What's the minimum you should be shooting for? I'm thinking that up until a certain point your losing money until you reach a certain amount of membres.
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work it until you can make a decent profit, if it doesnt sell as well as you plan try something new - theres no set #, its whatever makes you happy! -
I suppose it all depends on where and or how much you pay for your content.....
I personally scan most of my content out of mags i buy down at the local 7-11..... (hustler has the best converting pics) ......
NO seriously though, Depends on alot of things.... like retention %'s, and total download size of your member's section.... and a ton more things.....
I'd say shoot for about 20,000 for the first year..... :-)Message me to promote nebraskacoeds + network sites...Comment
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there should be no # you should shoot for. you should try your hardest to get more members and never stop.I host with VacaresComment
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When you open your first paysite, you should first try to shoot for having 1 member. Then 2 members. Next 3 members. Rinse, lather and repeat."Every normal man must be tempted, at times, to spit on his hands, hoist the black flag, and begin slitting throats."
--H.L. MenckenComment
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Okay, here goes. The first thing you have to do is figure out your break even point. Here's how:
1. Determine the selling price of one unit (membership) of your product. (This can be one unit of a physical product like a computer, or one unit of service like building a web page.)
2. Determine the cost of materials. (the unit is a service, there probably won't be any materials. but you can calculate time invested as a material object; just assign a # to it.)
3. Determine the total number of hours it takes to complete the service or build the product. (If it takes two people 4 hours each to complete one unit, the number of hours is 8.) This falls into the amount of time it takes to update on a daily basis, also including the time it took to originally build the site.
4. Determine the wage that you will pay for one hour of labor. Even if it is to yourself.
Once you figure each of these out (you probably have most of them figured out) you can determine how much your break even point will be. To keep it less confusing, look at your B.E.P. as what your future customers owe you for your time/money/resources already put into this.
Once you determine your B.E.P., you can then figure out how many memberships it will take to "make up" for what you've spent.
From these calculations, (the cost of everything going in compared with how many memberships it took to get it back), you can then figure out your Fixed costs:
1. Determine the costs for monthly expenses: rent, utilities and telephone, insurance, advertising and salaries. Determine if there are any other expenses that may also apply. Temporary help and website hosting are examples of other types of fixed expenses.
2. Establish the cost over the next three years. A quarterly cost will be calculated for you. Use this as the starting point, and then decide if these costs will remain the same, or if you expect them to go up or down over time.
3. Determine your break even point. The total fixed cost line is added for you; just divide that number by the net profit per unit from the economics of one unit calculator. (look above)
4. Determine how many units you expect to sell for each quarter. Will this number rise or fall seasonally? How long will it take for your company to achieve break even?
5. Figure the Projected gross sales revenue and the cost of goods sold for each quarter. A projected gross profit will be calculated.
With this, you have a calculated amount you need to acquire before your work has paid itself off, and then you can set yourself quarterly goals to meet to simply lace your pockets on a yearly basis.
hope this helps.Last edited by hybrid; 12-07-2002, 08:37 PM.Comment
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Hybrid, you DO know don't you, that we're going to have to give you at least 10 demerits for posting not only a genuine reply, but one with valid points and very useful information?
J/K - good response!Comment
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I have only 1 member...but I charged him $100K a month...he's been a member for well over 3 months now...I wonder if just forgot to cancel.For rent - ICQ 127-027-910
Click here for more detailsComment
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Thanx, Carrie....now if only I could stop racking up the book smarts and accumulate the street smarts in this biz, I'd be good to go.Originally posted by Carrie
Hybrid, you DO know don't you, that we're going to have to give you at least 10 demerits for posting not only a genuine reply, but one with valid points and very useful information?
J/K - good response!
So it goes.Comment
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