Graffiti Revenue Estimation

By | February 3, 2009

Firstly here is my simple excel table on how the revenue numbers was generated that I mentioned in the Graffiti Presentation. One can debate about the numbers and estimations but that is the beauty of having a financial model. A model breaks down assumptions and helps you reach a reasonable value for each of the assumptions thus creating a suitable range of values that you will receive.

One should focus on getting a reasonable output range of values instead of just specific values because there is too much uncertainty in defining specific values. Plus in this case, what is important is how the 4 sources compared relative to each other.

 

Advertising

Talent Sourcing

Memorabilia

Stock Pictures

Number of Users

2,089,000

Percentage of Artist

104,450

Number of Users

2,089,000

Number of graffiti

20,890

Page View Per User

10

Per match fee

$5

% who purchase

1%

% of worthy graffiti

3%

eCPM

$4

No of request

104,450

Avg Purchase Order

$15

Royalty per picture

$6

   

% successful

10%

Margin:

20%

Graffiti’s Commission

20%

       

Royalty Cost:

$4

   

$83,560.00

$52,225.00

$45,958.00

$752.04