Financial models for content and product sales

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Moving on from the two paid subscription models we looked at in the previous articles within this series, the ‘Report Sales’ worksheet outlines the various report products that the example business will take to market.

It takes into account both internally produced reports; and those produced externally by a separate vendor such as Gartner, or GlobalData and then sold by the business.

The model variables that we use with the ‘Report Sales’ model are as follows:

  • PRICE OF COMPANY PROFILES (SWOTS ON DEMAND)
  • PRICE OF QUARTERLY REPORTS
  • PRICE OF INDUSTRY PROFILES
  • PRICE OF MANAGEMENT REPORTS
  • AVERAGE VALUE OF EXTERNAL REPORT
  • PERCENTAGE REVENUE PER SALE

Please note that we have (of course) stipulated the content types. If you are selling products on your portals then simply replace these with the products.

In addition to the standard variables, we also feature a rolling monthly variable based around a cautious, yet steadily ramped-up sales effort, noting the small initial size of the marketing lists, amongst other reasons.

The variables are for the entire period of the model, so in this case 60 months and unlike the other commercial models are not broken down by individual portal.

The reasoning for this is that by utilising the slice and dice methodology outlined elsewhere on this website the business will likely produce R&A reports not strictly fitting within the defined niche markets covered by the portals.

  • REPORT SALES PER MONTH
  • COMPANY PROFILES (SWOTS ON DEMAND)
  • QUARTERLY REPORTS
  • INDUSTRY PROFILES
  • MANAGEMENT REPORTS
  • 3RD PARTY PREMIUM REPORTS

The variables highlighted above generate the following results:

RESULTING MONTHLY REVENUE

  • COMPANY PROFILES (SWOTS ON DEMAND)
  • QUARTERLY REPORTS
  • INDUSTRY PROFILES
  • MANAGEMENT REPORTS
  • 3RD PARTY PREMIUM REPORTS
  • TOTAL MONTHLY REVENUE

RESULTING ANNUAL REVENUE

  • COMPANY PROFILES (SWOTS ON DEMAND)
  • QUARTERLY REPORTS
  • INDUSTRY PROFILES
  • MANAGEMENT REPORTS
  • 3RD PARTY PREMIUM REPORTS
  • TOTAL ANNUAL REVENUE

In future iterations of the model it will be worth looking at adding tiered affiliate sales into the equation. For example, you may want to have one affiliate taking 50 per cent commission on your product sales (tier one). In-turn that affiliate might want to offer his/her network 25 per cent commission on any product sales they make (tier two). This tiered approach to affiliates is of varying importance depending upon the price point and attractiveness of your products. It can be exceptionally successful.

Now we have completed this e-commerce-enabled report sales worksheet, lets move on to the next model in this series, which is a standard (inventory-based) advertising sales model:

  • Outline and Results page
  • Monthly Travel
  • Individual Subscriptions Model
  • Corporate Subscriptions Model
  • Report Sales Model
  • Advertising Sales Model
  • Marketing Plan and Model
  • Contributor Payment Model
  • The HR, Assorted Costs and Budget Detail Pages
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