The Revenue Estimations Model

Many people are struggling with estimating how much money a specific business model can make. There are many assumptions that need to be made, decisions to take and goals to prioritize.

This is where models come in handy. So we built a revenue estimation model for ourselves.

In this model, transformed to a simple Google Doc form, you can choose one of Three business models: Content Website, Mobile App or Email List (but the same techniques can actually be applied to many other models such as Affiliates, eCommerce etc.)

Then you set the initial user base for your baseline, estimated growth rate, the CR for your ad inventory and the price you’re getting from each ad unit.

And… Viola. The model calculates how much money you’re going to make over 12 months and the breakdown of every revenue source, so you’ll know where to invest your time and efforts.

http://imgur.com/Cs1HkaU

Please see the first tab for instructions on how to use this model and some more clarifications about the calculations and the terms.

Let us know if you have any comments, requests for changes or if you found any bugs (there shouldn’t be any!).

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Tags

#advertising #business models #revenue estimator #revenue projections


Originally published at hackingrevenue.com.

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