Turning your Big Idea into a Business

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6 recomendaciones•891 vistas

A look at different web app business models including advertising, freemium and subscription, and the choices that startups face when trying to generate revenue from an application.

Tecnología Empresariales

Turning your idea into a business
Roan Lavery

Thursday, 28 May 2009

Who needs a business model anyway?

- Dick Costello, Feedburner

http://www.burningdoor.com/askthewizard/
Thursday, 28 May 2009

Who needs a business model anyway?

- Dick Costello, Feedburner

“With this kind of traffic, we'll figure it out”
- John Doerr, Google Board

http://www.burningdoor.com/askthewizard/
Thursday, 28 May 2009

Web app business models Advertising
34%

Payments
32%

Subscription
14%

Long game
6% 3rd party supported
14%
http://www.boxuk.com/blog/monetizing-your-web-app-business-models
Thursday, 28 May 2009

The psychology of free

Thursday, 28 May 2009

Free love?
Critical mass
Advertising down
User costs
Bandwidth
Storage
Support
Scaling

Thursday, 28 May 2009

“The problem with free is that every time you double the size of
your database the cost of maintaining the site grows 6 fold. The
bigger you get as a free site the less money you make per visit
and the more it costs to service a visit.”
- Markus Frind

Thursday, 28 May 2009

Individual

~ x 10
Business

Thursday, 28 May 2009

200 users @ £20 per month = £4,000 a month
= £48,000 a year

Thursday, 28 May 2009

200 users @ £20 per month = £4,000 a month
= £48,000 a year

4000 users @ £20 per month = £80,000 a month
= £960,000 a year

Thursday, 28 May 2009

200 users @ £20 per month = £4,000 a month
= £48,000 a year

4000 users @ £20 per month = £80,000 a month
= £960,000 a year

CHA CHING!!

Thursday, 28 May 2009

Topical
Geographical
Thursday, 28 May 2009

Topical Freelancers in service industries
Geographical
Thursday, 28 May 2009

Topical Freelancers in service industries
Geographical UK based (mostly)

Thursday, 28 May 2009

http://www.omnisio.com/startupschool08/david-heinemeier-hansson-at-startup-school-08

Thursday, 28 May 2009

conversion rate = 2.5%
cost per user = £2 a year

Thursday, 28 May 2009

conversion rate = 2.5%
cost per user = £2 a year

Total Users 160,000

Thursday, 28 May 2009

conversion rate = 2.5%
cost per user = £2 a year

Total Users 160,000

4000 paying @ £20

Thursday, 28 May 2009

conversion rate = 2.5%
cost per user = £2 a year

Total Users 160,000

4000 paying @ £20 156,000 free

Thursday, 28 May 2009

conversion rate = 2.5%
cost per user = £2 a year

Total Users 160,000

4000 paying @ £20 156,000 free

£960,000 - £320,000 = £640,000

Thursday, 28 May 2009

May 2009

there it is!
Thursday, 28 May 2009

Freemium Subscription + free trial

Daily Sign ups Revenue

Thursday, 28 May 2009

Lessons learned
Find your niche audience
Charge people!
Be careful about what you give away
Creative with business models
Agile business development

Thursday, 28 May 2009

Any questions?
Roan Lavery
roan@freeagentcentral.com
follow: @roanlavery & @freeagentapp

Attribution
http://www.ﬂickr.com/photos/guy_incognito/47600607/
http://www.ﬂickr.com/photos/picsandpics/3395713506/
http://www.ﬂickr.com/photos/digitalsextant/1806620459/
http://www.ﬂickr.com/photos/15589195@N04/2128900152/
http://www.ﬂickr.com/photos/drb62/457354545/
http://www.ﬂickr.com/photos/greenshock/44793290/
http://www.ﬂickr.com/photos/bebebeaux/2956060052/
http://www.ﬂickr.com/photos/undaunted/488622130/
http://www.ﬂickr.com/photos/ihtatho/627226315/
http://www.ﬂickr.com/photos/ciordia/2241906999/
http://www.ﬂickr.com/photos/lucy_baxter/3326890764/

Thursday, 28 May 2009

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Turning your Big Idea into a Business

1. Thursday, 28 May 2009

2. Thursday, 28 May 2009

3. Turning your idea into a business Roan Lavery Thursday, 28 May 2009

4. Thursday, 28 May 2009

5. The plunge Thursday, 28 May 2009

6. Who needs a business model anyway? - Dick Costello, Feedburner http://www.burningdoor.com/askthewizard/ Thursday, 28 May 2009

7. Who needs a business model anyway? - Dick Costello, Feedburner http://www.burningdoor.com/askthewizard/ Thursday, 28 May 2009

8. Who needs a business model anyway? - Dick Costello, Feedburner http://www.burningdoor.com/askthewizard/ Thursday, 28 May 2009

9. Who needs a business model anyway? - Dick Costello, Feedburner http://www.burningdoor.com/askthewizard/ Thursday, 28 May 2009

10. Who needs a business model anyway? - Dick Costello, Feedburner “With this kind of traffic, we'll figure it out” - John Doerr, Google Board http://www.burningdoor.com/askthewizard/ Thursday, 28 May 2009

11. Web app business models Advertising 34% Payments 32% Subscription 14% Long game 6% 3rd party supported 14% http://www.boxuk.com/blog/monetizing-your-web-app-business-models Thursday, 28 May 2009

12. Free love Thursday, 28 May 2009

13. The psychology of free Thursday, 28 May 2009

14. Free love? Critical mass Advertising down User costs Bandwidth Storage Support Scaling Thursday, 28 May 2009

15. “The problem with free is that every time you double the size of your database the cost of maintaining the site grows 6 fold. The bigger you get as a free site the less money you make per visit and the more it costs to service a visit.” - Markus Frind Thursday, 28 May 2009

16. Make ‘em pay Thursday, 28 May 2009

17. Individual ~ x 10 Business Thursday, 28 May 2009

18. Thursday, 28 May 2009

19. 200 users @ £20 per month = £4,000 a month = £48,000 a year Thursday, 28 May 2009

20. 200 users @ £20 per month = £4,000 a month = £48,000 a year 4000 users @ £20 per month = £80,000 a month = £960,000 a year Thursday, 28 May 2009

21. 200 users @ £20 per month = £4,000 a month = £48,000 a year 4000 users @ £20 per month = £80,000 a month = £960,000 a year CHA CHING!! Thursday, 28 May 2009

22. Topical Geographical Thursday, 28 May 2009

23. Topical Freelancers in service industries Geographical Thursday, 28 May 2009

24. Topical Freelancers in service industries Geographical UK based (mostly) Thursday, 28 May 2009

25. http://www.omnisio.com/startupschool08/david-heinemeier-hansson-at-startup-school-08 Thursday, 28 May 2009

26. Freemium Thursday, 28 May 2009

27. conversion rate = 2.5% cost per user = £2 a year Thursday, 28 May 2009

28. conversion rate = 2.5% cost per user = £2 a year Total Users 160,000 Thursday, 28 May 2009

29. conversion rate = 2.5% cost per user = £2 a year Total Users 160,000 4000 paying @ £20 Thursday, 28 May 2009

30. conversion rate = 2.5% cost per user = £2 a year Total Users 160,000 4000 paying @ £20 156,000 free Thursday, 28 May 2009

31. conversion rate = 2.5% cost per user = £2 a year Total Users 160,000 4000 paying @ £20 156,000 free £960,000 - £320,000 = £640,000 Thursday, 28 May 2009

32. March 2007 Thursday, 28 May 2009

33. May 2009 Thursday, 28 May 2009

34. May 2009 there it is! Thursday, 28 May 2009

35. Freemium Subscription + free trial Daily Sign ups Revenue Thursday, 28 May 2009

36. Lessons learned Find your niche audience Charge people! Be careful about what you give away Creative with business models Agile business development Thursday, 28 May 2009

37. Thursday, 28 May 2009

38. Thursday, 28 May 2009

39. Any questions? Roan Lavery roan@freeagentcentral.com follow: @roanlavery & @freeagentapp Attribution http://www.flickr.com/photos/guy_incognito/47600607/ http://www.flickr.com/photos/picsandpics/3395713506/ http://www.flickr.com/photos/digitalsextant/1806620459/ http://www.flickr.com/photos/15589195@N04/2128900152/ http://www.flickr.com/photos/drb62/457354545/ http://www.flickr.com/photos/greenshock/44793290/ http://www.flickr.com/photos/bebebeaux/2956060052/ http://www.flickr.com/photos/undaunted/488622130/ http://www.flickr.com/photos/ihtatho/627226315/ http://www.flickr.com/photos/ciordia/2241906999/ http://www.flickr.com/photos/lucy_baxter/3326890764/ Thursday, 28 May 2009

Turning your Big Idea into a Business

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