Revenue Streams for Startups - Rashmi Sinha
description
Transcript of Revenue Streams for Startups - Rashmi Sinha
Why your startup needs multiple revenue modelsRashmi SinhaSlideShare
Background
• SlideShare• Revenue experiments (Advertising,
LeadShare, AdShare, Channels, Pro Accounts)
SlideShare Pro Accounts
Your users should understand your business model
The first sales person should be YOU
Understand the Sales Learning Curve before first sales hire
Financial models are useful(to understand if it will scale)
Get entire team on board
More experiments are better
Advertising
• Networks• Direct sales• Through partners
Advertising needs massive scale• Getting to 50 million
in revenue– General site, $1 RPM
, 4 billion pageviews. – Demographic
targeting, $5 RPM, 800 million pageviews
– Endemic advertisers, $20 RPM, 200 million pageviews
Balancing ads and user experience
Understanding Freemium
• Free + Premium
• Metrics– Conversion– Churn %– CLTV (Customer
Lifetime Value)– User Acquisition
cost
Practice customer development• Release early• Listen to
feedback• Charge for it
from Day one• Iterate, iterate,
iterate
With paid products, your customers call and tell you what they will pay for!
Comparing revenue from diff models
Bookings Realized Revenue
Collections
Advertising: Networks
N/A When ad is run
30 days
Advertising: Direct Sales
IO is signed When ad is run
45-120 days later
Subscriptions
Subscription agreement
Subscription period
Beginning of each subscription period
Multiple models balance this out
Slides at: www.slideshare.net/rashmi