Revenue

These 5 scenarios assume that Coopereesta makes it to the big time. If I only have a few hundred users, I obviously can't afford to hire any paid employees, and little or no profit is achieved. Assume each user generates $1 of ad revenue per year. This is slightly conservative since 5 percent of users see no ads.

1. Minimal scenario: Assume number of converted Coopereesta users is 1,000, conversion rate of 5 percent, 30 Cooperscript developers exist, annual expenses are $10,000 for Google AdWords advertising of 6K and web hosting of 4K. Then gross annual revenue equals 20,000 x (0.05 x 20 + 1) = $40,000, annual expenses equals $10,000, net annual revenue equals 40,000 - 10,000 = $30,000, founder's salary equals 30,000 x 0.05 = $1,500 = $125/month, total annual expenses equals 10,000 + 1,500 = $11,500, total developers' fees equals 40,000 - 11,500 = 28,500, therefore each developer receives 28,500 / 30 = $950/year = $79/month on average.
2. Conservative scenario: Assume number of Coopereesta users is 200,000, conversion rate of 5 percent, 100 Cooperscript developers exist, annual expenses are $10,000 each for both Google AdWords advertising and web hosting. Then gross annual revenue equals 200,000 x (0.05 x 20 + 1) = $400,000, annual expenses equals $20,000, net annual revenue equals 400,000 - 20,000 = $380,000, founder's salary equals 380,000 x 0.05 = $19,000, total annual expenses equals 20,000 + 19,000 = $39,000, total developers' fees equals 400,000 - 39,000 = 361,000, therefore each developer receives 361,000 / 100 = $3,610/year = $301/month on average.
3. Medium scenario: Assume number of Coopereesta users is 500,000, conversion rate of 5 percent, 100 Cooperscript developers exist, annual expenses are $25,000 for Google AdWords advertising of 10K and web hosting of 15K, and employee wages (including founder) happen to equal developers' fees. Let x = total employee wages not including founder, and let y = founder's salary = 5 percent of net revenue. Developers' fees = x + y. Then gross annual revenue equals 500,000 x (0.05 x 20 + 1) = $1,000,000, annual expenses equals $25,000, and the following Equation (A) holds: 1,000,000 - 25,000 = 2(x + y). So net annual revenue equals 1,000,000 - 25,000 - x - y = $975,000 - x - y. Now Equation (B) holds: y = 0.05(975,000 - x - y), or 20y = 975,000 - x - y, or 21y = 975,000 - x, so Equation (B) becomes: x + 21y = 975,000, and Equation (A) is: 975,000 = 2x + 2y = x + 21y. So x = 19y, and 19y + 21y = 975,000, 40y = 975,000, then y = founders salary = $24,375, and employee wages = x = 19y = $463,125, and using Equation (A), developers' fees equal x + y = 975,000 / 2 = $487,500, so each developer receives 487,500 / 100 = $4,875/year = $406/month on average.
4. Optimistic scenario: Assume number of Coopereesta users is 1,000,000, conversion rate of 5 percent, 100 Cooperscript developers exist, annual expenses are $25,000 for Google AdWords advertising of 10K and web hosting of 15K, employee wages one full-time and one part-time add up to $100,000. Then gross annual revenue equals 1,000,000 x (0.05 x 20 + 1) = $2,000,000, annual expenses equals $25,000, let y = founder's salary and let z = net annual revenue equals 2,000,000 - 25,000 - 100,000 - y, or z = $1,875,000 - y. Now y = (0.05)z, and y = 0.05(1,875,000 - y), or 20y = 1,875,000 - y, and 21y = 1,875,000, so y = $89,286, and z = 20y = total developers' fees, so each developer receives 20y / 100 = y / 5 = $17,857/year = $1,488/month on average.
5. Many Employees scenario: Assume everthing in Scenario 4 is the same except each developer receives $3,600/year, several employees exist, and founder's salary equals 10 percent of net revenue instead of 5 percent. Let x = total employee wages except founder, and let y = founder's salary. Net annual revenue equals 2,000,000 - 25,000 - x - y = 1,975,000 - x - y = 360,000 = 3,600(100), founder's salary equals y = (1,975,000 - x - y) / 10, or y = 360,000 / 10 = $36,000, now 1,975,000 - y - x = 360,000, so x = 1,975,000 - 36,000 - 360,000 = $1,579,000.