03
Graffiti Revenue Estimation
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 |
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|
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% |
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|
Royalty Cost: |
$4 |
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|
$83,560.00 |
$52,225.00 |
$45,958.00 |
$752.04 |
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