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Originally Posted by Marc De
I won't post my spreadsheet, sorry  But I'll do some quick math for ya... down and dirty 3rd grade stuff here to show!
100 sign ups
$4.95 trial
$39.95 monthly
$1.00 x sell
$39.95 monthly x sell
25% x sell opts
100 sign ups * $4.95 = $495
25 x sell opts * $1.00 = $25
35% trials convert = 35 * $39.95 = $1398.25
35% x sell convert = 8 * $39.95 = $319.60
Membership Income in 3 days = $2237.85 gross
Processing Fees, Refunds, C/Bs, Revokes = 20% = $1790.28 net
Payout $35 * 100 = $3500
Additional Income (mailing, upsells, www sales, consoles) of 20% = $700 net
Total Income in 3 days = $2490.28
That leaves a $1009.72 defecit from 3 days of activity, after averaging out 10 months of additional recurring income from those 100 members will far outweigh that $1010 defecit and retrun a gross profit. This is where volume comes in order to handle overhead and product costs which should not be very significant.
If I made minor mathematical errors, please forgive me, I didn't review the post! This again is VERY simple and the spreadsheet that ARS operates off is very in depth and detailed but you can see how you set up your minimum performance variables on controllables. |
Thanks for posting. It shows class. So here are some more questions. I won't argue or disect your math, cause for the sake of the matter, we will call a spade a spade for now. You are at a $1,000 deficit right there, and you plan on making that up where? Rebills? Better have a ton of them, way more than 35%. bandwidth, hosting, galleries, marketing material, banking fees, rent, computer software and hardware, office supplies, bookkeeping, tax preperations, legal work, 2257 compliance, SALARIES, designers, postage, telephone bills, gas and electric, internet provider, marketing, trade shows, travel, programmers, must I go on? Oh yeah, ONE more, TAXES. You are saying you cover all that and MORE with some rebills.....please.
PS....all of the above you consider to be "INSIGNIFICANT". Wow, now I am even more curious. Wonder Why.