Initial Estimate on Cost / Advertising - 1/26/2000

Connection Charges - Earthlink

	To: jeffv
	CC: me
	Subject: very preliminary money:
	--text follows this line--
	You can share this with pam.
	
	Likeminds does 24k page views / day.
	I estimate average page 20k.
	That's 480G / day.
	At earthlink (only data i have) that would cost
		$720/month.
	
	Disk space:
	Likeminds.com says 1G is needed.
	At earthlink, that's $75/month.
	
	Then there's the $20/month of montly fee.
	
	Total $815/month.
	
	Can we make $815/month in advertising with 24k page views
	per day.
	
	These are just first guess numbers - actual numbers will be
	different. 

Connection Charges - ValueWeb

$50/month

200MB storage included

7GB transfer included

4c/mb * (480-7)G = 4 * 473 = 1892000c/mo = $20k/month!!!!!

Likeminds Cost

$75k start up cost.

$25k/year = $2k/month.

Total Costs

$3k/month = $2k/month likeminds + $815 connection

Advertising Income

I got some fees from theHungerSite sponsoring page (local copy at ../civic/ths_sponsoring.html).

3.5 c/impression (ths costs .5 c/impression).

click thru rates are .5% (1 in 200).

at 24k page views per day, that's 24k banner impressions / day, which is 720k impressions / month.

We need to make $815 / month.

$815/720k = .113c/impression.

We'd have to charge .113 c / impression, much much much less than the going rate (on jun 1, 1999), and much much less than the theHungerSite.

If we considered all costs,

$3k/month total costs. $3k/720k = .417 c/day, at tehHungerSite level but much less than the going rate.

If we charged the going rate,

720k impressions / month * 3.5c/impression = $25k / month - $300/ year.

ClickThru Purchase Revenue

Total cost $35k / year.

We get, say, 5% of click thru sales. $35k/5% = $700k. Thus we need $700k click thru sales / year.

If our average client buys $50 on line per year, that's 14k clients that we need.

Monthly,

$2k clients buying $30 per month yeilds $60k / month = $700k / year.

To revenue $1M, we need 200k clients buying $100 / year = $20M in purchase, of which we get 5% which is $1M revenu.

• each to each (eachtoeach.html)

John Kumpf
Alpha Verification Tools
Compaq Computer Corporation / Formerly DIGITAL
       email:  john@kumpf.org
               kumpf@segsrv.hlo.dec.com
   alternate:  john.kumpf@compaq.com
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phone:  908.431.0682