Tuesday, June 4, 2013

Revenue Modeling 101...continued...continued...



Moving ahead in our little foray into the wonderful world of revenue modeling, we turn next to transaction revenue modeling.  Looking back at our text for this course (AKA: 4 Revenue Models & Examples for Small Businesses from www.plantostart.com) “…transaction based revenue models are based on predictable sales of goods.”  This seems pretty straight forward, I might not even need to go to Google or Wikipedia to apply this one to Cardio Kung Fu.

Goods, or as I’ll refer to them, products, are a ways off for CKF right now but they are in the plan.  We’re talking DVD’s, hand weights, apparel, and the list goes on.  So transaction revenue will eventually be a part of the CKF revenue model.  What remains to be seen is how big a part of the model it will be.  The phrase “predictable sales of goods” leads me to believe that I’ll need to gather some data in order to come up with a predictable forecast in terms of the transaction part of my revenue model.  While I might not have needed to go to Google or Wikipedia to apply the transaction revenue model to CKF, I predict a visit to Amazon to buy a book on forecasting in my near future…see how I did that?!

Before I make that trip to Amazon though, I’m going to dig a little deeper into the next model, project revenue. 

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