Can You Commercialize Your WordPress Plugin

Event Espresso, LLC. Copyright 2011

What it’s Worth & What to Consider

Can You Commercialize Your Plugin?

Garth Koyle@eventespresso | eventespresso.com


INTRODUCTION

• Your background• My Background• Presentation Content (e.g. Auction Plugin)

• What are the WP market needs? Why WP?• How big is the market for my development? (auction plugin example)• What price should I charge? (break-even analysis)• How profitable will I be? (pro-forma income statement)• Customer Support Strategies (policy, personnel ratio, hiring, etc.)• Systems Management (sales, affiliates, forums, ticketing,

upgrades, etc.)• WP Entrepreneurship Issues• Questions


BACKGROUND

Event EspressoEvent Registration and Management Plugin 2009 Free 2010 Commercial 2011 Business Plan Competition, $40,000

Staff: 7 Eq. FTE


MARKET NEEDS

Unlimited Use & Free

Ownership and Scalability

Capability

Affordability

Autonomy


WHAT IS THE MARKET SIZE?

What is happening in the WordPress repository?(market share analysis)

WP delisting plugins ifupdate > 2 years

10% Conversion: Free -> Paid



Auctions All TimeCurrent Version Downloads Active Users (AU) Adjusted AU

Newest Version

Ebay Sales Lister 9,182 93.8% 8,613 4,306 10/11/2009WP Tag Ads 7,587 73.9% 5,607 2,803 11/24/2009eBay Autoposter 2,995 92.9% 2,782 1,391 7/11/2009WP eBay Ads 2,019 100.0% 2,019 1,514 3/24/2010Prospress 6,297 30.0% 1,889 1,889 6/17/2011VC Search 3,132 32.0% 1,002 1,002 6/23/2011WatchCount.com 2,791 31.8% 888 888 7/12/2011WP Auctions 17,798 2.0% 356 356 7/11/2011Allegrato 232 100.0% 232 232 11/7/2010Limundo 35 100.0% 35 35 5/16/2011

Total 52,068 23,423 14,417 Potential Buyers ~ 10% - 25% of WP Repository Downloads 1,442 All data as of 8/2011



• WP and Non-WP users • Use Google

• Brand name vendor information• Trends – compare search volume• Keyword Tools – current search volume

• Alexa – traffic estimates


WHAT PRICE SHOULD I CHARGE?

Auction Corporation

Variable Cost Breakeven CostsAffiliate Commission (4%) 1.60$ 4.0% Affiliate CommisssionTransaction Fees (5%) 2.00 5.0% Transaction Fees

Contribution Margin 36.39 Price39.99$ Price


HOW MUCH MONEY CAN I MAKE?

ACME Corporation2012

REVENUE Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total monthly growth rate 50% 50% 50% 35% 35% 35% 20% 20% 15% 15% 15% 31%Plugin Sales (Quantity) 15 23 34 51 68 92 125 149 179 206 237 273 1,452Plugin Sales $600 $900 $1,350 $2,024 $2,733 $3,690 $4,981 $5,977 $7,173 $8,249 $9,486 $10,909 $58,070Net Sales $600 $900 $1,350 $2,024 $2,733 $3,690 $4,981 $5,977 $7,173 $8,249 $9,486 $10,909 58,070

OPERATING EXPENSESSelling

Commissions 24 36 54 81 109 148 199 239 287 330 379 436 2,323 Advertising 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Transaction Fees 30 45 67 101 137 184 249 299 359 412 474 545 3,523 Other

Total Selling Expenses 154 181 221 282 346 432 548 638 746 842 954 1,082 6,426

General/AdministrativeAccounting & Legal 100 100 100 100 150 150 150 150 200 200 200 200 1,800 Contractor Fees 150 150 150 150 150 150 150 150 150 150 150 150 1,800 Internal Systems Development 25 25 25 25 38 38 38 38 50 50 50 50 450 Owner's Draw 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000 Utilities (Phone, Hosting) 20 20 20 20 20 20 20 20 20 20 20 20 240

Total G&A Expenses 3,295 3,295 3,295 3,295 3,358 3,358 3,358 3,358 3,420 3,420 3,420 3,420 40,290

Total Operating Expenses 3,449 3,476 3,516 3,577 3,703 3,790 3,906 3,995 4,166 4,262 4,374 4,502 46,716

Break Even Quantity 95 96 97 98 102 104 107 110 114 117 120 124 1,284

NET INCOME (LOSS) (2,849) (2,576) (2,167) (1,553) (970) (100) 1,075 1,982 3,007 3,986 5,112 6,407 11,354Running Net Income (Loss) ($2,849.14) ($5,425.34) ($7,592.15) ($9,144.86) ($10,115.27) ($10,215.20) ($9,139.97) ($7,158.21) ($4,151.09) ($164.90) $4,947.22 $11,354.15


CUSTOMER SUPPORT STRATEGIES

•Policies• GNU• Support & Upgrades (by domain/use)• Customization Philosophy

• Personnel Ratios• Developers (what you can afford)• Support Staff (depends on stability of your development

and documentation: ~ 1 FTE/2,000 customers)• Hiring Staff (develop your staff)• Reinvestment for Growth


SYSTEMS MANAGEMENT

• Sales/Memberships• Affiliates• Documentation &

Access• Forums• Ticketing

• Upgrades API• Development - SVN• Email - Google• Banking – go with a

mature bank• Payment Processer


ENTREPRENEURSHIP

• Marketing (Twitter search, WP repository, etc.)• Customer Satisfaction (service exp., surveys)• Structure (Partnership, Enterprise, Staff, etc.)


MISSION, VISION, VALUES

MissionOur mission is to empower business and organization leaders with the event registration, ticketing and management tools that maximize the success of events.

VisionOur vision is to become the world’s leading event registration and ticketing provider, and model of profitability by offering autonomy and value.

ValuesWe take pride in our products, including the support we offer to our customers.


Questions?

[email protected]@eventespresso

THANK YOU

Technology

Can You Commercialize Your WordPress Plugin