Perspectives

The 7x Standard

Most of life pays you back more than you put in. Software should have to keep that deal too.

Jonathan van Dalen

Jonathan van Dalen

3 min read

A runner mid-stride on a wet road at dawn, with the domeo.ai wordmark and the line “Get More Than You Give.”
Get more than you give. The test we already apply to the gym, and the one software should have to pass too.

Most of the worthwhile things in life give you back more than you put into them. The gym is an easy example. It costs me some money and a few hours a week, and what I get in return is far beyond that: I sleep better, I have more energy, and I’m probably buying myself a few extra good years down the road.

I’ve never sat down and calculated the ROI on my membership, because I’ve never needed to. The benefit keeps showing up in my life, and the day it stopped, I’d stop going.

For some reason, business software has always been exempt from this standard. The return gets calculated exactly once, on a slide, somewhere in the middle of the sales cycle, and after the contract is signed nobody ever brings up that number again. The mid-market has been sold this show for twenty years: enterprise prices, year-long deployments, and outcomes taken on faith.

We built Domeo on the opposite premise, which is that the return is the product. We measure it, we report on it every month, and if it ever stopped showing up, you should stop paying us.

Here’s how we think about it, how we’ve delivered it, and why it’s finally possible.

1. ROI is a real benefit, not a slide

When a client goes live with us, we start tracking the return in two places, and we send them the results every month for as long as they’re a customer.

Capacity

The first is capacity. Collections work is mostly a volume problem (statements that need to go out, reminders that need to follow them, customer replies that need answers), and most AR teams are staffed to cover a fraction of that volume, so the rest of the book just quietly ages.

When the platform absorbs that work, coverage goes from partial to complete without anyone new on payroll, and the team you already have gets pulled off the repetitive chasing and onto the accounts that actually need judgment.

We track those hours and translate them into what they’d cost in salaries, because “productivity gains” is not a number anyone can take to a budget meeting.

Capital

The second is capital. Every dollar your customers haven’t paid yet is a dollar of yours sitting in someone else’s bank account, and depending on how the business is financed, you’re either borrowing to cover that gap or missing what that cash could be doing elsewhere.

When collections tighten up and cash comes in faster, that money comes home. And the return isn’t a one-time bump, because capital that used to be trapped in receivables stays out of them month after month.

We look at DSO over a rolling window and at what’s actually sitting on the books, and we price the improvement at your cost of capital rather than some flattering assumption of ours.

You see the same report we do, every month. That’s the whole idea: the return isn’t something we told you about once during the sales process, it’s something you can check whenever you want, the same way you know whether the gym is still working for you.

If it ever stopped showing up, you should stop paying us.

2. What this looks like in action

Take a mid-market industrial manufacturer. The implementation takes less than thirty days and costs them nothing, and six months after go-live the numbers look like this:

Mid-market industrial manufacturer
Six months after go-live, on a representative mid-market book.
Working capital
$4.5M
of working capital back in the business
Days sales outstanding
2 weeks
off DSO
Past due 60+ days
−58%
past-due balance beyond 60 days
Team capacity
2 people
of AR capacity returned, with no new hires
Illustrative example. Figures are modeled on aggregate outcomes across Domeo deployments and are not the reported results of any single client.

It’s worth pausing on what doesn’t change, which is invoicing volume. The AR balance doesn’t shrink because business slowed down; it shrinks because cash that used to sit in receivables comes back into the business, and keeps coming back.

Two of those results convert straight into dollars. The platform covers every reachable account, sending each statement and reminder and drafting customer replies for the team to review: the workload of a collections function the company would otherwise have to staff.

And the freed working capital isn’t a one-time win; it’s financing cost that comes off the books this year, and next year, and the year after that.

3. Why 7x, and why it fits your budget

Almost nothing in the mid-market returns seven times its cost, and it’s worth being honest about why. Legacy order-to-cash economics were built in a different era, with six-figure implementation fees, deployments that ran nine to eighteen months, and armies of consultants billing along the way.

The return was consumed before it was ever generated.

Native AI breaks that structure. When the platform does the heavy lifting on implementation, coverage, and the repetitive work, the cost of delivering the outcome collapses, and we can finally price to the value we create.

There’s no implementation fee, you’re live in under thirty days, and the contract fits inside a single budget line item.

Where the return used to go
Legacy order-to-cash economics, and what changes when the platform does the lifting.
MeasureLegacy order-to-cashDomeo
Implementation feeSix figuresNone
Time to go liveNine to eighteen monthsUnder thirty days
ROI reportedOnce, during the sales cycleEvery month, for the life of the contract
Legacy column reflects typical mid-market order-to-cash deployments of the last two decades.

This means measuring ROI becomes easier. We don’t need to figure out how many hours were billed or what special projects were created. Finally, the simple pricing makes it so the 7x return is possible.

That’s why 7x isn’t a stretch for us, but rather the standard, and it’s one you should now hold every vendor to.

Expect more

The mid-market was told to expect less, and that was the wrong answer. Software in the AI era should go live in weeks, price to outcomes, and answer to a monthly performance report for as long as it’s deployed.

ROI isn’t our pitch, it’s the foundation of how we think.


See the math on your own AR

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