Web Business & Revenue Models Caelen King CEO RevaHealth.com @revahealth.com blog.revahealth.com

Who Am I Product Manager Baltimore Technologies . Software license sales > €150 million . CEO & Founder of RevaHealth.com. Raised > €2M . Subscription, Transaction & Advertising models . VP Product NewBay Software . White labelled web apps > 15 million users

A Start up Revolution Never before has it been possible to build a global business with so little capital

Web Business 101

Who will pay?

How much will they pay?

How will they pay?

Can you reconcile revenue to costs?

5 Web Business Types Merchant Operating a Market Application Provider Utility Publisher or Broadcaster

Revenue Models Software License White / Co Labelling Mark Up Commission Subscription Pay Per Use 3 rd Party Sponsorship / Advertising

3 rd Party Sponsorship Mark Up Pay Per Use Operating a Market Subscription Commission Publisher or Broadcaster Utility Application Provider Merchant Software License White / Co Labelling

Webware top 100

Software License - Problems Profitable deals can turn unprofitable in year 2 & 3 . Requires world class sales or distribution team and difficult to scale Product become sales driven, not market driven resulting in feature bloat

White Labeling Develop, maintain, deploy and operate massive web application for organizations with an existing consumer base Puts you more in control of your own destiny than software licensing Much better long term revenue model Still requires high level sales or distribution channels

Subscriptions

Beautiful Revenue Model We’re Rich Hooray!

Churn

5% Annual Churn Hey I’m still pretty rich

15% Annual Churn Ok, I can deal with a smaller car

30% Annual Churn I’ll get the bus to work

50 % Annual Churn I’m screwed

Things to know about subs 20% Churn = 100% customer satisfaction . You must price discriminate Raise your price channels

Advertising

Pay Per Impression (PPM) RevaHealth.com can earn $5 PPM Low risk low reward Need a lot of impressions channels

Pay Per Click (PPC) – self sell RevaHealth.com can earn ~ $1.2 per click on average Click through rates of 3-4% (7 ads) Equivalent PPM of about €35 CPC works best if you have transient visitors

Pay Per Action & Affiliates RevaHealth.com can earn 10% commission on a PPA basis This is where RevaHealth.com gets paid if the patient actually gets a treatment done Translates to a €400 PPM

Why we don’t do PPA Collections & Cash Flow

We do Pay Per Lead Answers the collections issue Better monetization than PPC Not as good as PPA However better cash flow and costs PPM

3 rd party sponsorship lessons Move as far up the risk categories as possible. PPM – PPC – PPL - PPA PPC – Tweak & Test and double your revenue At some point you have pimped out your application too much - Stop PPM

Questions? @revahealth.com [email_address] slides on blog.revahealth.com