Blume Financial Plan
Circulation: 200k Newsstand: 150k Subscription: 50k Salaries: Editor-in-Chief: $50,000 Creative Director: $45,000 Web Editor: $40,000 Design Assistant: $30,000 Managing Editor: $45,000 Senior Editor: $40,000 Editorial Assistant: $30,000 Administrative assistant: $25,000 Editorial salary total: $305,000 Publisher: $137,597
$75,000 + 1% total ad sales commission ($62,597)
Ad Director: $102,597 $40,000 + 1% total ad sales commission ($62,597)
Ad Salesperson: $76,628.50 $25,000 + commission, assuming 30% of print ad sales, 3% commission ($51,628.50)
Ad Salesperson: $76,628.50 $25,000 + commission, assuming 30% of print ad sales, 3% commission ($51,628.50)
Web Salesperson: $77,320 $25,000 + 10% ad sales commission ($52,320)
Circulation Director: $95,000 $40,000 + 1% subscription/newsstand revenue commission ($55,000)
Marketing Communications Coordinator: $40,000 Publishing salary total: $605,771 Total full-time salaries: $910,771 Freelance budget: Editorial: 18,000 words per print issue, average $1.50/word, 4 issues: $108,000
Online editorial: $10,000
10 stories/week, 2 hours/story, $9/hour
Photography: $100,000
Average $125/hour, 800 hours/year
Total freelance: $218,000
Total Salaries: $1,128,771 One-time expenses: Computer equipment: $18,750 15 full-time employees; freelancers/interns use own equipment
Server: $500 MAC OS X Server, unlimited client licenses
Adobe Creative Suite: $13,600 8 computers, $1,700 per license
Other software: $1,500 15 computers, average $100/computer
Furniture: $30,000 Launch party: $3,000
Total one-time expenses: $67,350 Publishing and Distribution: Printing 500,000 x $0.50 x 4 issues: $1,000,000
Postage 50,000 x $0.30 x 4 issues: $60,000
Bulk Distribution 5,625 boxes of 80 magazines x $5 each x 4 issues: $112,500
Fulfillment House 50,000 magazines x $0.20 x 4 issues: $40,000
Direct Mail (one-time expense): 750,000 1,500,000 pieces; 1500 orders, 1000 pieces/order, $500/order, 3.33% return
Return Postage (one-time expense): $25,000 $0.50/returned piece, 50,000 returned pieces
Publishing and Distribution Total: $1,987,500 General/Administrative Accounting (per year): $10,000 Legal (per year): $10,000 Medical Insurance (15 employees): $22,500 Phone (15 employees): $18,800 Supplies (15 employees): $11,250
Web hosting: $96 $8/month
IT Support: $12,000 $1,000 monthly support
Office rent: $120,000 $10,000/month, 12 months, based on space in Denver Payroll Taxes: $91,077.10 Other Taxes: (1% of revenue): $117,597
Total General/Administrative: $413,320.10
Revenues Print Advertising: First and Second issues (25/75 ad/edit ratio on 120 pages at $35,000 full-page) 30 pages of ads Inside Front Cover: $42,000 Inside Back Cover: $42,000 Outside Back Cover: $43,750 Specified position (5 x $36,750): $183,750 22 Full-Page Ads: (22 x $35,000): $770,000 Advertising Revenue at 25/75 ratio: $1,081,500
(x2 for two issues): $2,163,000 Third and Fourth issues (35/65 ad/edit ratio on 145 pages at $35,000 full-page) 50 pages of ads Inside Front Cover: $42,000 Inside Back Cover: $42,000 Outside Back Cover: $43,750 Specified position (8 at $36,750): $294,000 39 Full-Page Ads (39 x $35,000): $1,365,000 Advertising Revenue at 35/65 ratio: $1,786,750
(x2 for two issues): $3,573,500 Total first year print ad revenue: $5,736,500 Web advertising (5) Monthly leaderboard x 2,000: $10,000 (x 12 months): $120,000 (8) Monthly skyscraper x 1,500: $12,000 (x 12 months): $144,000 (2) Monthly MPU x 800: $1,600 (x 12 months): $19,200 (5) Monthly Gallery Interstitial x 4,000: $20,000 (x 12 months): $240,000 Total Web Ads: $523,200
Total Ads: $6,259,700 Newsstand Revenue Print copies: $7,200,000 150,000 copies/issue, 4 issues/year, $12/issue Revenue before payment to distributor and retailer: $7,200,000 After payment to distributor and retailer: $3,600,000
Newsstand total: $3,600,000 Subscription Revenue Subscriptions: $1,900,000 50,000 subscriptions, $38/subscription, 4 issues/year
Subscription Total: $1,900,000 Revenue: Subscription: $1,900,000 Newsstand: $3,600,000 Advertising: $6,259,700 Total: $11,759,700 Expenses: Salaries: $1,128,771 General/Admin: $413,320.10 One-time: $67,350 Publishing and Distribution: $1,987,500 Total: $3,596,941.10 Net Profit: $8,162,758.9