Ann: Capricorn to Launch Spenda's Statement technology to Members, page-100

  1. 3,848 Posts.
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    That's not how to work out the year 1 revenue.

    Let's assume they are onboarding the 15,000 members in a linear model (unlikely to be linear, but it keeps things simple), it would look like this:
    Month 1 - 1,250 members x 99 = $123,750
    Month 2 - 2,500 members x 99 = $247,500
    Month 3 - 3,750 members x 99 = $371,250 (i.e. first 1/4 = $742,500 total revenue)
    Month 4 - 5,000 members x 99 = $495,000
    Month 5 - 6,250 members x 99 = $618,750
    Month 6 - 7,500 members x 99 = $742,500 (second 1/4 = $1,856,250 total revenue)
    Month 7 - 8,750 members x 99 = $866,250
    Month 8 - 10,000 members x 99 = $990,000
    Month 9 - 11,250 members x 99 = $1,113,750 (third 1/4 = $2,970,000 total revenue)
    Month 10 - 12,500 members x 99 = $1,237,500
    Month 11 - 13,750 members x 99 = $1,361,250
    Month 12 - 15,000 members x 99 = $1,485,000 (fourth 1/4 = $4,083,750 total revenue)
    Total gross revenue for year 1 = $9,652,500

    Then the starting point for year 2 is minimum $4,455,000 per 1/4.

    This is obviously a simplified revenue calculation based on onboarding 15k members in 12 months, with onboarding evenly amortised across each month.
    So don't start expecting to see $4m+ per quarter from this product from the beginning as that isn't going to happen.
 
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