We’ve spent some time putting together “revenue projections” spreadsheets in the last month or so. It’s an interesting exercise– try to put together some reasonable assumptions about the business, project that over 5 years, and take some educated guesses about how about how much that will be worth to advertisers/partners etc.
Like most sites, our revenue is a direct correlation to our traffic–no surprise there. I’ve found that it’s fun to play around with the spreadsheets to see how much an effect traffic has on our potential business. Apparently, I’m not the only one who has had fun messing with numbers. This blogger put together a potential revenue spreadsheet for YouTube (pre-acquisition). I think the most amusing thing to me about this spreadsheet is the “80% monetizeable” number. Um, I doubt it. There are too many YouTube alternatives to keep an audience around if you force them to watch commericals. I think it’s probably closer to 30-40%.
We’ve put together a revenue model for MyPunchbowl that we think is conservative– but attainable if we fulfill the vision of providing a great user experience. And no, it’s not just ad revenue– but more on that another day.
Throw your next party using MyPunchbowl!