24symbols is a platform to readdigital books on the Internet 24s = cloud + social + freemium
On the cloud No file download needed, your readings go with you
Social Enriched and shared reading experience
Freemium! Free: ability to read ebooks, free and with non-intrusive ads.! Premium: ability to read ebooks, ad-free, even without Internet connection. Price by subscription.! Affiliation: we redirect traffic to your site or wherever you sell your printed books.
Income model ! 24symbols income is based on advertising and subscriptions. ! 70 % of this revenue is shared equally among the total number of pages read. 70% Total Income PublishersPublisher’s = xIncome Pages Read Total Pages Read
Why 24S +no downloads +flexibility (catalog)+Control +no exclusivity + Income +audited +proved business model +statistics +sales (printed books) +SEO +virality +recommendation +Marketing
A Freemium Model for Books! Combination of a free basic service with an advanced service based on a periodic subscription.! Free service permits to easily get a huge number of users (no barrier of entry). • Income source (ad-supported).! No barrier of entry + high-quality service + interesting conversion factors = premium users • Main income source.
Free / Premium free users Conversion Rate Delayed subscription premium (test the service & engage) time
How to get users Direct SEO SEM SMM Mobile Emailing MGM! User generation rate will vary according to: • marketing campaigns, • product (new features & apps. for specific devices), • tablet/device penetration, • catalog…! … but it will spontaneously speed up if the number of users reaches a critical mass.
How to get premium users ! Typical purchase funnel, but with a delayed behaviour. • Conversion requires enough time to test & engage. Visits Registered Time Users Premium ! Why to subscribe: • Offline reading + Extended catalog + Ad-free + Other features.
How Pageview Price is determined 70% Total Income Pageview = Price Total Pages Read! Income = Ads (20%) + Subscriptions (80%). • Ads are not so efficient as an income source…! Income distributed to publishers according to the number of pageviews of each title. ➤ Pageview as the consume measurement unit in 24S.
How Pageview Price is related toConversion Rate Conversion Rate Goal: 10% Pageview Price Pageview Price
How to manage a profitable ConversionRate ! Freemium models need time to get: • Critical mass (enough number of readers), • and a profitable pageview price (enough premium users). ! Initially focused on registered users, gradually shift to focus on conversion rate. • Detailed monitoring of subscription patterns (profile, speed) to make business decisions that optimize it: ➤ Prices / Offers. ➤ Service differentiation for subscribers. ➤ New limitations for free users… ! Free service is still strategically interesting to get new users (eventually new subscribers).
How to manage a profitable ConversionRate (II) users registered + limitations for free users better Conversion Rate! Premium Users Conversion Rate = Premium + Free Users subscribers + value for subscribers time
Typical misunderstandings! “Ads are never a relevant income source”. • Right… but freemium models are built to be profitable with subscriptions, not ads (just to monetize free users).! “It is more profitable to have 100K premium users than 22M free users” • Right… but free access is the only fast way to substantially increase the number of users, that eventually will subscribe. • In other words, it is more likely to get 100K premium users with a freemium approach than without.
Typical misunderstandings (II)! “You don´t guarantee a minimum pageview price” • Right… things need time to work out. Not much. • Title discoverability increases from the first day. • Backlist titles get a new income source. • Bestselling titles can be initially limited to subscribers, 24symbols as an online marketing channel.