SALES IN UNITS SECTION INSTRUCTIONS

Calculate PPC clicks:

Notice that the Initial Number of Clicks Per Month is already included in the Assumptions area of the worksheet.

Assume that the number of clicks will increase each month based on the Growth Rate Per Month as stated in the Assumptions area.

Enter a formula in the cell for January PPC Clicks that is equal to the Initial Number of Clicks Per Month. $[=$InitialClicks$]->$ the Jan value is $750$

Enter a formula in the cell for February PPC Clicks that increases the PPC clicks for January by the growth rate per month. Remember to add the increase for the month to the previous month. D$20$ is $[=$C$20+($C$20*$GrowthRate$)]->$ the Feb value is $752$

Copy the Feb formula across to December $->$ the Dec value is $775.$

Calculate Number of Cakes Sold

Assume the number of cakes sold will be some percentage of the number of clicks on the web page. In a web business, a conversion is when the viewer does what you want them to do$.$ For example, a conversion is when a viewer buys a cake.

Enter a formula in the January column that calculates the number of cakes expected to be sold each month by multiplying the PPC clicks times the conversion rate. $[=($C$20*$ConvRate$)]->$ the Jan value is $75.$

Copy the January formula across to December $->$ The Dec value is $78.$

Calculate New Subscriptions this Month

It is reasonable to think that not everyone who buys a cake will also subscribe.

Enter a formula in the January column that calculates the number of new subscriptions expected to be sold that month $->$ the Jan value is $6.$

Copy the January formula across to December $->$ the Dec value is also $6.$

Since the numbers are so small, the subscriptions only increase by around $2$ hundredths each month. Since these are estimates, it$$s okay to have parts of a whole expressed as decimals. We are only hiding the decimals on the spreadsheet to make it easier to read.

Do not round your results because the hidden decimals have a significant impact on the calculations over time.

Subscriptions Ended this Month formula is calculated for you.

It is reasonable to think that those who subscribe will not subscribe every month. Eventually, they will end their subscription. The projections are averages, as one person may end their subscription after one month and another may subscribe for three years.

This is a complicated formula, so it has been created for you based on the Average Number of Months Subscribed. Do not change, copy, or erase any of the cells in this row! $($You may want to look at the formula and try to figure out how it works.$)$

The January value is zero, seen as a dash $(-),$ and the Dec value is $6.$

Calculate Active Number of Subscriptions

Enter a formula in January that starts with the anticipated number of subscriptions from the previous month, add the anticipated new subscriptions in the current month, and subtract the number of subscriptions that will end in the current month $->$ the Jan value is $6.($Even though the previous month for the Jan formula represents a blank Dec cell as Jan is the start of the projections, still include that cell reference in the formula so it copies forward correctly.$)$

Copy the January formula across to December $->$ the Dec value is $37.$

The goal is to have the active number of subscriptions grow over time.