💨 5-minute exercise to gauge an integrations revenue potential

Discover how to quickly assess the financial impact of your next integration.

Hey friends 👋🏿,

In today’s issue, let’s dive into the nuts and bolts of sizing up the potential earnings from a new integration.

Say you've greenlit an integration build; naturally, you're looking at what return on investment (ROI) it might reel in (btw, this is the full approach I typically use when choosing between different integration opportunities). The following formula helps you zero in on how to forecast integration-related revenue.

The formula at a glance

Now let’s break it down:

1. Total Customers:

Think of this as the entire market pool available on the platform you're linking up with. Take Webflow’s 3.5 million or Bubble’s 3 million customers, for example. It's your broadest target audience.

2. Estimated Conversion Rate (%Conversion):

We’d all love a 100% conversion, but that's more a dream than a reality.

This figure is your ballpark guess for the slice of users who’ll embrace your integration.

Looking at overlap with tools like Crossbeam, or comparing with similar integration downloads, can offer some insights here.

3. Percentage of Paying Users (%Paid):

Among those who adopt your integration, not everyone will pay. But multiplying the total potential customers by your estimated conversion rate and this percentage will net you the likely paid user base.

4. Average Monthly Recurring Revenue (MRR):

Then, multiply the monthly earnings you anticipate from each paying user to arrive at the full estimated revenue opportunity.

Voilà! That's a wrap on projecting the revenue opportunity of your integration. It's more of an art than an exact science, but it certainly shines a light on the value of your investment in developing and upkeeping an integration, especially when it's resource-intensive.

What metrics do you rely on to decide your integration priorities? Drop us a line – I’m all ears!

Lola