Posts Tagged ‘EPV’

Online Startup

November 2, 2008 2 comments
To increase exposure for startups on Bizak we’ve opened up our project listings for public view.  Sartups on Bizak are categorized according to industry, business type and revenue source. 
The 19 categories below contain the listings for each industry – you can then sort deeper according to business type and revenue source.
  1. Internet 
  2. Education
  3. Advertising & Marketing
  4. Computers & Electronics
  5. Arts & Entertainment
  6. Finance & Insurance
  7. Banking & Mortgage
  8. Business
  9. Politics & Media
  10. Legal
  11. Construction
  12. Design
  13. Healthcare
  14. Industrials
  15. Non Profit
  16. Printing
  17. Retail
  18. Sports
  19. Transportation

Google Adsense or Advertising Model?

October 1, 2008 3 comments

According to Bizak, in house advertising campaigns are more profitable for entrepreneurs than Google Adsense.  Websites who implement Adsense have an EPV of $0.07 compared to sites who manage their own advertising who earn $0.17 per visitor.  I actually think the Adsense EPV ($0.07) is a bit high and it will come down with more data.  However, compare Adsense to subscriptions ($0.35 EPV), consulting fees ($2.29 EPV) and product sales ($10.64 EPV) and Google Adsense is a poor decision for startups and websites.  

One benefit of Google Adsense is that it’s very easy to implement and the costs associated with that implementation are very low.  Sites with Adsense have the lowest CPV (Cost per Visitors) at just $0.03 – In House Advertising is more difficult to implement and therefore have a CPV of $0.12.  To no surprise product sales requires some of the highest startup costs with a $4.34 CPV – subscriptions are at $0.39 and consulting registers a $1.62 CPV.

Bizak’s Revenue & Business Model

September 11, 2008 Leave a comment

Here is another slide from Vencorp’s Mashable Startup Showdown.  This video is a bit longer at 2:49 and this time around I’m discussing (in detail) Bizak’s current revenue model.  The discussion also talks about our plans to syndicate our data via XML (available soon for $4,000/month) and the integration of professional consulting services for both startups and investors.

For the high quality version of this video please click here.

Website Worth & Valuation

June 25, 2008 2 comments

Rick Breslin of the Drive Thru Internet Marketing Podcast recently interviewed Tom O’Keefe about the benefits of Bizak for both startups and investors. Topics in the video podcast include:

  • What is Bizak?
  • Website Worth and Industry Data Comparison
  • Startups Can Register for Free
  • Investors Can Find Prospective Online Ventures
  • The Bizak Calculator – Earnings per Visitor (EPV)

Myspace Revenues & Valuation Compared to Facebook

June 23, 2008 3 comments

Myspace RevenuesFacebook recently overtook the number one worldwide visitors title from Myspace but Rupert Murdoch & News Corp. are probably not concerned. In July 2005 News Corp. purchased Myspace for $580 million. This year Myspace is expected to generate 2008 revenues of $800 million. In comparison Facebook revenues for 2008 are expected to be $350 million.

Without costs that $800 million for Facebook equates to a $3.2 billion dollar valuation (source: Bizak’s business valuation) for Myspace. It turns out that Rupert made another very smart investment.

If you use the same costs figures for Myspace that I used for Facebook (approximately $26 million/year or $2,166,666.00/month) then we can get a better comparison.

Revenues: Myspace $800 Million, Facebook $350 Million

Earnings per Visitor: Myspace $1.08, Facebook $0.84*

*Facebook’s EPV is based on 32 million visitors. Change Facebook’s visitors to equal Myspace (60 million) and their EPV drops to $0.45

Valuation: Myspace $3.174 Billion, Facebook $1.374 Billion

Winner: Myspace & Rupert Murdoch

Visually Myspace is still very sloppy but they’re getting better – just in time for Rupert to sell Myspace for a huge profit.  Maybe experience does help when running a company??!!

Product Sales Top Earnings per Visitor, Adsense the Lowest Earnings

June 17, 2008 1 comment

According to current estimates on companies that rely on product sales have the highest average earnings per visitor (EPV) at $4.35. Google Adsense comes in with the lowest EPV of $0.06.

Google Adsense makes up almost 22% of all startups listed on Bizak yet they bring in the lowest amount of earnings. Product sales account for 17.4% of all business models, affiliate marketing 10.8%, services 16.7%, subscriptions 8% and in house advertising 25%.

Earnings, Product Sales, Google Adsense, Subscriptions, Services, Consulting

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!

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