Income Drivers in Magnifi | Easy Setup and Use

Income Drivers - Setup and Use

Purpose

This article explains how to set up and use Income Drivers in Magnifi. Income Drivers let you project income in a detailed, driver-based way (e.g. sales or client demand) instead of simply typing in a monthly value.

When to Use

Use Income Drivers when you want to:

  • Project income using drivers such as units, $/unit, and conversion rates

  • Analyse income in more detail through What-if Analysis

  • Replace manual entry with a structured, driver-based approach

Income Drivers are optional. You can always enter values directly into the Profit and Loss Projection if you prefer.

How To

Default Driver Structure

Magnifi starts with this formula:

Units × $/Unit × % Conversion

  • Units – e.g. hours, sessions, clients, or products

  • $/Unit – average price or rate per unit

  • % Conversion – the proportion of demand that is expected to convert into income

You can switch the conversion driver from % to # if you prefer:

Units × $/Unit × # Conversion

Tip: If you don’t need a conversion factor, simply leave it at 100%.

This setup is flexible and can be adapted to different businesses:

  • A product business might use # Products × Average $/Product

  • A service business might use # Clients × Average $/Client or # Leads × Average $/Lead × % Conversion

Rename Driver and Conversion Types

  1. Go to Options

  2. Select Edit Driver Types or Edit Conversion Types

  3. Enter the new title – it will appear in the drop-down list

Note: There’s no need to add the “%” symbol when naming a conversion type. For example, type “Conversion” instead of “Conversion %”.

Enter Income Drivers

  1. Open Income Drivers

  2. Enter values for each driver

  3. Double-click a cell to Copy Across values into future months

  4. Leave % Conversion at 100% if you don’t need it

By default, Magnifi adds up the Units row and averages the $/Unit row:

  • Example: Selling 100 products each month × $10/product = 1,200 products × $10/unit for the year

You can flip the calculation by clicking the switch icon next to Units. This averages the Units row and totals the $/Unit row:

  • Example: 10 clients per month spending an average of $100 = 10 clients per year spending $1,200 each

Stop Using Income Drivers (Without Removing the Account)

  • Enter 0 in the Units row

  • The total income will calculate as nil

  • Magnifi will treat the account as not using Income Drivers

  • The account will still appear in the Profit and Loss Projection, and you can enter values manually

Tips / FAQs

  • Do I have to use Income Drivers?
    No. You can always project directly in Profit and Loss if that’s easier.

  • Can I use Income Drivers for projected staff billable hours × rate?
    You can, but we recommend using the Capacity feature for this. If you want to link staff capacity to income, use the Capacity Link feature.

  • Can I rename the driver types?
    Yes. You can rename Driver and Conversion Types to match your business model.

  • Can I switch between driver-based and manual projections?
    Yes. Entering 0 for Units turns off drivers and allows manual entry.

  • Why aren’t my accounts showing?
    By default, Income Drivers only display active driver accounts. Select Show All Accounts to see everything.