How to estimate the cost revenue of the website

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Advertising revenue according to PageView calculation

In fact, when the number of critical users is estimated, the cost and revenue are generally determined. In the income section, mainly depends on the commercial model is mainly based on advertising revenue or the user charges mainly (such as VIP user monthly fee, sales virtual props), or both.

In fact, it is difficult to charge users in some markets, such as white-collar workers, and some markets have a user base where advertisers are not interested but have high potential for charging, such as blue collar. It is difficult to balance the two types of income, especially Web 2.0, which is highly relevant to the population.

In addition, there is a conflict between pleasing the user and pleasing The advertiser. People who spend money on advertising, of course, think that advertising is bigger and more eye-catching, but it may cause interference to user's use. So when you decide to please advertisers, the less likely you are to charge users, and vice versa.

Originally we should estimate the proportion of the income, but this is too hasty, or let us start from the base. First of all, the average user can be estimated each month to create the PageView, the month by the "average number of users," can be the full station of the month PageView number.

For example: the site on April 30, the number of users on the day is 100,000, and May 31 the day is 140,000 (obviously added 40,000 users in May), if the estimate of each user's monthly page browsing volume PageView is 20 pages, then the whole station in May PageView is:

[(+)/2] x 20 = 2.4 million PageView

Suppose the total station page has 80% to put Google AdSense or ad league ads, if according to the ads click 0.1% calculation, can calculate how many times per month ad clicks. Because each click average can earn how much money is the industry market, advertising revenue can be calculated.

Estimate the proportion of paid users to total users

The above advertising revenue is a bottom line. Suppose a start-up has no intention of configuring an ad salesperson at first, or if the number of users is eye, you have at least this income. When it's bigger, you can expect to sell more expensive ads.

The key is, "How do you estimate the average per user's monthly browsing pageview"? " Still, see if your site belongs to "tool-type","content" or "community type". These types of sites have a number of such values that can be queried by industry experience.

The average number of pageview per user may be similar in each of these different types of websites, but the content may be different. A search engine like Google, which has only two pages per visit, may come several times a day, while a community site may be just the opposite.

Again, we talked about the possibility of charging users. The simplest approach is to divide the functional area into free and paid fees, and to charge users with the same status as Platinum users, diamond users, etc.

At this point we want to estimate the "monthly pay users to account for the proportion of the average user." In general, this number is good if it exceeds 3%. The next estimate is "how much each user spends on average per month". By multiplying two digits, you can calculate the monthly revenue for the user.

The operator will start to weigh the amount of resources to be spent on paying users. Or do not charge, sprint advertising revenue to forget? Since the proportion of paid users is fixed, how many sprint users can increase revenue? However, Sprint more users, there is a large advertising overhead?

Cost estimates for advocacy and overhead

When you think about the income and then think about the cost, congratulations, your idea is closer to reality. In fact, the cost of internet companies can generally be divided into a few big chunks: publicity, bandwidth, other (including Personnel management office rent, etc., which is not covered in this article).

Perhaps the best way to promote the economy is to buy ads from Google AdWords or the ad league. Pay-per-click, also paid for by effect, suitable for start-ups. Click to multiply the conversion rate to get the number of users, one months how much money spent is very clear.

As for bandwidth costs, you first need to estimate how much traffic the user consumes. We know the average number of pageview per person per month, as long as the "average number of Kbytes per page", and then multiply "when the monthly number of users," the current month flow is out (should be GB).

ISP manufacturers calculate the bandwidth flow price in two ways, if the water pipe and water to analogy, one is to limit the monthly flow of water, such as 120G Bytes. One is to limit the weight of pipes, such as 1M Bits, and the thinner the pipe Web site is, the easier it is to use traffic jams.

How wide is the water pipe? For example: Assume that the total monthly flow of 120GB, and these flows in fact, 45% concentrated in 10 days per month, and daily traffic in fact, 50% is occurring in 8 hours a day. To cope with spikes, you will need 0.768M Bits of bandwidth per second.

{[(45% x) x 50%]/(8 x x)} x 1024 x 8

The above bandwidth estimate is calculated as a general HTML page, if the site is a large number of photo videos uploaded download that is another matter. The calculation is to estimate the average number of uploaded downloads/videos per user, but the business is probably hard to do without the ISP price concessions.

The formation of the strategy, in these projections

That's a lot of work. I believe this will be a question for some people. To be honest, it seems that most of the people who are successful on the internet are not. Sometimes entrepreneurship is really a guts, perhaps it is the place to attract adventurers.

However, if you are not only on the blog to write ideas on the discussion, but to sell inherited sell the house to sell cars to start a business, it is really not bad for you to think clearly. It is the hero who burns the money, the one who loses it. (To see whose money to burn ...) Cough）

The internet is a semi traditional industry, using the accumulated experience of predecessors to estimate, improve their winning is good. Think of the way to reduce bandwidth costs, think of viral marketing the trick to save the promotion costs, or some money to the initial advertising. The formation of the strategy is in these projections.

At the end of this paper, the author of the Excel calculation table, you can according to their own career state changes in private use, Mino want to be thinking about the people who want to start a business.