1Sub.dev

# Economic calculations

## Will I make more money with 1Sub?

Maybe you are a developer and you already request money for downloading your software and the most important question for you right now is: will I make more money with 1Sub? We can't know that obviously, but what we can do is to make assumptions and calculations.

Let's say there are 10 software projects that people can subscribe to (with traditional 1-to-1 subscriptions, without 1Sub). The total number of subscribers that subscribe to at least one of these projects is Sa. Most people probably subscribe to only one project but let's say that some subscribe to multiple projects. Let na be the average number of projects (of these 10) a subscriber subscribes to. Then the total number of subscriptions is:

Sa · na

If these projects used 1Sub so that users got access to all 10 projects for their subscription, then nobody would subscribe to more than one project so we can assume that nb=1, but let's say the number of subscribers Sb would be higher because the subscriptions are now worth more. The total number of subscriptions is now:

Sb · nb = Sa · Sb/Sa · nb

In order to sell the same number of subscriptions with 1Sub as with traditional subscriptions, this equation has to be true:

Sa · na = Sa · Sb/Sa · nb

We can simplify by dividing by Sa and remove nb which is 1, and we get:

Sb/Sa = na

That means that if using 1Sub causes the number of subscribers to grow by more than the average number of subscriptions a subscriber has without 1Sub, then using 1Sub should give the average developer more money if subscriptions cost the same.

## What does a subscription have to cost?

Let's say a developer wants a monthly salary L. If a subscription is sold for X money per month then they need S = L / X subscribers per developer (person).

For example, if you want L=\$4000 per month you need either:

• if you want a subscription to cost X=\$5 per month, sell 4000/5 = 800 subscriptions.
• if you have only S=100 subscribers, it would have to cost L/S = 4000/100 = \$40 per month, or if that's too much, you can sell it for \$5 and get S·X = \$500 per month.