Turning your idea into a business
Roan Lavery
The plunge
Who needs a business model anyway?




                                       - Dick Costello, Feedburner



“With this ki...
Web app business models                  Advertising
                                            34%




 Payments
   32%
...
Free love
The psychology of free
Free love?
Critical mass
Advertising down
User costs
  Bandwidth
  Storage
  Support
  Scaling
“The problem with free is that every time you double the size of
 your database the cost of maintaining the site grows 6 f...
Make ‘em pay
Individual


       ~ x 10

Business
200 users @ £20 per month = £4,000
a month
                = £48,000 a year

4000 users @ £20 per month =
                ...
Topica     Freelancers in service industries
Geographical   UK based (mostly)
http://www.omnisio.com/startupschool08/david-heinemeier-hansson-at-startup-school-08
Freemium
conversion rate = 2.5%
                   cost per user = £2 a
                     year
       Total Users

4000 paying @...
March 2007
May 2009




there it is!
Freemium       Subscription + free trial




   Daily Sign ups      Revenue
Lessons learned
Find your niche audience
Charge people!
Be careful about what you give away
Creative with business models
...
Any questions?
Roan Lavery
roan@freeagentcentral.com
follow: @roanlavery & @freeagentapp

Attributio
http://www.flickr.com/...
FOWA Tour- Roan Lavery
FOWA Tour- Roan Lavery
FOWA Tour- Roan Lavery
FOWA Tour- Roan Lavery
FOWA Tour- Roan Lavery
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FOWA Tour- Roan Lavery

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Future of Web Apps Tour Edinburgh presents "Turning Your Big Idea into a Business" by Roan Lavery

Published in: Technology, Business

FOWA Tour- Roan Lavery

  1. 1. Turning your idea into a business Roan Lavery
  2. 2. The plunge
  3. 3. 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/
  4. 4. 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
  5. 5. Free love
  6. 6. The psychology of free
  7. 7. Free love? Critical mass Advertising down User costs Bandwidth Storage Support Scaling
  8. 8. “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
  9. 9. Make ‘em pay
  10. 10. Individual ~ x 10 Business
  11. 11. 200 users @ £20 per month = £4,000 a month = £48,000 a year 4000 users @ £20 per month = = £960,000 a year CHA CHING!!
  12. 12. Topica Freelancers in service industries Geographical UK based (mostly)
  13. 13. http://www.omnisio.com/startupschool08/david-heinemeier-hansson-at-startup-school-08
  14. 14. Freemium
  15. 15. conversion rate = 2.5% cost per user = £2 a year Total Users 4000 paying @ 156,000 £960,000 - £320,000 = £640,000
  16. 16. March 2007
  17. 17. May 2009 there it is!
  18. 18. Freemium Subscription + free trial Daily Sign ups Revenue
  19. 19. Lessons learned Find your niche audience Charge people! Be careful about what you give away Creative with business models Agile business development
  20. 20. Any questions? Roan Lavery roan@freeagentcentral.com follow: @roanlavery & @freeagentapp Attributio 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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