The individual subscription financial model

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The first model proper we are building for this example portal business is the ‘Individual Subscriptions Model’.

The worksheet itself is broken down by month and utilises the following model variables:

  • AVERAGE MONTHLY SUBSCRIPTION COST
  • AVERAGE DISCOUNT ON PRICE
  • RESULTING MONTHLY SUBSCRIPTION COST
  • AVERAGE MONTHLY RETENTION RATE
  • FREE TO PAID CONVERSION RATE
  • FREE TRIAL PERIOD (in months)
  • VIRTUAL REALITY – TRIALS PER MONTH
  • SPACE TECHNOLOGY – TRIALS PER MONTH
  • GENOMICS – TRIALS PER MONTH
  • AI – TRIALS PER MONTH
  • ALTERNATIVE ENERGY – TRIALS PER MONTH
  • NANOTECHNOLOGY – TRIALS PER MONTH
  • PHARMACEUTICAL TECHNOLOGY – TRIALS PER MONTH
  • VIRTUAL REALITY – PAID SIGN-UPS
  • SPACE TECHNOLOGY – PAID SIGN-UPS
  • GENOMICS – PAID SIGN-UPS
  • ARTIFICIAL INTELLIGENCE – PAID SIGN-UPS
  • ALTERNATIVE ENERGY – PAID SIGN-UPS
  • NANOTECHNOLOGY – PAID SIGN-UPS
  • PHARMACEUTICAL TECHNOLOGY – PAID SIGN-UPS

As the example business we are talking about is a new product, you will need to include build time and any resulting lag into the model. Assume the same for the ‘Corporate Subscriptions Model’ and the ‘Advertising Sales’ worksheets we are building as part of this series. The resource available and complexity of the build to MVP status would dictate to you the build time and resulting lag. This could be anything from 3-6 months.

The model is separated into the following sections:

FREE TRIAL VARIABLES

  • VIRTUAL REALITY – TRIALS PER MONTH
  • SPACE TECHNOLGOY – TRIALS PER MONTH
  • GENOMICS – TRIALS PER MONTH
  • ARTIFICIAL INTELLIGENCE – TRIALS PER MONTH
  • ALTERNATIVE ENERGY – TRIALS PER MONTH
  • NANOTECHNOLOGY – TRIALS PER MONTH
  • PHARMACEUTICAL TECHNOLOGY – TRIALS PER MONTH
  • TOTAL TRIALS PER MONTH

PAID MODEL – SIGN-UP VARIABLES

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

FREE TRIALS – MONTHLY MATURING

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

PAID USERS – MONTHLY TOTALS

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

TOTAL MONTHLY REVENUES

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

RESULTING ANNUAL REVENUES

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

Finally, it is worth remembering that users Credit Card information is garnered during the free trial sign-up process. –Much more on this in other sections of the website.

Remember, the entire workbook will be available in the downloads section of paying subscribers to this website.

Now we have completed this page in the workbook, lets move on to the next page, which is the second commercial models, the Corporate Subscription 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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