Mortys 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). 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. 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]

Partnership Opportunity - White Label

The Partner wants to "White Label" Morty's price comparison tool on its platform (use Morty's tool under its own brand name) and in turn will share a percentage of each closed loan commission with Morty. The Partner estimates that it will close 15 loans in the first quarter of operations and grow 50% each quarter after. Morty would need to allocate 25% a Project Manager's time to manage this partnership (the Project Manager is not on the origination team). Assume partnership begins in Q123

Expense Assumptions

Cost Per Lead $15

Cost of Reports (per loan) $100

Origination Salary $80K

Non-Origination Team Salaries $110k

Projection Manager Time 0.25

Please fill in the remaining of the Expense chart from Q4'22 to Q4'23 and cost of the white label partnership for the those quarters

Expenses
	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
White Label Partnership
Payroll (White Label)	$ -