Turning your idea into a business

Presented at the Future of Web Apps 2009

Transcript

3. Turning your idea into a business Roan Lavery
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
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
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