0 Replies Latest reply: Feb 24, 2010 8:01 AM by Julien Bruchon RSS

    finding the profitability threshold

      Hello,

      I try to figure out how to calculate the number of subscription weeks to get the advertising investments profitable.

      Materials I got is :

      • gross costs (I'm able to drill down to daily basis for each support / campaign)
      • subscription's fare is Z each week
      • records of unsubscriptions over time for each subscription day of last year (see picture attached)
      • those show a quite steady trend over time

      My think is that :

      • I need to determine the right formula for unsubcription rate ; something like "ax² + bx + c = 0 " where x is the number of week
      • then for each week solve "ax² + bx + c = week gross cost "

      Do you think my method is correct ? and can anyone help me make it works ?

      Thanks a lot

       

      Cheers

       

      Julien