Cost of Sales and Marketing Model: Calculate the Cost of Doing Business

Abstract

Startup companies have two primary cost drivers: sales/marketing and product development. The cost of sales and marketing is the cost the company incurs to implement its sales and marketing strategy. A financial model, in and of itself, cannot define or articulate strategies for selling and marketing of products and services. It can, however, model the application of resources to the implementation of these strategies. The Cost of Sales and Marketing (COSM) model quantifies and forecasts amounts and timing of resources applied to the implementation of the company’s sales and marketing strategy.