Hopefully by now you've taken some time to test out the simple model within the spreadsheet. Now it's time to drill down into more specific costs, adjusting for a wider range of variables based on more specific heuristics.
In the simple model we used a base cost and a multiplier, for the advanced model we will still assume a base cost, adding in an average cost per link and discount rates based on some additional competitive factors.
The competitive factors we will use to augment costs in the advanced model are:
To take into account both the logarithmic nature of DA and PA I will be using discount rates for each of these metrics, to compute an estimated net present value to be used as our multiplier.