Subscriber Models

Here is a simple subscriber model that lets you to easily forecast multiple subscriber types. It uses a new feature of Sumwise called Modelets that makes it really easy to edit, reorder and add new subscriber types.

Acitve Model Description can go here

About This Model

This subscriber model lets you forecast your subscriber numbers for multiple subscriber types according to the equation C = O + A – D, where C=Closing, O=Opening, A=Additions and D=Disconnections.

Typically disconnections is calculated via a churn percentage assumption and is expressed as D = (O + C) / 2 * P, where P=Churn Percentage.

This template deals with only one subscriber type (labelled “A” in this model), but with Sumwise’s modelets feature, it is very easy to add new subscribers types, and reorder and rename these types. We suggest you watch the 2 minute demo video to see how this works, but if you don’t like reading manuals you’re welcome to jump right in and try inserting a new row above or below “A” to see what happens.

About the Disconnections Equation

If you’ve reviewed this model carefully you’ll probably want to know how disconnections are being calculated. As mentioned above, typically the churn percentage is expressed as a percentage of average subscribers for the period. Therefore churn is a percentage of (Opening+Closing)/2. But, Closing is affected by disconnections, so we have a classic circularity in this calculation. We have solved this problem with some simple algebra so that disconnections is calculated without reference to closing subscribers.

In this model disconnections is calculated as:

-(Churn Percentage*(2*Opening+Additions))/(Churn Percentage+2)

For more about this method of solving circular references read this blog post.

About Sumwise

Sumwise is a new type of online spreadsheet designed specifically for financial modeling. Current spreadsheet technologies (like Excel and Google Docs) are powerful and flexible, but they are also unstructured and error prone. And spreadsheets, once built, are not easy to modify or extend.

Sumwise addresses all of these problems with clever features like: user defined row and column names; rows and columns that can be tagged with meaningful keywords; and cell groups that share a common formula and formatting across a range a related cells.

Sumwise was invented and developed by a small dedicated team of software developers and spreadsheet experts in Sydney, Australia. If you’re interested in learning more please visit our website or send us an email.

Do you have any ideas for other Really Useful Models?
Please visit our support site and let us know.

Helpful Videos

Subscriber Models

by Darren Miller

Subscriber models.


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