Back of the napkin revenue numbers

14 August 2014 #revenue #gamedev #startup #FRVR

Yohami asked an incredibly good question on my original post introducing the hobby startup.

250K out of advertising sounds like a lot. How much traffic do you need to reach that number?

Let us do some back of the napkin calculations and try to answer that.

1. My effective expenses will likely normalize around 20% requiring me to make $300k top line to reach the $250k profit goal. 
2. I will therefore need an average daily revenue of $821.92.
3. I expect the average game session to create 3 advertisement views.
4. According to this post the average RPM for games ranges from $0.35 - $2.50.

Factoring all that in; I need between 109589 DAU to 782780 DAU to reach my revenue goal, depending on how well advertisement works in my games.