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

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

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FOWA Tour- Roan Lavery Presentation Transcript

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