Digital Product Marketplace Model

The digital product marketplace model prepares a financial plan in Excel for online marketplace Startup businesses similar to concepts such as Themeforest or CodeCanyon. The model template allows you to build detailed bottom-up monthly projections of traffic, users, vendors, orders, listed products, revenues, costs, profits and cash flows and aggregate those figures in a comprehensive yearly financial plan which then can be used to fine-tune the strategy of the business plan or to present a case to investors for fundraising purposes. The Excel model template comes in three model versions (BASIC, PRO AND PREMIUM) and is fully editable.

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The digital product marketplace model prepares a financial plan in Excel for online marketplace Startup businesses similar to concepts such as Themeforest or CodeCanyon. The model template allows you to build detailed bottom-up monthly projections of traffic, users, vendors, orders, listed products, revenues, costs, profits, cash flows, KPIs and aggregate those figures in a comprehensive yearly financial plan which then can be used to fine-tune the strategy of the business plan or to present a case to investors for fundraising purposes. The Excel model template comes in three model versions (BASIC, PRO and PREMIUM) and is fully editable.

 

A walkthrough/overview of this financial model template is provided below:

 

The model template contains the following worksheets:

  • Title Sheet
  • Executive Summary
  • Monthly Financial
  • Yearly Financials
  • Lifetime Value (only Pro and Premium Version)
  • Break-Even Analysis (only Pro and Premium Version)
  • Abbreviations
  • Instructions

 

The elements and highlights of this financial model template are the following:

  • Executive Summary sheet with graphs, KPIs, Project Metrics and assumptions:
    • Financial Summaries
    • Breakdown of Revenues and Gross Profit
    • Breakdown of Product Revenues by Re-Orders and New-Orders
    • KPIs and Assumptions related to the forecast of Traffic (Unique Visitors), Conversion Factors, Re-Order Rates, Orders, Users, Vendors (Registered and Active), Product Listings
    • Various charts
    • Project Metrics including Funding required, Profit, Proceeds, Investment Multiple IRR, NPV, Payback, Time to Break-Even
    • Analysis for different types of cash flows: Unlevered, levered, without reserve, adjustment for time of funding
    • Estimation of exit value by using different valuation multiples
    • Uses and Sources of Funds Table
    • Paid Marketing Campaigns: Estimation of paid traffic based on cost per clicks and conversion factors and calculation of cost per user/vendor acquisition
    • General Assumptions where you can set the currency and first forecast year of the model. In case you also sell products via App, you can define the estimated % share of sales via your own website and App stores. as well as set other general assumptions
    • Only PRO and PREMIUM Model Version:
      • Pre-and Post-Money Valuation
      • Shareholding Structure by Investor (who injects how much of the funding required in exchange for how much of the equity stake?)
      • Investment Metrics by Investor
      • Sensitivity Tables for Key Value Drivers and Tornado Diagram

 

  • Monthly Sheet: Detailed monthly forecast for a period of 5-Years (BASIC and PRO model version) respective 10-Years (PREMIUM model version) covering
    • Unique visitors from organic and paid traffic as well as traffic received from returning customers
    • Orders (separated in re-orders and new orders)
    • Users (total, new and existing users)
    • Vendors (registered and active vendors)
    • Product listings
    • Calculation of all direct costs such as fees payable to App Stores (in case products are not sold
    • Calculations of additional incomes from affiliate links and ad incomes
    • FTE forecast
    • OPEX forecast
    • P&L, Balance Sheet and Cash Flow Statement
    • Monthly Free Cash Flow calculation
    • Calculation of time required to break-even at EBITDA level
    • Calculation of Payback period

 

  • Yearly Sheet covering a period of 5-Years (BASIC and PRO model version) respective 10-Years (PREMIUM model version):
    • P&L, Balance Sheet and Cash Flow Statement
    • P&L as % of Revenues
    • Calculation of yearly KPIs such as Unique Visitors, Orders, Users, Vendors, Listed Products)
    • Projected Financial Ratios
    • Debt Schedule
    • Fixed Asset Schedule
    • Intangible Asset Schedule
    • Projected Enterprise and Equity Value by Year
    • Calculation of Free Cash Flows and Project Metrics (Funding required, Profit, Proceed, Multiple, IRR) for the following cash flows:
      • Unlevered Cash Flows
      • Levered Cash Flows
      • Levered Cash Flows including cash reserve
      • Levered Cash Flows including cash reserve but the timing of cash flows adjusted
    • Only PRO and PREMIUM Model Version:
      • Calculation of Investor-specific cash flows and returns

 

  • Lifetime Value Analysis (Only PRO and PREMIUM Model Version)
    • Calculation of User Lifetime Value at Gross Profit level including revenues from product sales, affiliate income and advertisement

 

  • Break-Even Analysis (Only PRO and PREMIUM Model Version)
    • Analysis to estimate how many users are required to sign-up so that the digital product marketplace can achieve break-even at EBITDA level

 

  • Abbreviations sheet including the major terms used in this model
  • Instructions sheet providing additional instructions on how to use this model

 

This Excel financial model template can be used mainly for Startup Businesses but also for existing digital product marketplace websites. The model template can offer a valuable tool to fine-tune and optimize the business plan of your online marketplace business, offer additional insights into your business model by running various financial scenarios aimed to identify unused potentials to enhance the financial value creation and business strategy. The Excel model also offers the required framework to present investors with a convincing case for fundraising.

 

The Excel model template does not contain macros, and is provided in three different model versions:

  • BASIC: Fully Editable 5-Year Excel Model version which DOES NOT INCLUDE: 1) Sensitivity Analysis, 2) User Lifetime Value Analysis, 3) Break-Even Analysis (with respect to the required number of users to achieve break-even) and 4) calculation of Investor-specific cash flows and returns.
  • PRO: Fully Editable 5 Year Excel Model Template with all features
  • PREMIUM: Fully Editable 10-Year Excel Model Template with all features

 

Download File Formats:

.pdf (Demo Versions) – Open with Adobe Acrobat

.xlsx (Fully editable Excel File) – Open with MS Excel

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