ARR generated by source

What’s this and how does it benefit your business?

Annual recurring revenue (ARR) is the expected revenue from your recurring subscriptions over a one-year period. Simply put, if you have sold 2,000 yearly subscriptions at $100 each, your ARR is $200,000.

This template breaks down your ARR by the various sources that bring in new subscribers to your site: social media, ad platforms, referral links, cold emails… This way, you can learn which sources perform better. You’ll be able to organize your investment in a smarter way by investing more in the top-performing sources and less in the worst-performing ones. 

For each source, you can see key metrics like the total number of leads and opportunities, the percentage of deals won, the average ARR for each deal, and so on. These metrics help you evaluate your success on the various platforms in a smart way. 

For example, if you have a low number of leads from Facebook Ads, you may be tempted to ditch the platform. But then you see in the report that the percentage of deals won is pretty high. This means that you’ve done a good job with your communication. And the audience of your ads, even if limited, is right for you. Are you still sure you want to stop purchasing ads from Facebook?

When you consider all the metrics, you’re looking at the whole picture, not just one detail. Luckily, this template makes it easy for you by automatically gathering all data from all platforms. 

One of the metrics you can monitor with this template is the average number of days needed to close a deal. You can see this value for all your sources. But why should you care?

They often say that sales are a marathon, not a sprint. Still, an overly lengthy sales process can mean that something is wrong. Maybe the leads you get from that source are not qualified enough. If the source is an ad platform, you might want to switch platforms to see if you can find a better audience.