The Rule of 78 in sales is a mathematical shortcut used to forecast total annual revenue or set monthly quotas for subscription and monthly recurring revenue (MRR) businesses. The number 78 comes from the sum of the months in a year (12 + 11 + 10 + ... + 1 = 78), representing how early-year sales compound over the course of 12 months.
How the Formula Works
To find annual revenue: Multiply the new recurring revenue you add each month by 78.
Example: If you bring in $5,000 in new monthly subscriptions (every month) multiply $5,000 × 78 to get $390,000 in total collected revenue for the year.
To set monthly quotas: Divide your total target annual revenue by 78.
Example: If you need $100,000 in new annual business, divide $100,000 / 78 to find a monthly target of about $1,282 in new MRR.
And there is this: a STRATUSstaff POD (team of 3) would cost $30,960 for the year. That is three people working 8 hours a day, 5 days a week, 4.3 weeks in a month, for 12 months.
If you deposit $30,960 at a 10% annual interest rate compounded quarterly, your balance will grow to $34,174.05 after 1 year. And good luck finding 10% these days.
OK, $30,960 divided into four quarters: your 'payroll' would be $7,740 every 90 days. If you hired a STRATUSstaff.com POD to use tools like HubSpot, and Adobe and Zoom (and so on...) to GROW your business, to sell your products and services - if they only made $1,000 in new MRR, over the course of the year that would be......
Example: If you bring in $5,000 in new monthly subscriptions (every month) multiply $5,000 × 78 to get $390,000 in total collected revenue for the year.
To set monthly quotas: Divide your total target annual revenue by 78.
Example: If you need $100,000 in new annual business, divide $100,000 / 78 to find a monthly target of about $1,282 in new MRR.
And there is this: a STRATUSstaff POD (team of 3) would cost $30,960 for the year. That is three people working 8 hours a day, 5 days a week, 4.3 weeks in a month, for 12 months.
If you deposit $30,960 at a 10% annual interest rate compounded quarterly, your balance will grow to $34,174.05 after 1 year. And good luck finding 10% these days.
OK, $30,960 divided into four quarters: your 'payroll' would be $7,740 every 90 days. If you hired a STRATUSstaff.com POD to use tools like HubSpot, and Adobe and Zoom (and so on...) to GROW your business, to sell your products and services - if they only made $1,000 in new MRR, over the course of the year that would be......
$78,000 total collected revenue for the year.
And this is if your STRATUSstaff POD only landed one new $1,000 per month client, every month. I'm not a math major but I think $78,000 is more than $34,174.50. I like being conservative.
The 'math' is accurate. It seems impossible, but STRATUSstaff PODS are owners. They are (also) enjoying revenue share and fractional ownership of every project they work on. They do better when their clients do better. Over time, the POD LEADERS (also) can become fractional owners of STRATUSstaff.com. Employee (POD) Owned and Operated.
The 'math' is accurate. It seems impossible, but STRATUSstaff PODS are owners. They are (also) enjoying revenue share and fractional ownership of every project they work on. They do better when their clients do better. Over time, the POD LEADERS (also) can become fractional owners of STRATUSstaff.com. Employee (POD) Owned and Operated.
Maybe you hate math a little less now, right?
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