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Turning your idea into a business

Turning your idea into a business

Presented at the Future of Web Apps 2009

Roan Lavery

May 27, 2009
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  1. None
  2. None
  3. Turning your idea into a business Roan Lavery

  4. None
  5. The plunge

  6. Who needs a business model anyway? - Dick Costello, Feedburner

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

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

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

    http://www.burningdoor.com/askthewizard/
  10. Who needs a business model anyway? “With this kind of

    traffic, we'll figure it out” - John Doerr, Google Board - Dick Costello, Feedburner http://www.burningdoor.com/askthewizard/
  11. Web app business models Advertising 34% Subscription 14% 3rd party

    supported 14% Long game 6% Payments 32% http://www.boxuk.com/blog/monetizing-your-web-app-business-models
  12. Free love

  13. The psychology of free

  14. Free love? Critical mass Advertising down User costs Bandwidth Storage

    Support Scaling
  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
  16. Make ‘em pay

  17. Individual Business ~ x 10

  18. None
  19. = £48,000 a year 200 users @ £20 per month

    = £4,000 a month
  20. 4000 users @ £20 per month = £80,000 a month

    = £960,000 a year = £48,000 a year 200 users @ £20 per month = £4,000 a month
  21. 4000 users @ £20 per month = £80,000 a month

    = £960,000 a year CHA CHING!! = £48,000 a year 200 users @ £20 per month = £4,000 a month
  22. Topical Geographical

  23. Topical Freelancers in service industries Geographical

  24. Topical UK based (mostly) Freelancers in service industries Geographical

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

  26. Freemium

  27. conversion rate = 2.5% cost per user = £2 a

    year
  28. conversion rate = 2.5% Total Users 160,000 cost per user

    = £2 a year
  29. conversion rate = 2.5% Total Users 160,000 cost per user

    = £2 a year 4000 paying @ £20
  30. conversion rate = 2.5% Total Users 160,000 cost per user

    = £2 a year 4000 paying @ £20 156,000 free
  31. £960,000 - £320,000 = £640,000 conversion rate = 2.5% Total

    Users 160,000 cost per user = £2 a year 4000 paying @ £20 156,000 free
  32. March 2007

  33. May 2009

  34. there it is! May 2009

  35. Freemium Subscription + free trial Daily Sign ups Revenue

  36. Lessons learned Find your niche audience Charge people! Be careful

    about what you give away Be creative with business models Agile business development
  37. None
  38. None
  39. Any questions? Roan Lavery roan@freeagent.com follow: @roanlavery & @freeagent 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/ Attribution