Overdue invoices for an SMB, $200,000 outstanding
400 overdue invoices of $500 each. An agent paid a share of the money recovered, with no outcome-priced offer for the first contact.
- Monthly bill
- $9,000
- Cost per invoice recovered
- $75
- Cost per invoice paid
- $75
- Cost per $1 of value
- $0.15
Calculation
| Step | Price | In | Rate | Out | Cost | Share |
|---|---|---|---|---|---|---|
| Reaching debtors and arranging payment Your own data, then payment arranged | Gap: no outcome-priced offer | 400 | 40% | 160 | n/a | n/a |
| Sample Collections Agent Payment arranged, then invoice recovered | 15% of value Estimate | 160 | 75% Study source pending | 120 | $9,000 | 100% |
Not in the total, because unknown. Sample Collections Agent: platform fees.
Your own steps after that
| Step | Conversion | Volume | Cost per event |
|---|---|---|---|
| Invoice paid | 100% | 120 | $75 |
Value at the end of the funnel: $60,000 a month.
Gaps
- No outcome-priced offer delivers payment arranged. Nearest fixed-price option: Accounts receivable reminder software on a fixed plan, cost unknown and not in the total.
If things change
| Scenario | Monthly bill | Per outcome | Per $1 of value |
|---|---|---|---|
| As entered | $9,000 | $75 | $0.15 |
| Success rate down 20% | $5,760 | $75 | $0.15 |
| Volume ×3 | $27,000 | $75 | $0.15 |
| Minimum kicks in No offer in this stack has a minimum | n/a | n/a | n/a |
Assumptions
- Average invoice is $500, so 400 invoices are $200,000 overdue.
- 40% of debtors agree to pay and 75% of those pay, for 30% recovered overall.