I’ve been working on a Business Plan for a couple of months. I’m going for the warts-and-all Business Plan. Figures are projected for 3 years, I have an optimistic, a pessimistic and a target scenario.
I’ve developed extensive spreadsheets (I’ve got about 15 pages of spreadsheets) including cash flow projections, profit and loss projections, etc. And I tweak and tweak and tweak to try and reach a plausible level of realitity in my figures. There’s no point if I’m not being realistic.
I don’t want to give away all the details, but here’s a very basic description.
Firstly, earn revenue to sustain effort on Ambisonia
Secondly, allow contributors to earn revenue so they can sustain their efforts in creating ambisonic work.
Thirdly, make ambisonics as accessible as possible to new audiences.
I have slated 4 revenue streams. Listed here in order of deployment.
1. Premium Accounts (at $5 / month). The principle revenue stream. More on these in an other blog post.
2. Tips … sustenance for the contributors (70% of tips go directly to contributor)
3. Advertising. I dont want to depend on advertising revenue. It is potentially volatile and unpredictable (from the point of view of the ad-space retailer)
4. Affiliate sales. A bit of extra income.
Long term, direct sales of surround hardware is an option.
Required Traffic volume for break-even point.
Targeted projections model Ambisonia reaching its break-even point at around 150,000 visitors per month. By ‘break-even’ I mean that I will be able to afford to work full time on Ambisonia.
Targeted projections model that 150,000 visitors a month being achieved in July 2010 (that’s in about 24 months).
If my calculations are in the ‘realistic’ ball park, then once I’ve reached the 150,000 visitors / month mark, Ambisonia should be generating around $1900/month in revenue for contributors. I’d say there’s potentially an error factor of 2 in that figure.
These firgures refer to the ‘target’ projections. Optimistic projections model reaching the break-even point at just after 1 year. In my pessimistic projections, the break even point is not reached in 3 years.