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Projected Revenue and Expenses

The following simple spreadsheet shows revenue and expense projections for a hypothetical alumni magazine publishing endeavor. It is only a hypothesis and should not be interpreted as indicative of actual revenue, expenses or profits.

Factors School
Publications 4
Alumni 10,000 40,000
Subscribers 10% 1,000 4,000
Member Sites 10% 100 400
Advertisers 100 400
Month Year
Revenue N $
Basic Service 4 $300 300 1,200 14,400
Directory Listings 100 $10 1,000 4,000 48,000
Banners/Displays 10 $50 500 2,000 24,000
Creative Services 10 $100 1,000 4,000 4,000
Alumni 4,000 $1 1,000 4,000 48,000
Member Sites 400 $10 1,000 4,000 48,000
Total Revenue 4,800 19,200 $230,400
Operating Expenses
Publishing (AMS)
Basic 4 $125 $500 $6,000
Alumni Directory 4,000 $0.10 100 400 4,800
Member Sites 400 $7.50 750 3,000 36,000
Business Dir. 400 $1 100 400 4,800
(hrs/school.; hr.rate) 40 $25 1,000 4,000 48,000
Total Expenses 2,075 8,300 $99,600
Net from Operations 2,725 10,900 $130,800
Rent & Utilities 500 6,000
Phone & Internet 300 3,600
Computers & Furnishings 300 3,600
Total Overhead 1,100 13,200
Net Income 9,800 117,600
Alumni Assn. Split 50% 58,800
Publisher Net Income $58,800
If publisher acts as editor, then add back the editing fees from expenses, making the annual net income of the single-operator approximately $106,800!

Scenario: You operate four magazines. Each school has 10,000 alumni with only ten percent subscribing. You and each alumni group recruit 100 advertisers, of whom only ten percent upgrade to a display ad and/or other services. (These are very restrictive assumptions.)

Monthly Revenue: Your 100 sponsors per publication pay $10 per month for directory listings, and the 10 major sponsors pay $50 each for their display ads and $100 each for artwork as a contribution2 to the "Alumni Fund" or other non-profit purpose set up by the participating association. The alumni subscribers contribute $1 per month, and those who upgrade to a personal site donate $10 per month. Total revenue per publication is $4,8001. This extends to $230,400 per year.

Monthly Operating Expenses: Your monthly publishing cost (Alumni Management Services) is $125 plus $7.50 per month for each user site, ten cents per member listing and one dollar per business listing.Your estimated hourly cost for editorial services is $25, and it takes an estimated forty hours per publication to manage all text and graphics and to set up advertisements. Total operating expenses per publication are $2,075 per month or $99,600 per year.

Annual net income from operations (revenue minus expenses) is $130,800 per year, which is approximately $32,700 per publication.

Overhead: Overhead will vary by region; you can project it better than we can, based on your local costs. Revise the projection to suit your local expectations.

The hypothetical net monthly income for a publisher with four associated magazines is $9,800 or an annual total of $117,600. Assuming you split this amount with your associations, you'll have a net annual income of $58,800. AND you'll help each association build its own revenue significantly - enough to provide some excellent scholarships or to repaint the gym floor, as they choose.

Of course, if you also perform the editing and pay yourself, you'll also retain all or part of the monthly editing wages. That raises your potential annual income to $106,800.

1 Actual receipts may be substantially less, especially during the first year.
2 No representation is made regarding the tax rules for contributions to alumni associations.
3 Net monthly income before taxes, and ignoring locally variable expenses not directly related to the project. Revenue and profitablility are entirely a function of sales effort by the individual publishers and associations and are not guaranteed.
4 A setup fee is required for each new publication. The fee ranges upward from $500 and depends on the publishing product and the amount of customization requested. The affiliate may pass this on to the client association with or without markup.
5 Publishing costs are based on our Sitemaker service. Add approximately $1,000 setup and $200 monthly for Journalmaker.