count, and that's the number most teams flatter themselves with.
Opportunity
Qualified and in the pipeline — an SQO. A real business problem, a known decision process, an agreed next step. Not everyone who took a meeting.
Self-sourced
Opportunities the rep created themselves. The rest arrive from marketing, partners, referrals or repeat business and cost the rep no prospecting effort.

This counts prospecting only. Servicing existing customers — chasing reorders, quoting, shepherding a deal through a partner's own sales cycle — is real work and none of it appears above. In a repeat-purchase business that is most of a rep's day, which is exactly why prospecting is the first thing a reactive week eats. Read the daily figure as the protected block you need to defend, not the total workload.

If your team is split by role, this is a blended average. An SDR sustains far more daily volume than a quota-carrying AE. A rep farming existing accounts often carries two or three times the revenue of one hunting new ones, while prospecting almost none of it. Count every selling head in your rep number and read the activity row as the team's load — then set the rep-sourced share to reflect how much of your pipeline the hunters actually create.

THE SCORE

How likely is this to actually happen?

Anyone can set an ambitious target. This scores whether the plan behind it survives contact with a real year — sustainable workload, credible assumptions, leverage that isn't just headcount, and enough runway to execute.

Plan score gauge

THE OTHER HALF

Can you afford the plan?

Every number above is revenue. Revenue is only half a plan — a target you hit by giving away margin is a target that costs you next year.

A discount does not come out of margin. It comes out of R&D.

Your operating costs are fixed and your profit number is committed to somebody. So a concession lands almost entirely on the only bucket that flexes — the one that funds the next product, the next hire you actually wanted, the next process improvement. The company does not look less profitable that year. It looks the same, and it stops improving.

Gross profit added
What the plan costs
New reps, fully loaded, plus bought pipeline
Left over

This is deliberately a floor, not a forecast. It counts only the selling cost the plan adds and the pipeline it buys — not the rest of your operating base, which the growth will also stretch. If the number here is thin, the real one is thinner.

STEP SIX

Your plan

THE PLAN
PLAN SCORE
SELLING TEAM
REVENUE PER REP
HIRING COST AVOIDED
SECOND MOTION
MARKETING SPEND
DAILY ACTIVITY
Per rep, per working day
GROSS PROFIT ADDED
rev-op.com
Before you hire against this

This plan assumes your current forecast is trustworthy. If you have not landed within about 5% of your number for two or three consecutive quarters, fix that first. One good quarter is a sample of one — it is indistinguishable from a lucky mix, and headcount added against an unreliable forecast is the most expensive way to find that out.

You just entered one gross margin for a business that runs on four

That is the honest limit of a free tool. This model runs one route at a time, one margin, one horizon, one average rep — and it still found something worth knowing. Your actual business is a portfolio: routes with different margins, different cycle lengths and different ramp curves, running at once and competing for the same people.

The full model runs them side by side. Named reps with individual quotas and ramp dates. Each route carrying its own economics, including what the channel takes. Quarterly phasing instead of a single horizon. Saved scenarios you can put next to each other. And comp modelled against the output, so the plan and the pay plan are the same document.

Nothing above gets taken away. This calculator stays free, keeps every number it already gives you, and stays the honest version of the argument — that most revenue plans answer every problem with a hire, and most of those hires are a system nobody built.

Part of the Revenue Operating System.