Newsletter 5 year financial model template
I created a 5 year financial model in google sheets that individual newsletter creators might find helpful.
It has different line items for types of revenue and costs that your newsletter might have, and gives you some idea of what run rate economics might be.
Anyone can make a copy of it so feel free to play around. The full context for the model and assumptions can be found in this post here and the model itself is here
Trending on Indie Hackers
Interesting model.
Do you have examples of newsletters selling with these kind of multiples? I haven’t seen any but would like to look deeper.
Even after your 50% haircut, 10x earnings seems incredibly high for a business doing $30K annual income. I know content sites are selling for 2-4x multiples so maybe higher end of that if memberships. Even pushing 5x?
Would be very happy if 10x was an achievable multiple.
In this case the model's terminal value is using the perpetuity method, which is very sensitive to perpetuity assumptions. If I had to make one recommendation, it would to value to terminal cashflow using a multiple, rather than a perpetuity. Otherwise, the model is a good one as it adequately serves the 2 main purposes of a financial model: save time & simplify/make better decisions. I am working on a youtube channel focusing on financial modeling for entrepreneurs, so let me know if there are any topics you've like me to cover.
Yeah, I don't think most would get 10x, feel it's way too high. Especially with individual creators, the key man risk when taking over means unlikely anyone will pay up.
The ones I've heard privately that get anywhere in the ballpark of 10x were larger, and had something else beyond the subscription model e.g. customer data software that formed the bulk of the valuation.
I suppose maybe that implies a huge haircut? Couldn't get the numbers to work given that the terminal growth implied valuation is what it is, and the assumptions there look reasonable.
Hopefully we see some real examples and get transparency to the multiples.