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Old 07-20-2009, 10:25 AM   #2 (permalink)
GregK
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Join Date: Feb 1975
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Default Re: newbie questions

Hally,
Here is a good way to go about that. If you go to a network like CJ or even if you just contact and affiliate manager you should be able to find out a EPC, which is the average amount of money made per click, sometimes this EPC is actually earnings per 100 clicks so you have to be careful there. Then you can find out an average click rate of your site, say 5-10%, but it might be different for your industry. The final and most vague part is a traffic estimate. For this, find a few competitor sites that are similar in nature and go to compete.com. You should be able to get an idea of how many people go to their site per month and you can work from there. Finally, just multiply traffic x % click x EPC/100 and you should have an idea of your monthly revenue that is suitable for a business plan. Of course you will see in the real world, the numbers will be much different, but speaking from past business plan success, I can tell you that with numbers, they are mainly concerned that you have looked into it and have some sort of reasoning for your estimates, they make loans knowing some people will be under and some over.

You might also want to talk to HCG, he frequents these forums and is a big believer in website business plans, he might have some additional advice for you there.
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