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BISP-3C, Oct. 3, 2015

NEW REVENUE FORECASTS

Here are two scenarios, one for a publication of 4000

readers, and the other with 40,000 readers.

To begin, describe your expectations with the following

four questions.

1. What portion of your readers can be

persuaded to become regular ticket users:

"some" or "many"?

2. How often per week will your ticket

holders purchase stories from you:

"sometimes" or "a lot"?

3. Will the typical cost of most of your

badges be closer to four cents, or to forty

cents? Answer with: "low price" or

"qualtiy content".

4. For "Keepsake" sales with a $2 price,

would your ticket holders make purchases

"seldom" or "often"? "Seldom" means once

per year, and "often" means 6 times per year.

Here are how the other questions are interpreted. If

"some" of your readers become ticket users, that's ten

percent of them. If "many" do, that's half of them.

If a ticket holder typically purchases stories

"sometimes", that means five stories per week. And "a

lot" means twenty-five stories per week.

With a "low-price" approach, eighty percent of your

tickets cost four cents each, and twenty percent cost

forty cents each. For a "quality content" approach, the

opposite applies. This makes an average price per badge

of either 11.2 cents or 32.8 cents for the two

approaches.

Weekly revenue from Keepsake-type content is 3.8 cents

for one sale per year, or 23 cents for six sales per a

year.

Now here are two specific examples.

Suppose a publication with 4000 subscribers anticipates

that many of them can be persuaded to become regular

Newspaper Ticket users. It's also anticipated that each

ticket holder will buy stories "sometimes", that they

will typically be priced at 40 cents, and that they will

seldom buy Keepsake content.

This means that 2000 people will buy five times per week

at an average cost of 32.8 cents, and that comes to

$3280. Add $76 a week for Keepsake items, and the total

is $3356 per week, or about $174,000 of new revenue

annually.

2000 x 5 x 32.8 cents = $3280 per week, plus $76.

$174,512 per year.

Here's a second example. A publication with 40,000

subscribers anticipates that only some of them will

become ticket users, but that those who do will buy a lot

of stories. Badges of 4 cents will be more common than

those costing 40 cents. However, a ticket holder might

well buy a Keepsake item six times a year.

This means that 4000 people will buy 25 items per week at

an average cost of 11.2 cents, and also buy Keepsake

items for the equivalent of 23 cents per week.

4000 x 25 x 11.2 cents = $11,200. Plus Keepsake items =

$920. Total $12,120 per week, $630,240 per year.

Weekly badge charges from the Clean Machine in the case

of 60 active badges using the "low cost" approach would

be $124.80, and using the high cost approach would be

$211.20. There is also an annual 90-badge membership fee

of $1600, which amounts to $31 per week.

BISP-3C, Oct. 3, 2015

NEW REVENUE FORECASTS

Here are two scenarios, one for a publication of 4000

readers, and the other with 40,000 readers.

To begin, describe your expectations with the following

four questions.

1. What portion of your readers can be

persuaded to become regular ticket users:

"some" or "many"?

2. How often per week will your ticket

holders purchase stories from you:

"sometimes" or "a lot"?

3. Will the typical cost of most of your

badges be closer to four cents, or to forty

cents? Answer with: "low price" or

"qualtiy content".

4. For "Keepsake" sales with a $2 price,

would your ticket holders make purchases

"seldom" or "often"? "Seldom" means once

per year, and "often" means 6 times per year.

Here are how the other questions are interpreted. If

"some" of your readers become ticket users, that's ten

percent of them. If "many" do, that's half of them.

If a ticket holder typically purchases stories

"sometimes", that means five stories per week. And "a

lot" means twenty-five stories per week.

With a "low-price" approach, eighty percent of your

tickets cost four cents each, and twenty percent cost

forty cents each. For a "quality content" approach, the

opposite applies. This makes an average price per badge

of either 11.2 cents or 32.8 cents for the two

approaches.

Weekly revenue from Keepsake-type content is 3.8 cents

for one sale per year, or 23 cents for six sales per a

year.

Now here are two specific examples.

Suppose a publication with 4000 subscribers anticipates

that many of them can be persuaded to become regular

Newspaper Ticket users. It's also anticipated that each

ticket holder will buy stories "sometimes", that they

will typically be priced at 40 cents, and that they will

seldom buy Keepsake content.

This means that 2000 people will buy five times per week

at an average cost of 32.8 cents, and that comes to

$3280. Add $76 a week for Keepsake items, and the total

is $3356 per week, or about $174,000 of new revenue

annually.

2000 x 5 x 32.8 cents = $3280 per week, plus $76.

$174,512 per year.

Here's a second example. A publication with 40,000

subscribers anticipates that only some of them will

become ticket users, but that those who do will buy a lot

of stories. Badges of 4 cents will be more common than

those costing 40 cents. However, a ticket holder might

well buy a Keepsake item six times a year.

This means that 4000 people will buy 25 items per week at

an average cost of 11.2 cents, and also buy Keepsake

items for the equivalent of 23 cents per week.

4000 x 25 x 11.2 cents = $11,200. Plus Keepsake items =

$920. Total $12,120 per week, $630,240 per year.

Weekly badge charges from the Clean Machine in the case

of 60 active badges using the "low cost" approach would

be $124.80, and using the high cost approach would be

$211.20. There is also an annual 90-badge membership fee

of $1600, which amounts to $31 per week.