The financial model for a corporate subscription, or membership portal

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In the previous article in this series we looked at the Individual Subscription Model. Having completed that model, we will now look at the separate (and distinct) ‘Corporate Subscription Model’ we use for the example portal business.

The corporate product is a slightly quicker and easier product to model within a worksheet, as it does not include free trials and resulting conversion rates. As a result the following are variables that we will use to construct the rolling monthly model:

  • AVERAGE MONTHLY SUBSCRIPTION COST
  • AVERAGE DISCOUNT ON PRICE
  • RESULTING MONTHLY SUBSCRIPTION COST
  • AVERAGE MONTHLY RETENTION RATE

Again, simply replace and/or edit the names of the individual portals to suit your own business. The worksheet is built so you can add , or remove portals from this list. If you only have the one site, then remove all but one of the portals from each line.

In addition to the standard variables, the model makes use of paid sign-up variables to power the other numbers. These can be predicted from the marketing results, et alia.

Personally, I am always conservative with these numbers as they cannot be known for new products.

PAID MODEL – MONTHLY SIGN-UP VARIABLES

  • VIRTUAL REALITY
  • SPACE TECHNOLOGY
  • GENOMICS
  • ARTIFICIAL INTELLIGENCE
  • ALTERNATIVE ENERGY
  • NANOTECHNOLOGY
  • PHARMACEUTICAL TECHNOLOGY
  • TOTAL SIGN-UPS PER MONTH

PAID USERS – MONTHLY TOTALS

  • VIRTUAL REALITY
  • SPACE TECHNOLOGY
  • GENOMICS
  • ARTIFICIAL INTELLIGENCE
  • ALTERNATIVE ENERGY
  • NANOTECHNOLOGY
  • PHARMACEUTICAL TECHNOLOGY
  • TOTAL REVENUE

RESULTING MONTHLY REVENUES

  • VIRTUAL REALITY
  • SPACE TECHNOLOGY
  • GENOMICS
  • ARTIFICIAL INTELLIGENCE
  • ALTERNATIVE ENERGY
  • NANOTECHNOLOGY
  • PHARMACEUTICAL TECHNOLOGY
  • TOTAL MONTHLY REVENUE

RESULTING ANNUAL REVENUES

  • VIRTUAL REALITY
  • SPACE TECHNOLOGY
  • GENOMICS
  • ARTIFICIAL INTELLIGENCE
  • ALTERNATIVE ENERGY
  • NANOTECHNOLOGY
  • PHARMACEUTICAL TECHNOLOGY
  • TOTAL ANNUAL REVENUE

As with the ‘Individual Subscriptions’ page the ‘Corporate Subscriptions’ model plugs the annual numbers into the ‘Results Page’ and the monthly numbers into the ‘Budget Detail’ and ‘Monthly Travel’ worksheets.

The entire workbook, including the entirety of the (boilerplate) business and financial model for our example portal business is available as a download to paying subscribers.

Now we have completed the Corporate Subscription Model worksheet, lets move on to the next model in this series, which is an e-commerce model where our example business is selling single-copy content items via the portals:

  • 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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