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Andy Bovingdon ‘How to generate revenue from a developer program?’ presentation


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Presentation by Andy Bovingdon, VP Product Marketing at Bango, given at Mobile World Congress 2011.

Topics covered: Why conversion rates are important * Direct billing * cross operator billing platforms * Payout rates and marketing

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Andy Bovingdon ‘How to generate revenue from a developer program?’ presentation

  1. 1. How to generate revenue from a developer program?Mobile billing advice to maximize revenues for all<br />Andy BovingdonVP Product Marketing<br />
  2. 2. The best developer program deliversmaximum earnings for minimum effort<br />
  3. 3. Ways to make money<br />3<br />Indirect<br />Advertising<br />Direct<br />Payments<br />CreditCards<br />Banner Ads<br />AffiliateMarketing<br />PayPal,Google Checkout, Amazon Payment<br />OperatorBilling<br />SearchMarketing<br />
  4. 4. Mobile billing recommendation #1<br />4<br />Focus on conversion rates<br />Higher conversion rates mean higher earnings<br />Give the consumer a clear and simple experience<br />Show clear payment terms<br />Minimize the number of payment steps<br />Ensure most subscribers can pay with one click<br />Operator billing delivers the highest conversions<br />~7% is typical credit card conversion rate<br />~60% is typical for traditional operator billing<br />
  5. 5. <ul><li>Example: 1000 customers each buying a $10 item</li></ul>Why conversion rates are important<br />5<br />Operator billing<br />60% conversion rate<br />40% fees<br />Credit cards<br />10% conversion rate<br />2% fees<br />$980Developer earnings<br />$2,400Biller earnings<br />$3,600Developer earnings<br />$20Biller earnings<br />Operator billing delivers considerably higher revenues to all<br />
  6. 6. Further boosting conversion rates<br />Consistent carrier billing over WiFi<br />Over 50% of connections are now via WiFi <br /><br />Optimal one-click payment experience <br />Avoid registration, logins, extra confirmation pages<br />Identification and the network effect<br />Remember people & preferences across merchants<br />Failover to credit cards or PayPal<br />Funds unavailable, monthly or daily limits reached<br />No identity, operator billing down, <br />6<br />
  7. 7. Mobile billing recommendation #2<br />7<br />Use direct billing – not premium SMS<br />Direct billing provides<br />Immediate response with detailed status<br />Full granularity of price points<br />Credit card like capabilities<br />Problems with premium SMS include <br />Delays and message loss<br />Lack of status<br />Restricted price points<br />
  8. 8. Mobile billing recommendation #3<br />Keep it simple<br />Use existing cross operator billing platforms<br />8<br />Operator 1<br />Operator 2<br />Operator 3<br />Operator 1<br />Operator 2<br />Operator 3<br />Billing platform (e.g. Bango)<br />Developer<br />Developer<br /><ul><li>Single effort
  9. 9. No extra work
  10. 10. Minimum effort
  11. 11. Effort per operator
  12. 12. New work each time
  13. 13. Maximum effort</li></li></ul><li>Don’t ignore payout rates or marketing<br /><ul><li>40% fees are not viable or competitive today
  14. 14. Higher earnings drives increased marketing</li></ul>Mobile billing recommendation #4<br />9<br />Sales<br />Earnings<br />Marketing<br />
  15. 15. Information, information, information<br /><ul><li>Detailed payment reports for revenue & conversions</li></ul>Mobile billing recommendation #5<br />10<br />
  16. 16. Information, information, information<br />Relate payments to marketing, websites and app use<br />Mobile billing recommendation #5<br />11<br />
  17. 17. Questions?<br />Andy<br />web: bango.comwhite papers: @bangodotcom<br />12<br />