Invest in profitable projects

Gain insights into how much you can expect to earn on top of your marketing and operational expenses by consistently tracking both LTV and CAC.

Allocate resources correctly

A company always has limited resources and they should be spent with the highest ROI.

The first step is to understand what the highest ROI means. It might be difficult to answer, especially when we dive deeper into precise and detailed calculations for projects and take into account the timeframe.

Everyone aims to have a profit and reach a high income. However, if there is a choice between spending $100 thousand per month and earning $150 thousand in a half year or spending $1 million per month and earning $1.2 million per year, what would you choose? The choice strongly depends on your financial, human resources, and marketing knowledge, as well as on your willingness to work with users for at least a year in order to profit from them.

Get a forecast of your income for each monetization

Most commonly, it all starts with P&L statement. You can build P&L statement in a few clicks with Mad Curve and check how your users pay, taking into account different monetization types. You will also get a forecast of your income for each monetization (in-app, advertising, subscription). Having built several P&L statements, you will understand what your project is capable of and will be able to understand your financial resources, possible payback period and your highest ROI.

P&L Statement In-app (UA) Gross

Get insights on how much revenue your business can generate

One of the most important parts of P&L statement is the dynamics of cohort-calendar LTV. It helps you to understand how much revenue you can get from your users. All large companies have been working with users for years and constantly monitor the dynamics of payments. Most development studios, at the initial stage, concentrate on the first days of the user’s journey. However, it is more important to monitor the user's behavior in the second and third months.

P&L Statement LTV Dynamics

For example, take a look at the LTV of paying users of different projects with the in-app monetization. Which of these projects has more potential of bringing profit for years and has a better chance of becoming top-grossing?

LTV Calculator Curves

If we talk about the top-grossing games, they are able to bring more than 40% of income in the second month from the first month of the lifetime of the calendar cohort.

Forecast your revenue in a few clicks

It is important to define user acquisition cost or cost per unique paying users. It all depends on your main monetization strategy- if we talk about in-app or subscriptions, it makes sense to take into account unique paying users, or if your main monetization is ads then we consider all users.

When you add the cost per paying user to your paying user LTV, you will be able to understand the payback period and a profit summary within a specific timeframe. Next, correlate it with your P&L statement and you will be able to understand how much you will earn, taking into account all your expenses for employees, office equipment, etc.

As a result, we come to one simple idea - you need to always control your LTV and CAC to understand how much you can earn on top of your expenses, both marketing and company. In our tools, you can do this in a few clicks using a P&L statement, marketing report, LTV calculator, and target metrics calculator.

When working with forecasts, it is important to keep in mind that the revenue prediction is based on actual data. None of the predictive models can take into account factors such as your future app content, monetization events, live ops, or support quality. Your team should know how to manage and operate a product in the long run to achieve your payback period.