Subscription Web Site Profit Potential

Use this 'what if' spread sheet to quickly determine potential profit or loss of a subscription web site

Before I get involved in a new project, I usually like to 'run the numbers' to check to see if there is any chance the project can make a profit.

Doing this often shows me whether the project is worth pursuing, or is one that is doomed to failure no matter what I do.

The following worksheet is the one I developed to show the profit potential of subscription web sites.

Using the Worksheet

As you review the worksheet shown below, move your mouse over the ? images to see information about the field which will help you understand the different components.

Click the 'calculate' button to see results. Feel free to make changes and test out different 'what if' scenarios.

 
Subscription Web Site Worksheet

Instructions: Use this form to calculate potential profits or losses with a subscription web site.   Simply enter the information in the fields, then click 'Calculate'.   Results will be shown at the bottom of the page. DO NOT use commas in amount fields!!!
Subscription Web Site Information

? Web Site Name
? Annual Subscription Software Cost
? Annual Cost to Host web page
? Annual Marketing Budget
? Other Annual Costs
Member Sign Up Costs

? Cost of Order Processing
? Shipping or Delivery
? Other Per Member Costs

Product Revenue

? Subscription Price
? Back End Profits
? Back End Sales Percent% (no decimals)

* Click after entering data changes
Results

? Annual Project Costs
? Total Revenue Per Subscriber
? Net Revenue Per Subscriber
? Average Back End Revenue
? Number of Subscribers Required to Break Even
? Number of Subscribers Needed to Earn $10,000 before taxes
?Number of Subscribers Needed to Earn $50,000 before taxes
?Number of Subscribers Needed to Earn $100,000 before taxes

© Bill Myers. All rights reserved.