Can You Commercialize     Your Plugin?  What it’s Worth & What to Consider             Garth Koyle  @eventespresso | event...
INTRODUCTION•   Your background•   My Background•   Presentation Content (e.g. Auction Plugin)     • What are the WP marke...
BACKGROUNDEvent EspressoEvent Registration and Management Plugin 2009 Free 2010 Commercial 2011 Business Plan Competiti...
MARKET NEEDSAffordability                         Unlimited Use & FreeAutonomy                          Ownership and Scal...
WHAT IS THE MARKET SIZE?What is happening in theWordPress repository?(market share analysis)WP delisting plugins ifupdate ...
WHAT IS THE MARKET SIZE?                                    Current Version                                NewestAuctions ...
WHAT IS THE MARKET SIZE?• WP and Non-WP users• Use Google    • Brand name vendor information    • Trends – compare search ...
WHAT PRICE SHOULD I CHARGE?                             Auction CorporationVariable Cost                                  ...
HOW MUCH MONEY CAN I MAKE?                                                                                              AC...
CUSTOMER SUPPORT STRATEGIES•Policies    • GNU    • Support & Upgrades (by domain/use)    • Customization Philosophy• Perso...
SYSTEMS MANAGEMENT  • Sales/Memberships                     • Upgrades API  • Affiliates                            • Deve...
ENTREPRENEURSHIP  • Marketing (Twitter search, WP repository, etc.)  • Customer Satisfaction (service exp., surveys)  • St...
MISSION, VISION, VALUESMissionOur mission is to empower business and organization leaders with the eventregistration, tick...
THANK YOU             Questions?        garth@eventespresso.com            @eventespresso             Event Espresso, LLC....
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Can You Commercialize Your WordPress Plugin

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  • Can You Commercialize Your WordPress Plugin

    1. 1. Can You Commercialize Your Plugin? What it’s Worth & What to Consider Garth Koyle @eventespresso | eventespresso.com Event Espresso, LLC. Copyright 2011
    2. 2. INTRODUCTION• Your background• My Background• Presentation Content (e.g. Auction Plugin) • What are the WP market needs? Why WP? • How big is the market for my development? (auction plugin example) • What price should I charge? (break-even analysis) • How profitable will I be? (pro-forma income statement) • Customer Support Strategies (policy, personnel ratio, hiring, etc.) • Systems Management (sales, affiliates, forums, ticketing, upgrades, etc.)• WP Entrepreneurship Issues• Questions Event Espresso, LLC. Copyright 2011
    3. 3. BACKGROUNDEvent EspressoEvent Registration and Management Plugin 2009 Free 2010 Commercial 2011 Business Plan Competition, $40,000 Staff: 7 Eq. FTE Event Espresso, LLC. Copyright 2011
    4. 4. MARKET NEEDSAffordability Unlimited Use & FreeAutonomy Ownership and ScalabilityCapability Event Espresso, LLC. Copyright 2011
    5. 5. WHAT IS THE MARKET SIZE?What is happening in theWordPress repository?(market share analysis)WP delisting plugins ifupdate > 2 years10% Conversion: Free -> Paid Event Espresso, LLC. Copyright 2011
    6. 6. WHAT IS THE MARKET SIZE? Current Version NewestAuctions All Time Downloads Active Users (AU) Adjusted AU VersionEbay Sales Lister 9,182 93.8% 8,613 4,306 10/11/2009WP Tag Ads 7,587 73.9% 5,607 2,803 11/24/2009eBay Autoposter 2,995 92.9% 2,782 1,391 7/11/2009WP eBay Ads 2,019 100.0% 2,019 1,514 3/24/2010Prospress 6,297 30.0% 1,889 1,889 6/17/2011VC Search 3,132 32.0% 1,002 1,002 6/23/2011WatchCount.com 2,791 31.8% 888 888 7/12/2011WP Auctions 17,798 2.0% 356 356 7/11/2011Allegrato 232 100.0% 232 232 11/7/2010Limundo 35 100.0% 35 35 5/16/2011 Total 52,068 23,423 14,417Potential Buyers ~ 10% - 25% of WP Repository Downloads 1,442All data as of 8/2011 Event Espresso, LLC. Copyright 2011
    7. 7. WHAT IS THE MARKET SIZE?• WP and Non-WP users• Use Google • Brand name vendor information • Trends – compare search volume • Keyword Tools – current search volume• Alexa – traffic estimates Event Espresso, LLC. Copyright 2011
    8. 8. WHAT PRICE SHOULD I CHARGE? Auction CorporationVariable Cost Breakeven Costs Affiliate Commission (4%) $ 1.60 4.0% Affiliate Commisssion Transaction Fees (5%) 2.00 5.0% Transaction FeesContribution Margin 36.39 Price $ 39.99 Price Event Espresso, LLC. Copyright 2011
    9. 9. HOW MUCH MONEY CAN I MAKE? ACME Corporation 2012REVENUE Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total monthly growth rate 50% 50% 50% 35% 35% 35% 20% 20% 15% 15% 15% 31%Plugin Sales (Quantity) 15 23 34 51 68 92 125 149 179 206 237 273 1,452Plugin Sales $600 $900 $1,350 $2,024 $2,733 $3,690 $4,981 $5,977 $7,173 $8,249 $9,486 $10,909 $58,070Net Sales $600 $900 $1,350 $2,024 $2,733 $3,690 $4,981 $5,977 $7,173 $8,249 $9,486 $10,909 58,070OPERATING EXPENSESSelling Commissions 24 36 54 81 109 148 199 239 287 330 379 436 2,323 Advertising 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Transaction Fees 30 45 67 101 137 184 249 299 359 412 474 545 3,523 OtherTotal Selling Expenses 154 181 221 282 346 432 548 638 746 842 954 1,082 6,426General/Administrative Accounting & Legal 100 100 100 100 150 150 150 150 200 200 200 200 1,800 Contractor Fees 150 150 150 150 150 150 150 150 150 150 150 150 1,800 Internal Systems Development 25 25 25 25 38 38 38 38 50 50 50 50 450 Owners Draw 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000 Utilities (Phone, Hosting) 20 20 20 20 20 20 20 20 20 20 20 20 240Total G&A Expenses 3,295 3,295 3,295 3,295 3,358 3,358 3,358 3,358 3,420 3,420 3,420 3,420 40,290Total Operating Expenses 3,449 3,476 3,516 3,577 3,703 3,790 3,906 3,995 4,166 4,262 4,374 4,502 46,716 Break Even Quantity 95 96 97 98 102 104 107 110 114 117 120 124 1,284NET INCOME (LOSS) (2,849) (2,576) (2,167) (1,553) (970) (100) 1,075 1,982 3,007 3,986 5,112 6,407 11,354Running Net Income (Loss) ($2,849.14) ($5,425.34) ($7,592.15) Event Espresso, LLC.($10,215.20) ($9,139.97) ($9,144.86) ($10,115.27) Copyright 2011 ($7,158.21) ($4,151.09) ($164.90) $4,947.22 $11,354.15
    10. 10. CUSTOMER SUPPORT STRATEGIES•Policies • GNU • Support & Upgrades (by domain/use) • Customization Philosophy• Personnel Ratios • Developers (what you can afford) • Support Staff (depends on stability of your development and documentation: ~ 1 FTE/2,000 customers)• Hiring Staff (develop your staff)• Reinvestment for Growth Event Espresso, LLC. Copyright 2011
    11. 11. SYSTEMS MANAGEMENT • Sales/Memberships • Upgrades API • Affiliates • Development - SVN • Documentation & • Email - Google Access • Banking – go with a • Forums mature bank • Ticketing • Payment Processer Event Espresso, LLC. Copyright 2011
    12. 12. ENTREPRENEURSHIP • Marketing (Twitter search, WP repository, etc.) • Customer Satisfaction (service exp., surveys) • Structure (Partnership, Enterprise, Staff, etc.) Event Espresso, LLC. Copyright 2011
    13. 13. MISSION, VISION, VALUESMissionOur mission is to empower business and organization leaders with the eventregistration, ticketing and management tools that maximize the success of events.VisionOur vision is to become the world’s leading event registration and ticketing provider,and model of profitability by offering autonomy and value.ValuesWe take pride in our products, including the support we offer to our customers. Event Espresso, LLC. Copyright 2011
    14. 14. THANK YOU Questions? garth@eventespresso.com @eventespresso Event Espresso, LLC. Copyright 2011

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