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Can You Commercialize
     Your Plugin?
  What it’s Worth & What to Consider
             Garth Koyle
  @eventespresso | eventespresso.com




           Event Espresso, LLC. Copyright 2011
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
BACKGROUND

Event Espresso
Event Registration and Management Plugin
 2009 Free
 2010 Commercial
 2011 Business Plan Competition, $40,000
    Staff: 7 Eq. FTE




                              Event Espresso, LLC. Copyright 2011
MARKET NEEDS


Affordability                         Unlimited Use & Free

Autonomy                          Ownership and Scalability




Capability

                Event Espresso, LLC. Copyright 2011
WHAT IS THE MARKET SIZE?


What is happening in the
WordPress repository?
(market share analysis)

WP delisting plugins if
update > 2 years

10% Conversion: Free -> Paid

                    Event Espresso, LLC. Copyright 2011
WHAT IS THE MARKET SIZE?

                                    Current Version                                Newest
Auctions           All Time         Downloads        Active Users (AU) Adjusted AU Version
Ebay Sales Lister            9,182             93.8%            8,613        4,306 10/11/2009
WP Tag Ads                   7,587             73.9%            5,607        2,803 11/24/2009
eBay Autoposter              2,995             92.9%            2,782        1,391   7/11/2009
WP eBay Ads                  2,019            100.0%            2,019        1,514   3/24/2010
Prospress                    6,297             30.0%            1,889        1,889   6/17/2011
VC Search                    3,132             32.0%            1,002        1,002   6/23/2011
WatchCount.com               2,791             31.8%               888         888   7/12/2011
WP Auctions                 17,798              2.0%               356         356   7/11/2011
Allegrato                       232           100.0%               232         232   11/7/2010
Limundo                          35           100.0%                35          35   5/16/2011
             Total          52,068                             23,423       14,417
Potential Buyers ~ 10% - 25% of WP Repository Downloads                      1,442
All data as of 8/2011

                                   Event Espresso, LLC. Copyright 2011
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
WHAT PRICE SHOULD I CHARGE?


                             Auction Corporation


Variable Cost                                                Breakeven Costs
 Affiliate Commission (4%)   $            1.60                    4.0% Affiliate Commisssion
 Transaction Fees (5%)                    2.00                    5.0% Transaction Fees
Contribution Margin                      36.39               Price
                                                              $ 39.99 Price




                             Event Espresso, LLC. Copyright 2011
HOW MUCH MONEY CAN I MAKE?

                                                                                              ACME Corporation
                                                                                                    2012

REVENUE                                 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   1,452
Plugin Sales                                 $600     $900          $1,350         $2,024       $2,733       $3,690      $4,981      $5,977    $7,173   $8,249  $9,486  $10,909 $58,070
Net Sales                                    $600     $900          $1,350         $2,024       $2,733       $3,690      $4,981      $5,977    $7,173   $8,249  $9,486  $10,909 58,070

OPERATING EXPENSES
Selling
    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
    Other
Total Selling Expenses                        154         181           221           282          346          432         548          638         746         842        954       1,082    6,426

General/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
   Owner's 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      240
Total 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   40,290

Total 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     1,284

NET INCOME (LOSS)                           (2,849)     (2,576)       (2,167)       (1,553)        (970)       (100)       1,075        1,982       3,007       3,986      5,112      6,407   11,354
Running 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
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
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
ENTREPRENEURSHIP


  • Marketing (Twitter search, WP repository, etc.)
  • Customer Satisfaction (service exp., surveys)
  • Structure (Partnership, Enterprise, Staff, etc.)




                  Event Espresso, LLC. Copyright 2011
MISSION, VISION, VALUES

Mission
Our mission is to empower business and organization leaders with the event
registration, ticketing and management tools that maximize the success of events.

Vision
Our vision is to become the world’s leading event registration and ticketing provider,
and model of profitability by offering autonomy and value.

Values
We take pride in our products, including the support we offer to our customers.




                              Event Espresso, LLC. Copyright 2011
THANK YOU

             Questions?

        garth@eventespresso.com
            @eventespresso




             Event Espresso, LLC. Copyright 2011

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Can You Commercialize Your WordPress Plugin

  • 1. Can You Commercialize Your Plugin? What it’s Worth & What to Consider Garth Koyle @eventespresso | eventespresso.com Event Espresso, LLC. Copyright 2011
  • 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. BACKGROUND Event Espresso Event Registration and Management Plugin  2009 Free  2010 Commercial  2011 Business Plan Competition, $40,000 Staff: 7 Eq. FTE Event Espresso, LLC. Copyright 2011
  • 4. MARKET NEEDS Affordability Unlimited Use & Free Autonomy Ownership and Scalability Capability Event Espresso, LLC. Copyright 2011
  • 5. WHAT IS THE MARKET SIZE? What is happening in the WordPress repository? (market share analysis) WP delisting plugins if update > 2 years 10% Conversion: Free -> Paid Event Espresso, LLC. Copyright 2011
  • 6. WHAT IS THE MARKET SIZE? Current Version Newest Auctions All Time Downloads Active Users (AU) Adjusted AU Version Ebay Sales Lister 9,182 93.8% 8,613 4,306 10/11/2009 WP Tag Ads 7,587 73.9% 5,607 2,803 11/24/2009 eBay Autoposter 2,995 92.9% 2,782 1,391 7/11/2009 WP eBay Ads 2,019 100.0% 2,019 1,514 3/24/2010 Prospress 6,297 30.0% 1,889 1,889 6/17/2011 VC Search 3,132 32.0% 1,002 1,002 6/23/2011 WatchCount.com 2,791 31.8% 888 888 7/12/2011 WP Auctions 17,798 2.0% 356 356 7/11/2011 Allegrato 232 100.0% 232 232 11/7/2010 Limundo 35 100.0% 35 35 5/16/2011 Total 52,068 23,423 14,417 Potential Buyers ~ 10% - 25% of WP Repository Downloads 1,442 All data as of 8/2011 Event Espresso, LLC. Copyright 2011
  • 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. WHAT PRICE SHOULD I CHARGE? Auction Corporation Variable Cost Breakeven Costs Affiliate Commission (4%) $ 1.60 4.0% Affiliate Commisssion Transaction Fees (5%) 2.00 5.0% Transaction Fees Contribution Margin 36.39 Price $ 39.99 Price Event Espresso, LLC. Copyright 2011
  • 9. HOW MUCH MONEY CAN I MAKE? ACME Corporation 2012 REVENUE 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 1,452 Plugin Sales $600 $900 $1,350 $2,024 $2,733 $3,690 $4,981 $5,977 $7,173 $8,249 $9,486 $10,909 $58,070 Net Sales $600 $900 $1,350 $2,024 $2,733 $3,690 $4,981 $5,977 $7,173 $8,249 $9,486 $10,909 58,070 OPERATING EXPENSES Selling 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 Other Total Selling Expenses 154 181 221 282 346 432 548 638 746 842 954 1,082 6,426 General/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 Owner's 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 20 240 Total 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 40,290 Total 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 1,284 NET INCOME (LOSS) (2,849) (2,576) (2,167) (1,553) (970) (100) 1,075 1,982 3,007 3,986 5,112 6,407 11,354 Running 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. 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. 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. ENTREPRENEURSHIP • Marketing (Twitter search, WP repository, etc.) • Customer Satisfaction (service exp., surveys) • Structure (Partnership, Enterprise, Staff, etc.) Event Espresso, LLC. Copyright 2011
  • 13. MISSION, VISION, VALUES Mission Our mission is to empower business and organization leaders with the event registration, ticketing and management tools that maximize the success of events. Vision Our vision is to become the world’s leading event registration and ticketing provider, and model of profitability by offering autonomy and value. Values We take pride in our products, including the support we offer to our customers. Event Espresso, LLC. Copyright 2011
  • 14. THANK YOU Questions? garth@eventespresso.com @eventespresso Event Espresso, LLC. Copyright 2011

Editor's Notes

  1. Customer surveys with auto responder.