FOWA Tour- Roan Lavery

Turning your idea into a businessRoan Lavery

The plunge

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/

Web app business models Advertising34%

Subscription14%

3rd party supported14%

Long game6%

Payments32%

http://www.boxuk.com/blog/monetizing-your-web-app-business-models

Free love

The psychology of free

Free love?Critical mass

Advertising down

User costs

BandwidthStorageSupportScaling

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

Make ‘em pay

Individual

Business

~ x 10

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

CHA CHING!!

= £48,000 a year

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

TopicaUK based (mostly)Freelancers in service industries

Geographical

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

Freemium

£960,000 - £320,000 = £640,000

conversion rate = 2.5%

Total Users

cost per user = £2 a year

4000 paying @ 156,000

March 2007

there it is!

May 2009

Freemium Subscription + free trial

Daily Sign ups Revenue

Lessons learnedFind your niche audience

Charge people!

Be careful about what you give away

Creative with business models

Agile business development

Any questions?Roan Laveryroan@freeagentcentral.comfollow: @roanlavery & @freeagentapp

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/

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