Revenue Scenarios

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Revenue Scenarios

  1. 1. Facebook App Financials Ariel Poler April 3, 2008
  2. 2. Revenue Scenarios Large Lightweight Small Very Engaging Medium Very Engaging Medium Targeted cpm $ 0.50 $ 1.00 $ 1.00 $ 5.00 daily actives 750,000 25,000 100,000 100,000 pages per visit 3 25 25 10 pageviews 2,250,000 625,000 2,500,000 1,000,000 daily revenue $ 1,125 $ 625 $ 2,500 $ 5,000 annual revenue $ 400,500 $ 222,500 $ 890,000 $ 1,780,000
  3. 3. Increasing Revenue <ul><li>Large enough audience </li></ul><ul><ul><li>Hundreds of thousands to millions </li></ul></ul><ul><li>Large enough inventory </li></ul><ul><li>Targeted & attractive audience </li></ul><ul><li>Dedicated sales team? </li></ul><ul><ul><li>Hard to find & expensive… </li></ul></ul>
  4. 4. Costs? <ul><ul><li>Hosting scales with traffic. There could be some initial set-up costs, depending on approach </li></ul></ul><ul><ul><li>Hiring? Estimate $10/pax/year. </li></ul></ul><ul><ul><li>Legal? A few thousand dollars up front. Should remain minimal </li></ul></ul><ul><ul><li>You can keep costs very minimal until you get traction. But your app must be intrinsically viral. </li></ul></ul>
  5. 5. Planning for the end game <ul><li>Side Project? 1-2 people generating $10K to $100K per year. </li></ul><ul><li>Lifestyle? 1-2 people generating $100K to $500K per year. </li></ul><ul><li>Moderate exit? 3-10 people generating $500K+ per year and/or building a valuable and desirable asset. </li></ul><ul><li>Big exit? Must ramp to tens of millions in sales per year and/or build something truly unique and valuable. </li></ul>
  6. 6. Financing Options <ul><li>Bootstrapped. Always a good approach… </li></ul><ul><li>Friends & Family. Those who believe in you… </li></ul><ul><li>Angel Investors & VCs. </li></ul><ul><ul><li>Have traction and need growth capital & advice </li></ul></ul><ul><ul><li>Have a track record </li></ul></ul><ul><ul><li>Have a killer idea and plan to execute on it </li></ul></ul>

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