A look at different web app business models including advertising, freemium and subscription, and the choices that startups face when trying to generate revenue from an application.

1. Thursday, 28 May 2009

2. Thursday, 28 May 2009

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

4. Thursday, 28 May 2009

5. The plunge
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

12. Free love
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

16. Make ‘em pay
Thursday, 28 May 2009

17. Individual
~ x 10
Business
Thursday, 28 May 2009

18. 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

25. http://www.omnisio.com/startupschool08/david-heinemeier-hansson-at-startup-school-08
Thursday, 28 May 2009

26. Freemium
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

32. March 2007
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33. May 2009
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34. May 2009
there it is!
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35. Freemium Subscription + free trial
Daily Sign ups Revenue
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36. Lessons learned
Find your niche audience
Charge people!
Be careful about what you give away
Creative with business models
Agile business development
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37. Thursday, 28 May 2009

38. 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