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

Please fill in the P&L chart

Profit & Loss
Combined - 2023
	Q1'23	Q2'23	Q3'23	Q4'23
Income
Broker Commission
Partnership Commission
Total Income	$ -	$ -	$ -	$ -
Operating Expenses
Acquisition Costs
Reports
Payroll
G+A
Total Expenses	$ -	$ -	$ -	$ -
Net Income	$0	$0	$0	$0