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




Thursday, 28 May 2009
Thursday, 28 May 2009
The plunge




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




                          http://www.burningdoor.com/askthewizard/
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




                          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
Free love




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
Make ‘em pay




Thursday, 28 May 2009
Individual



                        ~ x 10
       Business




Thursday, 28 May 2009
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
Freemium




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
March 2007




Thursday, 28 May 2009
May 2009




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
Thursday, 28 May 2009
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

  • 3. Turning your idea into a business Roan Lavery 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
  • 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
  • 17. Individual ~ x 10 Business 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
  • 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
  • 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
  • 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