Recently I wrote about how to project your revenue for 2015. The example I used was a bit simplistic. It only included one source of revenue – client research. In reality most genealogy professional wear many hats. We are client researchers, speakers, writers, editors, authors, bloggers and much more.
How do we project our revenue when we have multiple income streams? Let’s walk through it. Let’s say you made $18,000 from genealogy income in 2014. Here’s how it might have broken down:
|Affiliate income||$ 540|
This is a good break down but to help us make it useful for 2015 we need the percentages. That way we can use the percentages to determine projected income in each category for 2015.
For instance, if we divide $14,400 by $18,000 (yes, use your calculator!) we get a result of 0.8 which is the equivalent of 80%. That means 80% of all revenue earned in 2014 came from client research.
If we divide all the other numbers also by $18,000 we learn that speaking was 10% of the total income, writing was 7% and affiliate income was 3%.
Our chart now looks like this:
|2014 revenue:||$18,000||Percentage of total income|
|Affiliate income||$ 540||3%|
Let’s say in 2015 you’d like to make $22,000. Keep your percentages the same. Here’s your new chart:
To find your new target revenue take $22,000 and times it by the percentage (.80, .10, .07 and .03). So in the case of client research $22,000 times .80 will equal $17,600. That’s a $3,200 increase from 2014. Work your way through the chart to determine your projected revenue for the other revenue streams. The chart will look like this in the end:
|Affiliate income||$ 660||3%|
This is great because you now have a concrete dollar figure to work toward. These are your revenue goals for 2015. But it’s not as simple as that, is it? In order to achieve the new revenue target for 2015 we’ll have to have a plan to help you achieve this goal. We’ll work on that in the next blog post!