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Territory Setup

Channel Mix CAC Model

Google Search
$26.67 CAC
35%
Meta Ads
$36.28 CAC
25%
TikTok Organic
$8.75 CAC
15%
Local SEO
$13.33 CAC
20%
Referrals
$10.00 CAC
5%
Blended CAC
$22.45
Market size modifier
×1.0 (Mid Metro)
Adjusted CAC
$22.45

Order Economics

Revenue ≠ profit. This calculates true ROI on territory fee.

Demand Model Market Sizing

Territory Fee

$6,000
Full: $12,000

Initial Ad Budget

$3,000
50% of fee

IR Margin (Territory)

$3,000
50% of fee

Initial Campaign (from territory fee)

Adjusted CAC

$22.45
blended + market

Est. Orders

133
from initial ads

Your Revenue

$32,000
133 × $300 × 80%

Your Profit

$12,800
40% margin

Profit ROI

2.1x
actual profit vs territory fee

Revenue ROI

5.3x
revenue (not profit)

Payback Period

~4 months
based on profit

Annual Market Potential

Territory Population
150,000
Annual Demand (0.25%)
375 jobs
IR Addressable (42%)
158 jobs

Annual Market Demand

375
coating jobs/year

IR Addressable

158
jobs via platform

Annual Revenue Potential

$37,920
at 80% × $300 AOV

Annual Profit Potential

$15,168
at 40% margin

Per-Order Revenue Split

$300 order
$240
$42
$18
You Keep (80%)
IR Margin (14%)
Ongoing Ads (6%)

Monthly Projections (Ongoing)

10 orders/mo

$2,400
$960 profit

20 orders/mo

$4,800
$1,920 profit

IR per 20 orders

$840
platform margin

Ad fund per 20

$360
for more ads

Full Breakdown

Territory population 150,000
Rate per person $0.08
Full territory price $12,000
Your discount 50%
You pay $6,000
To initial ad campaign $3,000
To Iron Rainbow margin $3,000
Blended CAC $22.45
Market modifier ×1.0
Adjusted CAC $22.45
Est. orders from campaign 133
Your gross revenue $40,000
Your net (after platform fee) $32,000
Your profit margin 40%
Your actual profit $12,800
Revenue ROI (gross) 5.3x
Profit ROI (real return) 2.1x
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