Cashflow – Track The Ball per game
We have presented the figures in this way to demonstrate how few people we need to get our money back in each game, and how profitable it will be if we can attract a few more. We think these figures are very pessimistic in every column.
The two sets of figures for each game are indicative of a “break-even” scenario and one, still conservative, in which, hopefully, we have been able to show the potential profit from the game.
Here is the “step-by-step” calculations for the first line of the graphic, which will most easily explain how we have arrived at the figures shown.
Assuming an “average” player will be prepared to spend $10 (which will buy them 100 turns), we have reckoned on attracting the bare minimum of just 250 players.
This would mean a total of 25,000 turns at 10c per turn, giving revenue of $2,500. Take out the GST which, apparently will be owing, and that will leave $2,272.73. I have reckoned on losing as much as 15 per cent of the ticket price in discounting and giveaway, so taking 85 per cent of that leaves $1931.82 and removing 35 per
cent for the prizemoney ($676.14) leaves $1255.68.
Then there are the fixed costs – we have allowed $500 per game for the graphics work (leaves $755.68), $500 for the initial, or seed, prizemoney ($255.68), and $200 for administration and overhead (if we were to start a new 10c game 360 times a year and a $1 game 50 times a year, that would be $82,000), and we’re left with $55.68, or “break-even”.
Each line has been calculated using the same logic.
We have included GST as a precaution, since it is now due to be introduced in July next year. If it doesn’t happen, it’s a bonus.
It’s important to remember that just one player will win each game, and they will do so by persisting through several hundred turns. It makes no difference to their experience in the game whether, at the end of the competition, there have been 100 other turns, or 1 million other turns… in other words, more total turns does not, in itself, mean the puzzle will be solved more quickly.
We hope to excite enough interest to start a new 10c game every day, and a new $1 game at least once a week.
We believe the interest is already there – botb.com, a UK site where Spot The Ball players can win a car reported revenue in the past financial year of £10.81 million, up 7 per cent on the previous year.