Main Street Magazines Formula: Part 2 -- Revenue Model: I want to project the potential income from a duplicable model

over 3 years. The model is a publisher of magazines. I want to have these spread sheets set up for 3 years1 year per sheet.

The base model is: 1 x 1 x 20 x $200 = monthly revenue # of properties x # of magazines x pages of ads x revenue per page = monthly revenue 1 property x 1 magazine x number of 20 ads x $200 = $4,000/mth $48,000/yr

A benchmark model is a property which publishes 5 magazines, each magazine has 20 pages of ads @ $200 per ad, per month in revenue 1 x 5 x 20 x $200 = $20,000/mth $240,000/yr.

I want to project the growth of the model over 36 months. This growth is through the increase number of properties and the number of magazines. Ad revenue remains constant at $200 per page. Assumptions: 1. Each new property will work towards a benchmark model of 5 complete magazines over a six month term. 2. It is assumed that in month 1, 10 ads will be sold; in month 2, 20 ads sold; month 3, 20 ads sold; month 4, 20 ads sold; month 5, 20 ads sold; month 6, 10 ads sold. This would result in having 5 magazines, each with 20 ads, sold over the six month period. 3. Each magazine will have 20 pages of ads. 4. Each ad will generate $200 per month Example: 1 property x 1 magazine x number of pages (20) x $200 = monthly revenue The growth of each property will follow the same pattern.

Growth of magazines: Month 1: magazine HL x 10 ad pages sold x $200 = monthly revenue (10 x $200 = $2000.

Month 2: magazine HL x 20 ad pages x $200 = monthly revenue (20 x $200 = $4000. magazine HG x 10 ad pages x $200 = monthly revenue (10 x $200 = $2000.

Month 3: magazine HL x 20 ad pages x $200 = monthly revenue (20 x $200 = $4000. magazine HG x 20 ad pages x $200 = monthly revenue (20 x $200 = $4000. magazine BD x 10 ad pages x $200 = monthly revenue (10 x $200 = $2000.

Month 4: magazine HL x 20 ad pages x $200 = monthly revenue (20 x $200 = $4000. magazine HG x 20 ad pages x $200 = monthly revenue (20 x $200 = $4000. magazine BD x 20 ad pages x $200 = monthly revenue (20 x $200 = $4000. magazine AL x 10 ad pages x $200 = monthly revenue (10 x $200 = $2000.

Month 5: magazine HL x 20 ad pages x $200 = monthly revenue (20 x $200 = $4000. magazine HG x 20 ad pages x $200 = monthly revenue (20 x $200 = $4000. magazine BD x 20 ad pages x $200 = monthly revenue (20 x $200 = $4000. magazine AL x 20 ad pages x $200 = monthly revenue (20 x $200 = $4000. magazine LS x 10 ad pages x $200 = monthly revenue (10 x $200 = $2000.

Month 6: magazine HL x 20 ad pages x $200 = monthly revenue (20 x $200 = $4000. magazine HG x 20 ad pages x $200 = monthly revenue (20 x $200 = $4000. magazine BD x 20 ad pages x $200 = monthly revenue (20 x $200 = $4000.

magazine AL x 20 ad pages x $200 = monthly revenue (20 x $200 = $4000. magazine LS x 20 ad pages x $200 = monthly revenue (20 x $200 = $4000.

Growth of Properties This sequence is now projected into the financial model so that every month a new property would come on board each month for 24 consecutive months. Example: 5 properties x 5 magazines x 20 ad pages x $200 = monthly revenue 5 x 5 x20 x $200 = $100,000/mth $1,200,000/yr.

Part 2 -- Actual Cash Revenue Model: This is where it gets a bit more challenging although once the formulas are in place it should flow quickly. The above model information is the same, but I want to see what the actual revenue cash flow will look like over the long term. While the model shows each ad page generates $200/mth in revenue, these ad pages are actually invoiced quarterly at $600 a quarter. ($2400 per year). Therefore, the ads sold in month 1 are invoiced at $600, in effect prepaying months 2 # 3. In month 4, the ad is invoiced again at $600, prepaying for months 5 & 6. In month 7, the ad is invoiced again at $600, prepaying for months 8 & 9. In month 10, the ad is invoiced again at $600, prepaying for months11 & 12. And so on for each of the magazines and properties over the 3 year term. All ad sales are treated the same way in effect the residuals accumulate as the properties and magazines are sold.

I want to have this second spread sheet extrapolated over the 3 year term.