A brief introdcution to web business & revenue models with a more in depth look at subscriptions and advertising.

1. Web Business & Revenue Models Caelen King CEO RevaHealth.com @revahealth.com blog.revahealth.com

2. Who Am I Product Manager Baltimore Technologies . Software license sales > €150 million . CEO & Founder of RevaHealth.com. Raised > €2M . Subscription, Transaction & Advertising models . VP Product NewBay Software . White labelled web apps > 15 million users

3. A Start up Revolution Never before has it been possible to build a global business with so little capital

4. Web Business 101

5. Who will pay?

6. How much will they pay?

7. How will they pay?

8. Can you reconcile revenue to costs?

9. 5 Web Business Types Merchant Operating a Market Application Provider Utility Publisher or Broadcaster

10. Revenue Models Software License White / Co Labelling Mark Up Commission Subscription Pay Per Use 3 rd Party Sponsorship / Advertising

11. 3 rd Party Sponsorship Mark Up Pay Per Use Operating a Market Subscription Commission Publisher or Broadcaster Utility Application Provider Merchant Software License White / Co Labelling

12. Webware top 100

14. Software License - Problems Profitable deals can turn unprofitable in year 2 & 3 . Requires world class sales or distribution team and difficult to scale Product become sales driven, not market driven resulting in feature bloat

15. White Labeling Develop, maintain, deploy and operate massive web application for organizations with an existing consumer base Puts you more in control of your own destiny than software licensing Much better long term revenue model Still requires high level sales or distribution channels

16. Subscriptions

17. Beautiful Revenue Model We’re Rich Hooray!

18. Churn

19. 5% Annual Churn Hey I’m still pretty rich

20. 15% Annual Churn Ok, I can deal with a smaller car

21. 30% Annual Churn I’ll get the bus to work

22. 50 % Annual Churn I’m screwed

23. Things to know about subs 20% Churn = 100% customer satisfaction . You must price discriminate Raise your price channels

24. Advertising

29. Pay Per Impression (PPM) RevaHealth.com can earn $5 PPM Low risk low reward Need a lot of impressions channels

30. Pay Per Click (PPC) – self sell RevaHealth.com can earn ~ $1.2 per click on average Click through rates of 3-4% (7 ads) Equivalent PPM of about €35 CPC works best if you have transient visitors

31. Pay Per Action & Affiliates RevaHealth.com can earn 10% commission on a PPA basis This is where RevaHealth.com gets paid if the patient actually gets a treatment done Translates to a €400 PPM

32. Why we don’t do PPA Collections & Cash Flow

33. We do Pay Per Lead Answers the collections issue Better monetization than PPC Not as good as PPA However better cash flow and costs PPM

34. 3 rd party sponsorship lessons Move as far up the risk categories as possible. PPM – PPC – PPL - PPA PPC – Tweak & Test and double your revenue At some point you have pimped out your application too much - Stop PPM

35. Questions? @revahealth.com [email_address] slides on blog.revahealth.com