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Archive for April, 2008

Investment Opportunities & Prospects in Web 2.0 & Internet Startups

April 30, 2008 Leave a comment

Investment Opportunities - Bizak.com

Investors use Bizak to discover new Web 2.0 investment opportunities. From the calculation of comparative benchmarks investors can evaluate the earnings potential of startups in comparison to their competitors and industry.

http://www.bizak.com/investors

Internet Startup Comparison Charts & Benchmarks

April 30, 2008 Leave a comment

Comparison Charts

Bizak launched its beta site on Tuesday April 29, 2008.

Bizak is currently in beta allowing startups to contribute their projects for computing profitability.  Once enough data has been aggregated then the comparative benchmarks will be available to both startups and investors.

Startups Registration

http://www.bizak.com/startups/register

Starting a Startup

April 15, 2008 1 comment

Linked below are a few articles that can provide some direction and advice when starting a startup.

The Revenue Model is one of the most important decisions a startup can make. Whether to use an advertising or a subscription model depends on a number of factors. Linked below are two previous articles which talk about revenue models.

Internet Marketing includes a number of online techniques to increase targeted traffic to your startup. One of the most popular internet marketing fields is search engine optimization or SEO. SEO is essential in grabbing traffic from the search engines however I believe SEO is becoming ineffective and will continue to become so. Listed below are some previous articles that touch on SEO and forms of internet marketing.

10 Tips for a Successful Internet Startup

If you’re looking to start a startup and need help with creating your ideas into a business please feel free to contact TOKiBiz, Inc. at 617-947-8071.

Domains

If you’re looking for high level .VC domains we have a handful for sale such as Technology.VC, Internet.VC and other .VC names revolving around startups and venture capital.  If interested in receiving the list and prices for these domains please email Tom via Bizak.

Free or Not Free?

April 9, 2008 3 comments

When starting a startup one of the most difficult (and essential) tasks is to determine the revenue model. Today there are a lot of great Web 2.0 applications – the technology is amazing and the progress is very exciting. However, as good as the technology is a lot of them lack any sort of revenue model. The majority of them rely on Google Adsense to cover the bills and I assume rely on prayer to get bought out. Google Adsense is not a revenue model!

Building tremendous technology can be very difficult but being able to monetize that application is often a daunting task – especially for the very technical. Daunting because figuring out what people will pay for with a subscription model is very difficult. First off an application that targets a younger, non-professional, market is going to have a very difficult time generating revenues. This younger market has grown up with the web and everything has been free for them. This age group has also become immune to advertising. They know how to ignore banners and they know what Google Adsense looks like – no matter how well it blends into your design and content.

As I mentioned above Google Adsense is not a business model – it also doesn’t generate significant income for the majority of websites. I feel that if you’re targeting a professional market and you’re using Adsense then it will work against you. If you need Adsense to supplement your revenues then your business is probably not thriving and therefore I will likely go somewhere else. There is of course in-house advertising which can be very lucrative, however, it requires a lot more work, traffic, creativity and a niche market.

So when building a startup a lot of the revenue model decisions come down to should we give everything away for free and use an advertising model or should we go with a subscription model? First off I’m not a fan of giving away services for free! Once you’ve given something away for free it becomes virtually impossible to ever charge for that service in the future. You can always start off with not free and then revert to free if subscriptions don’t work. However, you can’t go from free to not free!

One of the main reasons why I don’t like free is because it diminishes the value of your subscribers. It still amazes me that people will sign up for anything as long as it’s free. They might not like the service but they like free so they’ll register with your site. Obviously this boosts your subscriber totals, however, it doesn’t create loyal customers and the quality of those subscribers is low.

Now if that subscriber paid for your service then you know he/she really values your work, finds it useful and will likely use the service again. Obviously your subscriber totals will be lower but you’ll have revenues from loyal subscribers.

So with that comes my belief that there are two types of prices – Free and Not Free. There are some people who won’t pay anything for a service – they only want it if it’s $0.00. These people don’t care if it’s $4 or even $1, if it’s not Free then it’s not for them.

The second price is Not Free and this relates to people who value the service you built and will pay to use it. Unlike free, which gives you zero flexibility, not free comes with a range of flexibility. Depending on the service offered if you’re able to target the people who will pay Not Free for your service then the actual price you charge isn’t a determining factor. For example, if you sell high end information services to professionals then it’s not going to matter if you charge $500 or $900 for that service. This person wants the service you offer and price (within reason) won’t make a difference. Just like on the lower end, if they’re willing to pay $5 then they will likely pay $10.

In sum, applications built on a subscription and/or service model which targets professionals and/or a niche market are my favorites!

Video of this Post

Medical Questions & Symptoms

April 9, 2008 2 comments

infoMedMD.com is set to launch in early May but before we do I thought I would provide you with the screen shot of the site design! The site was designed by Fortunate13 and built by sjcallan designs.

infoMedMD is a healthcare application that answers your medical questions with health information specific to you and your symptoms.

For healthcare professionals we offer infoMeds unique to you and your practice. Custom infoMeds can record a patient’s history, review their symptoms and include your medical opinion – all before a patient’s visit!
Medical Questions & Symptoms

Comparative Analysis on Bizak.com

After many long months Bizak is almost ready to launch. We just finished our comparative analysis page (click image below for screen shot) and we will be opening up our tools for startups shortly. After a few weeks of data aggregation we’ll be opening up the site to investors and professionals.

Questions? Please feel free to contact me.
Link? www.Bizak.com
Spread the word!

An Increase in EPV (Earnings per Visitor)?

April 2, 2008 1 comment

Little Bizak

Just as I feel that higher gas prices will lead to new transportation inventions I also feel that a decline in web traffic (due to ineffective SEO) will lead to higher EPVs. As I’ve mentioned previously I believe “Adsense Has Become Worthless” which is not necessarily a bad thing since I feel it will weed out a lot of the spam sites. This in combination with a decrease in SEO traffic will ultimately force websites to create better business models that generate a higher earnings per visitor. If websites can no longer rely on heavy traffic to make their $0.01 EPV profitable then they must increase their EPV in order to maintain status quo.

For example, if a website receives 10,000 daily visitors and has an EPV of $0.01 then that sites makes $100/day. If that traffic suddenly plunges to 100 visitors/day then that site is now only earning $1/day. In order to maintain a $100/day income that website must now increase its EPV to $1.00. How do you do this? A better quality site, a focused target market, the addition of services to your revenue model, creativity, etc., etc., etc.

To determine your EPV, RPV (Revenues per Visitor), and Bizak Estimate visit the link below to use the Bizak Calculator:

http://www.bizak.com/calculators/epv.html