Pricing Model: Journalist Income Simulation (1 Year)

Journalist Income Simulation (1 Year)

This document presents a hypothetical simulation modeling the potential supplementary income for a single journalist over 12 months using the Youseddit Smart Contract Pricing Model. Unlike the static assessment, this simulation considers the cumulative effect of adding new quotes each month and the price decay impacting revenue from older quotes.

Disclaimer: This simulation uses simplified assumptions for quote characteristics, price decay, and licensing patterns. Actual income depends heavily on real-world factors.

Simulation Assumptions

• Base New Quotes Added: 20 per month.
• Base Initial Quote Price (Avg): $15.00 per license (Based on BasePrice=$3, F_time=5.0, F_cat=1.0, F_rel=1.0).
• Journalist’s Share: 90%.
• Base Initial Revenue per License: $15.00 * 90% = $13.50.
• Price Decay Function: F_time(t) = max(0.5, 5.0 * e^(-0.05 * t)), where t is days since quote creation. The price multiplier decays relative to the initial multiplier (5.0).
• Base Licensing Pattern (Avg per Quote):
  • Month 1 (Avg Age ~15 days): 3 licenses purchased.
  • Month 2 (Avg Age ~45 days): 2 licenses purchased.
  • Month 3 onwards: 0 licenses purchased (Total 5 licenses per quote).
• Base Revenue Calculation:
  • Month 1 Revenue/License ≈ $13.50 * (F_time(15) / F_time(0)) ≈ $13.50 * (2.36 / 5.0) ≈ $6.37
  • Month 2 Revenue/License ≈ $13.50 * (F_time(45) / F_time(0)) ≈ $13.50 * (0.53 / 5.0) ≈ $1.43
• Seasonality / Event Adjustments:
  • Summer Dip (July, Aug): 50% reduction in new quotes added AND 50% reduction in licenses purchased.
  • Winter Holiday Dip (Dec): 30% reduction in new quotes added AND 30% reduction in licenses purchased.
  • Event Spikes (Mar, Apr, Oct, Nov): Base quote production, but 25% increase in licenses purchased.
• Assumed Base Monthly Salary: $5,417 (approx. $65k/year, for visualization).¹

Monthly Income Simulation

Conclusion

Under these revised simulation assumptions (including seasonality and event spikes):

• The journalist’s supplementary income fluctuates significantly, peaking during event spikes (~$550/month) and dropping during seasonal dips (~$110-125/month).
• The total estimated supplementary income over 12 months is approximately $4,800.

This dynamic simulation yields a lower annual income than the static “Medium Pickup” estimate ($16,200) because it accounts for price decay. The inclusion of seasonality further reduces the total compared to the non-seasonal simulation (~$5,200) due to the significant impact of the summer dip.

This highlights the sensitivity of income potential to:

• Timing of Licenses: How quickly quotes are licensed after publication significantly impacts revenue due to price decay.
• Decay Rate: A slower decay rate would increase income.
• Licensing Volume: More licenses per quote directly increase income.
• Initial Quote Value: Higher initial multipliers (from relevance, category) increase income.