Barcamp Belfast

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  • Hi My name is Caelen King and I‘m the founder and CEO of RevaHealth.com. Today I‘m going to talk to you about making money. I‘ve talked to a lot of entrepreneurs in Ireland who are building web application and I always find it amazing that so little time is spent thinking about how it is actually going to make money. There seems to be an almost religous belief that making money is a natural follow on from making a great app. It is not.
  • Barcamp Belfast

    1. 1. Monetising your Web Applications Caelen King CEO and Founder @RevaHealth Presentation available on blog.revahealth.com
    2. 2. <ul><li>Product Manager at Baltimore Technologies </li></ul><ul><ul><li>Software license sales > $150m </li></ul></ul><ul><li>VP Product at NewBay Software </li></ul><ul><ul><li>White labelled web apps> 15 million users </li></ul></ul><ul><li>CEO at RevaHealth.com </li></ul><ul><ul><li>Subscription, </li></ul></ul><ul><ul><li>Advertising PPM, PPC, PPA / Affiliates </li></ul></ul><ul><li>Not going to talk about transaction model, micro-payments, etc, virtual currencies. </li></ul>What am I going to talk about
    3. 3. Old School – Software license
    4. 4. <ul><li>It is vital to align your pricing to your customer’s revenue model, not your business model </li></ul><ul><li>Profitable deals on year one turn unprofitable on year two + </li></ul><ul><li>Not scalable from a sales person perspective </li></ul><ul><li>You typically require a good sales team </li></ul><ul><li>Difficult to negotiate good recurring revenue streams </li></ul><ul><li>Product becomes sales driven rather than user driven resulting feature boat </li></ul>Problems with the Software License
    5. 5. <ul><li>NewBay is a good example of effective white labelling </li></ul><ul><li>Develop, maintain, deploy and operate massive web application for organizations with an existing consumer base </li></ul><ul><li>Puts you more in control of your own destiny that software licensing </li></ul><ul><li>Generally provides a much better revenue mix </li></ul><ul><li>Still very complex </li></ul>White-label
    6. 6. Subscriptions
    7. 7. It is beautiful
    8. 8. It is beautiful We’re Rich Horary!
    9. 9. The enemy of the subscription model
    10. 10. 1% Churn Hey I’m still pretty rich
    11. 11. 5% Churn Ok, I can deal with a smaller car
    12. 12. 10% Churn I’ll get the bus to work
    13. 13. 15% Churn I’m screwed
    14. 14. Advertising
    15. 15.
    16. 16.
    17. 17.
    18. 18.
    19. 19. <ul><li>RevaHealth.com can earn $5 PPM </li></ul><ul><li>Low risk low reward </li></ul><ul><li>Need a lot of impressions </li></ul><ul><li>This can be good if you have a lot of recurring traffic </li></ul>Per Per Impression (PPM)
    20. 20. <ul><li>RevaHealth.com can earn ~ $0.8 per click on average </li></ul><ul><li>Click through rates of 3-4% </li></ul><ul><li>Equivalent PPM of about €22 </li></ul><ul><li>CPC works best if you have transient visitors </li></ul><ul><li>If you currently have adsense you can double revenue by tweaking </li></ul>Per Per Click (PPC)
    21. 21. <ul><li>RevaHealth.com can earn 10% commission on a PPA basis </li></ul><ul><li>This is where RevaHealth.com gets paid if the patient actually gets a treatment done </li></ul><ul><li>Translates through to a €400 PPM </li></ul>Pay Per Action (PPA)/ Affiliates
    22. 22.
    23. 23. <ul><li>Collections </li></ul><ul><li>Cash Flow </li></ul>So why don’t we do PPA
    24. 24. <ul><li>Answers the collections issue </li></ul><ul><li>Better monetization than PPC </li></ul><ul><li>Not as good as PPA </li></ul><ul><li>However better cash flow and costs </li></ul>What do we do? Subscription & Pay Per Lead
    25. 25. Questions? Email me: cking@revahealth.com Follow me on Twitter: @revahealth.com Comment on the blog: blog.revahealth.com

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