Question
Morty's Original Business - Morty is a mortgage broker that provides a service, helping borrowers secure a mortgage loan from a lender. - Every loan
Morty's Original Business - Morty is a mortgage broker that provides a service, helping borrowers secure a mortgage loan from a lender. - Every loan that is secured is called a "closed loan", and Morty earns revenue and incurs cost-of-goods sold only for closed loans - Morty earns a commission for every loan it closes (on average $4,000/close) 4000 per closed loan - Morty's original business acquires most customers through lead generation and pays $15/lead, on average (Acquisition Costs) - Our direct loan expenses include a) cost of reports ($100/loan) b) origination team payroll (~$80k per person, per year) - Morty has 60 employees total, including the origination team's 20 employees. (assume no new hires) - Morty's annual software expenses are $75k/year and other general expenses are $325k/year. - In Q4'22, Morty purchased 50,000 new customer leads that resulted in 500 closed loans. $(750,000.00) $2,000,000.00 - Morty expect grow the # of leads by 10% Quarter-over-Quarter (QoQ) and to improve conversion to ~2% by the end of 2023. [Conversion as the # of leads that result in a closed loan]
Q4'22 | Q1'23 | Q2'23 | Q3'23 | Q4'23 | |
Morty's Original Business | |||||
Leads / Acquisition | 50,000 | 0 | 0 | 0 | 0 |
Cost Per Lead | $15 | ||||
# of Closed Loans | 500 | - | - | - | - |
Total Acquisition Cost | |||||
COGS | |||||
Reports | |||||
Total Origination Team Salary | |||||
Other Expenses | |||||
Payroll (Original Business) | |||||
G&A |
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