5 KPI & Metrics for a Family History Research Firm: What Measures Define Success?
Family History Research Firm
You're hiring before product-market fit and need five KPIs: Average Project Fee, Gross Margin on Projects (COGS falling from 225% toward 175%), Customer Acquisition Cost, Annual Digital Vault Renewal Rate ($1,500 subscription) and Operating Cash Burn Months. Watch Minimum Cash of $2,456,000 and Minimum Cash Month Jan-28 to time fundraising and hit breakeven in Year 3.
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KPI Metric
Description
1
Average Project Fee
Booked revenue per archival package; guides pricing, upsell effectiveness, and cash expectations.
2
Gross Margin on Projects
Revenue minus research labor and materials; indicates package profitability and pricing needed for positive EBITDA.
3
Customer Acquisition Cost (CAC)
Total marketing and partner spend per new client; measured against Average Project Fee for payback.
Months until minimum cash at current burn; informs hiring, capex, and fundraising timing.
Key Takeaways
Keep Monthly CAC below Average Project Fee
Track Annual Vault renewals to hit $90,000
Reduce project COGS from 225% toward 175%
Monitor Operating Cash Burn Months before Jan-28
What Are The 5 Must-Track KPIs?
You're running a family history research firm and these five KPIs tell you if pricing, projects, marketing, subscriptions, and cash are working-keep reading to act fast. Track Average Project Fee, Gross Margin on Projects, Customer Acquisition Cost (CAC), Annual Digital Vault Renewal Rate (the $1,500 vault subscription), and Operating Cash Burn Months. Use them to set archival package pricing, monitor research labor COGS, and spot runway risks. For setup and go-to-market steps see How to Start a Family History Research Firm?
Five KPIs to watch weekly
Average Project Fee - price per archival package; ties to contribution margin
Gross Margin on Projects - revenue minus research labor and digitization materials (COGS)
Customer Acquisition Cost (CAC) + referral commission cost - marketing spend per new client vs fee
Annual Digital Vault Renewal Rate & Operating Cash Burn Months - subscription renewal health and cash runway months
What Numbers Tell You If You're Actually Making Money?
Focus on five measures that show if the family history research firm is truly profitable and cash-positive-keep reading to see the exact items to track. Key metrics: Gross Margin on Projects, EBITDA, net cash flow from operations, revenue by stream, and breakeven year; learn how they tie to pricing, COGS, and subscriptions in this short checklist and see next steps at How to Start a Family History Research Firm?
Profitability metrics to watch
Track Gross Margin on Projects after research labor COGS and restoration materials
Measure EBITDA for service firms to see operating profitability before tax and financing
Monitor net cash flow from operations to confirm real cash generated or consumed
Break down revenue by stream and confirm the breakeven year for cash-positive timing
Which KPI Predicts Cash Flow Problems Early?
Operating Cash Burn Months is the earliest red flag for a family history research firm - it shows how long cash will last at current burn and forces action. Also watch accounts receivable days and pipeline conversion rate to spot incoming shortfalls, plus subscription renewal timing and capex schedule versus cash reserves for timing risks. For setup cash needs and initial runway planning see How Much Does It Cost to Start a Family History Research Firm?
Cash-flow early warning checklist
Operating Cash Burn Months: months of runway at current burn
Accounts receivable days: invoice-to-cash delay
Pipeline conversion rate: certainty of future bookings
Subscription renewal timing & capex vs cash reserves: timing risks
Which KPI Shows If Marketing Is Paying Off?
Customer Acquisition Cost (CAC) versus Average Project Fee is the clearest short answer, and it tells you if each booked archival package covers your marketing and referral costs - read on for the quick checks and actions. Compare CAC to the Average Project Fee to see payback timing, track Referral Conversion Rate for partner efficiency, and measure marketing-sourced pipeline value to forecast booked revenue. For setup and packaging context, see How to Start a Family History Research Firm?
Marketing KPIs to watch
Compare CAC vs Average Project Fee
Track Referral Conversion Rate
Measure marketing-sourced pipeline value
Monitor cost per qualified lead and sales cycle length
What KPI Do Most New Owners Ignore Until It's Too Late?
You're often blindsided by the Annual Digital Vault Renewal Rate and other subscription costs-ignore them and subscription churn multiplies lifetime value loss, so pay attention now. How Much Does a Family History Research Firm Business Owner Earn? shows why recurring revenue matters. Track renewal health alongside Average Project Fee and Customer Acquisition Cost (CAC) to protect margins and predict cash runway months.
Give a header name
Annual Digital Vault Renewal Rate-often ignored until churn spikes and recurring revenue falls.
Artifact insurance premiums as percent of revenue-slowly erode Gross Margin on Projects and subscription profitability.
Vault blockchain fees scale with users and can eat into the digital vault subscription margin.
Secure transport and handling costs rise with artifact volume and push up research labor COGS and operating cash burn months.
What Are 5 Core KPIs Should Track?
KPI 1: Average Project Fee
Definition
Average Project Fee measures the booked revenue per archival package sold to clients. It shows whether pricing, upsells, and package mix cover research labor (COGS) and referral commission costs, and it directly drives cash collection expectations for one-off archive sales.
Advantages
Shows revenue per sale to set tiered archival package pricing
Links to contribution margin vs research labor COGS for profitability
Flags when referral commission cost eats into payoff period
Disadvantages
Can hide mix shifts if low-volume high-ticket sales dominate
Ignores timing - one-off fees differ from subscription cash flows
Skews if refunds, discounts, or bundled subscriptions aren't separated
Industry Benchmarks
For high-net-worth genealogy and archival services, firms commonly set entry package fees near $25,000 and move up for bespoke research; tracking the average helps compare realized pricing against list tiers. Benchmarks matter because a rising Average Project Fee usually improves contribution margin and shortens CAC payback when referral commission cost is fixed.
How To Improve
Introduce clear tiered archival package pricing starting at $25,000
Bundle optional $1,500 digital vault subscription to lift average order value
Reduce research labor COGS by standardizing workflows or selective outsourcing
How To Calculate
Average Project Fee = Total revenue from archival projects / Number of archival projects sold
Example of Calculation
Average Project Fee = $100,000 / 4 projects = $25,000
Tips and Trics
Report Average Project Fee monthly and by package tier to spot mix shifts
Compare Average Project Fee to CAC to check payback timing and margin
Exclude subscription and vault fees from the metric or report both blended and unblended
Track accounts receivable days per project - late payments shrink realized fee; defintely model collection timing into cash runway
KPI 2: Gross Margin on Projects
Definition
Gross Margin on Projects is project revenue minus direct costs for research labor and digitization materials. It shows whether an archival package covers the work and materials needed to deliver it and flags pricing or cost issues early.
Advantages
Shows per-package profitability to set and test archival package pricing
Guides make-vs-buy for research labor and outsourcing
Direct input to EBITDA for service firms and product-level margin analysis
Disadvantages
Can be distorted if indirect costs (overhead) are ignored
Seasonal or single large project can swing the metric misleadingly
High reported margin can hide cash issues from slow receivables
Industry Benchmarks
For this firm, track COGS as a percent of revenue and compare to the internal trend: current COGS levels are reported at 225% moving toward 175%. Benchmarks matter because a COGS above 100% means negative gross margin and forces pricing or cost changes to reach positive EBITDA by Year 3.
How To Improve
Raise tiered pricing (start at $25,000) to cover high research labor COGS
Outsource low-value research tasks to cut research labor hours per project
Standardize digitization materials and batch shipments to reduce unit cost
Gross Margin on Projects = $25,000 - ($56,250) = -$31,250
Tips and Trics
Track COGS per project line-item: labor hours, scanning, materials
Report gross margin monthly and flag projects with margin <0%
Compare margin by package tier to find profitable and loss-making SKUs
Use margin trends to set referral commission cost ceilings and subscription pricing; defintely tie to CAC payback
KPI 3: Customer Acquisition Cost (CAC)
Definition
Customer Acquisition Cost (CAC) is the total marketing and partner event spend divided by new clients acquired. It shows how much you pay to win one archival package buyer and must be measured against the Average Project Fee to assess payback timing.
Advantages
Shows payback: compare CAC to $25,000 starting project fee.
Guides channel mix: separates paid events from referral efficiency.
Drives unit economics: flags when referral commission cost inflates CAC.
Disadvantages
Can hide quality: low CAC may bring low-value clients.
Lagging: uses closed clients, so it misses pipeline shifts.
Overlooks variable costs like referral commissions unless included.
Industry Benchmarks
Benchmarks vary by service model; for high-ticket archival packages, compare CAC to the Average Project Fee (example starting tier $25,000) and to first-year client value including the $1,500 annual digital vault. Use payback window (months to recover CAC) and the subscription renewal impact to judge acceptability.
How To Improve
Track referral conversion and shift spend to high-conversion partners.
Include referral commission cost in CAC to see true acquisition cost.
Shorten sales cycle to lower cost per closed client.
How To Calculate
Customer Acquisition Cost (CAC) = Total marketing + partner event spend + referral commissions / New clients acquired
Break CAC by channel: events, digital ads, and referral partners.
Report CAC payback months; target payback within 12-18 months for mixed project+subscription models.
Include referral commission cost consistently - it can defintely double perceived efficiency.
KPI 4: Annual Digital Vault Renewal Rate
Definition
Annual Digital Vault Renewal Rate is the percentage of clients who renew the $1,500 yearly digital vault subscription. It measures the health and predictability of the subscription revenue stream and indicates whether clients see ongoing value from updates, insurance, and vault services.
Advantages
Drives recurring revenue predictability and valuation for the subscription component
Increases lifetime value (LTV) beyond one-time archival sales
Signals product-market fit for ongoing services like insurance and updates
Disadvantages
Can mask margin erosion if renewal price doesn't cover incremental costs (insurance, blockchain fees)
High renewal rate alone ignores concentration risk in a small client base
Delayed recognition if renewals are annual - cash timing gaps can hide short-term cash strain
Industry Benchmarks
Use the renewal rate to compare against your own subscription targets and the subscription revenue forecasts. For example, the plan shows $90,000 subscription revenue in 2026 and $900,000 by 2030, which translate directly to required renewal counts at the $1,500 price point.
How To Improve
Offer multi-year discounts or auto-renew to raise retention
Add value (periodic updates, insurance, secure transport reports) to justify price
Segment renewals by cohort and run targeted outreach to at-risk groups
How To Calculate
Annual Digital Vault Renewal Rate = (Number of Renewals ÷ Number of Eligible Renewals) × 100%
Track renewal revenue vs. forecast: $90,000 in 2026 needs 60 renewals at $1,500
Monitor cohort retention each year to spot churn spikes early
Include renewal timing in cash flow models to improve operating cash burn months forecasts
Price renewals to cover incremental costs (insurance, vault blockchain fees); defintely test small increases on new cohorts
KPI 5: Operating Cash Burn Months
Definition
Operating Cash Burn Months measures how many months your current cash will last before you hit the Minimum Cash threshold at current net cash burn. It shows runway pressure, tells when to pause hires or capex, and flags the need for fundraising or revenue acceleration before Jan-28.
Advantages
Shows runway in months so you can time fundraising
Pins hiring and capex decisions to cash, not hope
Links fixed costs (rent, licensing) to survival risk
Disadvantages
Depends on accurate monthly burn - small errors distort months
Ignores one-off timing items like large upfront subscription receipts
Can mask receivables delays (accounts receivable days) that shrink real cash
Industry Benchmarks
For early-stage service firms, a common target is 6-12 months of runway. Established subscription-plus-project firms often keep 12+ months if liabilities include insurance premiums or recurring vault blockchain fees. Benchmarks matter because this KPI drives hiring freezes, fundraising timing, and breakeven planning toward Year 3.
Track five core KPIs monthly: Average Project Fee, Gross Margin on Projects, Customer Acquisition Cost, Annual Digital Vault Renewal Rate, and Operating Cash Burn Months Use these to diagnose pricing, marketing efficiency, subscription health, and runway Compare trends against revenue targets including REVENUE 1Y through REVENUE 5Y for context
Review operating cash burn and runway at least monthly and before major hires or capex decisions Monitor Minimum Cash of $2,456,000 and the Minimum Cash Month Jan-28 from your projections Monthly checks align with five core KPI reviews and help prevent surprises before Year 3 breakeven
Aim for a high single-digit to low-double-digit point improvement in renewal rate year-over-year to grow recurring revenue Use the Annual Digital Vault Renewal Rate to lift subscription revenue toward the forecasted $90,000 in 2026 and $900,000 by 2030 Improvements compound across five years of growth
Yes you need per-project COGS tracking including Research Labor and digitization materials percentages Monitor COGS moving from 225% toward 175% over time to protect margins This drilling supports reaching positive EBITDA by Year 3 and higher EBITDA in Years 4 and 5
Price packages to cover COGS, referral commissions, and desired gross margin while aligning with affluent client expectations Start with tiered fixed fees beginning at $25,000 and factor in $1,500 annual subscription revenue Validate pricing against projected REVENUE 1Y and the breakeven point in Year 3
