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Caelen King

Caelen King discusses various monetization strategies for web applications, including software licensing, white labeling, subscriptions, and different types of advertising models. Software licensing can be difficult to scale and negotiate recurring revenue. White labeling puts the developer more in control but remains complex. Subscriptions provide recurring revenue but are vulnerable to churn. Different advertising models like pay-per-click, pay-per-impression, and pay-per-action each have pros and cons in terms of risk, reward, and customer traffic patterns. The best approach may be a hybrid of subscriptions and pay-per-lead.

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Monetising your Web Applications Caelen King CEO and Founder @RevaHealth Presentation available on blog.revahealth.com
Product Manager at Baltimore Technologies Software license sales > $150m VP Product at NewBay Software White labelled web apps> 15 million users CEO at RevaHealth.com Subscription, Advertising PPM, PPC, PPA / Affiliates Not going to talk about transaction model, micro-payments, etc, virtual currencies. What am I going to talk about
Old School Software license
It is vital to align your pricing to your customers revenue model, not your business model Profitable deals on year one turn unprofitable on year two + Not scalable from a sales person perspective You typically require a good sales team Difficult to negotiate good recurring revenue streams Product becomes sales driven rather than user driven resulting feature boat Problems with the Software License
NewBay is a good example of effective white labelling Develop, maintain, deploy and operate massive web application for organizations with an existing consumer base Puts you more in control of your own destiny that software licensing Generally provides a much better revenue mix Still very complex White-label
Subscriptions
It is beautiful
It is beautiful Were Rich Horary!
The enemy of the subscription model
1% Churn Hey Im still pretty rich
5% Churn Ok, I can deal with a smaller car
10% Churn Ill get the bus to work
15% Churn Im screwed
Advertising
Barcamp Belfast
Barcamp Belfast
Barcamp Belfast
Barcamp Belfast
RevaHealth.com can earn $5 PPM Low risk low reward Need a lot of impressions This can be good if you have a lot of recurring traffic Per Per Impression (PPM)
RevaHealth.com can earn ~ $0.8 per click on average Click through rates of 3-4% Equivalent PPM of about 22 CPC works best if you have transient visitors If you currently have adsense you can double revenue by tweaking Per Per Click (PPC)
RevaHealth.com can earn 10% commission on a PPA basis This is where RevaHealth.com gets paid if the patient actually gets a treatment done Translates through to a 400 PPM Pay Per Action (PPA)/ Affiliates
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Collections Cash Flow So why dont we do PPA
Answers the collections issue Better monetization than PPC Not as good as PPA However better cash flow and costs What do we do? Subscription & Pay Per Lead
Questions? Email me: cking@revahealth.com Follow me on Twitter: @revahealth.com Comment on the blog: blog.revahealth.com

More Related Content

Barcamp Belfast

  • 1. Monetising your Web Applications Caelen King CEO and Founder @RevaHealth Presentation available on blog.revahealth.com
  • 2. Product Manager at Baltimore Technologies Software license sales > $150m VP Product at NewBay Software White labelled web apps> 15 million users CEO at RevaHealth.com Subscription, Advertising PPM, PPC, PPA / Affiliates Not going to talk about transaction model, micro-payments, etc, virtual currencies. What am I going to talk about
  • 3. Old School Software license
  • 4. It is vital to align your pricing to your customers revenue model, not your business model Profitable deals on year one turn unprofitable on year two + Not scalable from a sales person perspective You typically require a good sales team Difficult to negotiate good recurring revenue streams Product becomes sales driven rather than user driven resulting feature boat Problems with the Software License
  • 5. NewBay is a good example of effective white labelling Develop, maintain, deploy and operate massive web application for organizations with an existing consumer base Puts you more in control of your own destiny that software licensing Generally provides a much better revenue mix Still very complex White-label
  • 8. It is beautiful Were Rich Horary!
  • 9. The enemy of the subscription model
  • 10. 1% Churn Hey Im still pretty rich
  • 11. 5% Churn Ok, I can deal with a smaller car
  • 12. 10% Churn Ill get the bus to work
  • 13. 15% Churn Im screwed
  • 19. RevaHealth.com can earn $5 PPM Low risk low reward Need a lot of impressions This can be good if you have a lot of recurring traffic Per Per Impression (PPM)
  • 20. RevaHealth.com can earn ~ $0.8 per click on average Click through rates of 3-4% Equivalent PPM of about 22 CPC works best if you have transient visitors If you currently have adsense you can double revenue by tweaking Per Per Click (PPC)
  • 21. RevaHealth.com can earn 10% commission on a PPA basis This is where RevaHealth.com gets paid if the patient actually gets a treatment done Translates through to a 400 PPM Pay Per Action (PPA)/ Affiliates
  • 23. Collections Cash Flow So why dont we do PPA
  • 24. Answers the collections issue Better monetization than PPC Not as good as PPA However better cash flow and costs What do we do? Subscription & Pay Per Lead
  • 25. Questions? Email me: cking@revahealth.com Follow me on Twitter: @revahealth.com Comment on the blog: blog.revahealth.com

Editor's Notes

  • #2: Hi My name is Caelen King and Im the founder and CEO of RevaHealth.com. Today Im going to talk to you about making money. Ive talked to a lot of entrepreneurs in Ireland who are building web application and I always find it amazing that so little time is spent thinking about how it is actually going to make money. There seems to be an almost religous belief that making money is a natural follow on from making a great app. It is not.