The Naked Truth 2009 Revenue Metrics - Presentation Transcript
The Naked Truth 2009 The Naked Truth: an annual Redfin-hosted summer event to offer entrepreneurs pragmatic advice This year’s theme: Show Me the Money Revenue models for consumer Internet startups July 9, 2009, Olympic Sculpture Park 500 registered attendees Four entrepreneurs presented #s on monetizing 100K visitors Glenn Kelman, Redfin Ethan Lowry, UrbanSpoon Jonathan Sposato, Picnik Brad Jefferson, Animoto Four experts discussed industry-wide trends Michael Arrington, TechCrunch Damon Darlin, New York Times Fred Wilson, Union Square Ventures & A VC Fred Vogelstein, Wired Three sponsors Madrona Venture Group Fenwick & West Square 1 Bank Join the discussion Seattle 2.0 streamed the event: http://blog.redfin.com/2009/07/nakedtruthvideo.html Twitter: #nakedtruth
100,000 unique visitors
40,000 from Google (0 paid)
1,380 new registrants
60 new qualified clients, 24 partner referrals
82 unqualified (can’t get a loan) clients
124 days to revenue, 4.8 service requests per client
8 booked deals, 1.5 booked referrals
$61,825 / 100,000 unique visitors
96.5% direct: $7,520 per client, 20% gross margin
3.5% referral: $1,110 per client, 50% gross margin
Lessons learned
Reviews: increased conversion 36%
Simple calls to action: increased conversion 16%
First response: the golden-hour
Visitors web: 74% Google mobile: 99% iPhone Revenue per 100k visitors web: $2k mobile: $5k Revenue sources Affiliate networks ($0 CPM) Ad networks ($1 - $3 CPM) Brand advertising ($5 - $15 CPM) Citysearch ads (much more) Lessons learned iPhone and direct visitors view >2x more pages Heavy SEO focus: 3%-5% monthly growth Apple commercial: 300% growth
Revenue Sources 80% Picnik Premium Subscriptions 20% advertising 100,000 unique visitors (unpaid) 44.3K Direct Traffic 30.3K Search Engines 16.8K Referring Sites 16.2K (or 20.8K *) new registrants Premium $’s earned per 100,000 uniques $2,000 / 100,000 unique visitors $9,145 / 100,000 new unique visitors Premium buyers predominantly 19+ yrs old. 50.18% buy on 1st visit, 75% buy within 4 visits 0 – 14 “days to revenue” Renewal rate = ~64% ~40% gross margin What saves our hide: fixed costs low. marginal costs low for new features. What else saves our hide: ad revenues Lessons learned Partnerships are not nirvana We’re retail: new features and constant product freshness seem key to revenue generation Point of purchase execution has huge impact on sales ROI on features counter-intuitive. Must manage backend costs; can have bigger impact on margins than top-line sales. Press and reviews helpful, but viral WOM true drivers We’re still at rock bottom. Lots of headroom to optimize site’s points of purchase further…
100,000 unique visitors (all unpaid)
60K direct, 10K Google organic
5K from Facebook, YouTube, Twitter & Stumbleupon
Conversion metrics
Approx. 7% of Animoto.com uniques register
Approx. 10% of registered users purchase
700 paying users per 100,000 uniques
Lessons learned
Offer something that you yourself would buy
Hybrid business model is working: ‘Freemium’ + Virtual Goods
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