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Assignment #6:
Costs
The Idea:
Create an online platform for renters and landlords monthly payment.
Per Unit Revenue Vs. Cost:
 $80 a year fee per landlord plus 5%
commission per transaction.
 Revenue per unit: $80
 Unit = Landlord (Customer).
 Estimated landlords in the first year: 50
Revenue Per Unit:
 Platform creation: $2.500
 Outsourced tasks: $500
 Material costs: $250
 Cost per unit: ($2.500 + $500 +
$250) / 50 customers = $65
Cost Per Unit:
$80 >$65
There Is Profit!
Calculated Costs:
GoDaddy.com Hosting:
$4 monthly
GoDaddy.com Domain:
$11 yearly
Platform Creation:
$2.500 one time pay
Outsourced tasks:
$500 yearly
Fixed costs.
Bank transaction commission:
2% of the transaction value
Variable cost.
Calculated Costs:
No Employees
Until we achieve market fit we
will make all the necessary
work.
No Office
Unnecessary physical space.
By now, we can work from
home.
As Lean As Possible!
Free Mentorship
No consultants. We have
great mentors we can refer
and learn.
Viable Business Model?:
Customers Needed
For Breakeven
The numbers indicate that it’s a viable business model.
The technology is already invented and the need exists.
Other Possible Revenue Channels:
Although we have a viable business model, we
could also test other revenue channels such as:
 Partnership allies.
 Real estate advertisement.
 Rent the platform.
COMING SOON

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EasyRent.com - Assignment #6 - Costs

  • 2. The Idea: Create an online platform for renters and landlords monthly payment.
  • 3. Per Unit Revenue Vs. Cost:  $80 a year fee per landlord plus 5% commission per transaction.  Revenue per unit: $80  Unit = Landlord (Customer).  Estimated landlords in the first year: 50 Revenue Per Unit:  Platform creation: $2.500  Outsourced tasks: $500  Material costs: $250  Cost per unit: ($2.500 + $500 + $250) / 50 customers = $65 Cost Per Unit: $80 >$65 There Is Profit!
  • 4. Calculated Costs: GoDaddy.com Hosting: $4 monthly GoDaddy.com Domain: $11 yearly Platform Creation: $2.500 one time pay Outsourced tasks: $500 yearly Fixed costs. Bank transaction commission: 2% of the transaction value Variable cost.
  • 5. Calculated Costs: No Employees Until we achieve market fit we will make all the necessary work. No Office Unnecessary physical space. By now, we can work from home. As Lean As Possible! Free Mentorship No consultants. We have great mentors we can refer and learn.
  • 6. Viable Business Model?: Customers Needed For Breakeven The numbers indicate that it’s a viable business model. The technology is already invented and the need exists.
  • 7. Other Possible Revenue Channels: Although we have a viable business model, we could also test other revenue channels such as:  Partnership allies.  Real estate advertisement.  Rent the platform.