Revenue projections

How to arrive at the income side of a new website

[gstick]

I have a concept for an advertising based website site. I have been working on understanding what is offered by Google and others. I have been working on keyword selection. Probable expenses can be sorted out I believe. But income forecasting seem like a blank wall.

Does anyone have a suggestions?

[coopster]

I can offer some general suggestions. In order to project revenues you might want to add to your business plan to consider your

• Target Market.
  1. Think about who you are going to reach and how.
  2. What will those customers/clients be expecting of you?
• Sales Growth
  1. How much will you charge per hour?
  2. How many hours must you work to meet your Sales Projections?
  3. How many hours can you work in a year before you need to reconsider your business plan because of your growth?
  4. If you have to hire, how will that impact your bottom line as the expenses cut into your revenues?
• Service Overview
  1. What can you do? List your Services and Descriptions for yourself.
  2. List your pricing model for yourself and don't forget to include any discounts, bundling or variable pricing model structures.
  3. Chart your Revenue Forecast. If you were to chart your sales less expenses and see it's path on a chart you can have a good idea where things are headed, especially when you parallel chart your actual versus expected.
• Strategy
  1. How will you do it? List your marketing channels such as newspaper, ads, radio, referrals, links, etc.
  2. List your mix of these marketing channels as a percentage so you can chart and plan accordingly.
  3. How will you sell through each of the channels?

Don't forget to review your competitors too. Evaluate who they are and how you will compete and compare to them in market share, effort, price and quality.

And finally, best wishes to you as you follow your plan!

[henry0]

You need to precisely define your BEP
Then as in any new venture you must have a "treasure chest" containing about 1 year of expense and indeed enough to survive while not generating sufficient revenues above your BEP

So again a precise BEP is a must have.

Good Luck

PS)
I am also a consultant in a non-web area
And have seen many biz problems and failures related to over estimating revenues and growth and sub estimating their BEP

[gstick]

HenryO

Thanks for the response.

I take it that BEP means business expense projection?

Your message is a good caution.

In the pre-web world you could estimate sales for a store based on a range of sales per square feet for a certain kind of retail specialty. There are many other models such as the RMA data (The Old Robert Morris Associates). But I have not found a source of such info for website advertising revenue. If you know of any please give me a steer.

[henry0]

gstcik,

I should have precised, sorry.

BEP is an accounting term
it stands for Break Even Point

edit
<<<
BEP only targets biz related expenses
>>>

<<<
also
you need to create your own personal statement:
mention what you own, your debts, your revenue sources.
match the above with your minimum yearly expense:
gas, food, insurance etc...
>>>
only then will you know how much you need to generate