Case 1 Details

Case1 Graph:Year 1
Case1 Graph:Year 2
 
Year 1
Year 2
Total Revenue
$1,303,324
$2,410,145
Total Expenses
$932,906
$1,536,601
Profit
$370,418
$873,544

First Year Revenue Components

43 customers buying a $5000 ad every 2 months. (Not quite one customer for each of four salespeople per month)

Add 482 subscribers (1/10th of one percent of typical engagement per month) and 982 one time app downloads (1/10th of our listeners and 1/100th percent general app buyers)

Case 1 Sub Numbers

Add 1/10th percent of all of the CxO team’s connections enrolled in benefits, 45 people paying each month

Case1-Benes

One of out ten subscribers buys a hat

Constants and Assumptions for each case

Constants
 
GS&A expenses as a percentage of revenue (no more than)
20.00%
Office Expense (supplies, fees, etc) (typical)
5.00%
Legal and accouting fees by percent of revenue 
4.00%
Business Insurance typical percentage of revenue
3%
Average annual raise of salaried employees as percentage of revenue
12.00%
Commission for Ad Sales Team
30.00%
Artist Salary Fund Investment (percent of revenue)
10.00%
Revenue Royalty to Investor
10.00%
Unified Communications and Business phone, monthly
$500
Executive Compensation Yearly Raise
14.00%
GWS commission per user per month
20
Licensing Fee (Percentage of Revenue)
2%
General inflation
3%

Here’s a link to download an archive of the supporting financial model spreadsheets.  Unzip all into one folder and open the Masters Radio-FinancialPlans-Case1 Spreadsheet as it draws from all the others.

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