Doing financial or other KPI modeling can be really illuminating. At minimum, it can help you verify your assumptions about market size and opportunity. For in

Doing financial or other KPI modeling can be really illuminating. At minimum, it can help you verify your assumptions about market size and opportunity. For instance, check out this great article from the founders of snaptalent: http://jamiequint.com/lesson-one-know-your-market http://jamiequint.com/lesson-one-know-your-market "I think we are going to pass on SnapTalent. I like the guy and the concept, but the model we put together just doesn’t play out the way we would like it to. I’ve attached it here, and you can see that if we assume $5k cost per hire, we get to a very reasonable $2.50 eCPM. But I don’t believe $5K is the right number. I believe it is somewhere between $75 (what Craigslist charges) and, say, $2K. At the high end, that leads to an eCPM of $1 which is not going to get over the bar of most publishers. As the low end, the eCPM and the CPC converge....way bad ;) I’m sure we screwed something up and you are going to make a ton on this deal, and I thank you for giving us time to look at it, but it is not going to work for us right now."