Understanding Implied Margin and How It Affects Your Data Submission
Implied margin is a financial metric we use to check if the relationship between your company’s revenue and total spend looks correct based on typical business patterns. It helps us ensure that the data you've submitted makes sense from a business perspective.
We calculate implied margin using the following formula:
This gives us an idea of your company’s profit margin based on the data you’ve provided. If the margin seems too high or too low compared to typical business norms, we flag it for review.
Why Did I Fail the Implied Margin Check?
Failing the implied margin check simply means that the profit margin calculated from your data is outside the expected boundary for most companies in your sector. This could happen for a number of reasons:
- A potential error in the revenue or spend figures you submitted.
- A unique business model that results in a margin much higher or lower than usual.
Our system is designed to catch unusual scenarios to help you ensure accuracy, but it’s entirely possible for your business to have margins that genuinely fall outside the expected range.
What Should I Do If I Failed the Implied Margin Check?
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Review Your Data: Double-check your revenue and spend figures to ensure they are accurate. Small mistakes in data entry can sometimes lead to unexpected results.
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Leave a Comment for Our Review Team: If you believe the data is correct and your business has profit margins outside the expected range, you can appeal the check by leaving a comment for our manual review team. Be sure to confirm that all figures are accurate.
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Human Review: Our manual review team will take a closer look at your data. If they find that the check failed unnecessarily, they can override the implied margin check and approve your submission.
Rest Assured
Our checks are in place to protect against unusual data patterns, but we understand that every business is unique. If your implied margin falls outside the typical range, and you’ve confirmed your data is accurate, our team is ready to help. Simply flag the issue for review, and we’ll take it from there!
If you need further assistance or have questions about this check, feel free to reach out to our support team.