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Posts Tagged ‘internet services’

Investors, Financing, Venture Capital & Funding Opportunities of Startups

September 16, 2008 Leave a comment

To register please visit: https://www.bizak.com/investors/register

This evening, actually 2am this morning, we at Bizak are starting to role out the investor side of our database. This means investors and corporations can finally view and compare startups within our database.  Different from the startup side, investors can actually see specific data, web analytics and financial data for all startups who elect to have their information published.  

Right now, as of 2am Tuesday morning, investors can subscribe to our XML feed and view and compare benchmarks to startups.  All of the investor applications will be completed by Wednesday afternoon.  The features that still need to be added are the profiles (contact information, bio, links, etc.) for startups and the ability to view and sort the top ten projects according to each sort.  A sort consists of Industry, Business Type and Revenue Source.  For example, you can view the top ten startups who are in the Internet industry, operate a business network and have a subscription model.  

As for the XML feeds this allows investors, venture capital firms and corporations to integrate our data into their platform for both internal use and database access for clients.  Examples of the data included in the XML schemas can be seen below.  Both of the XML files are being modified a bit more and contact phone and URL will be integrated into the startup schemas. Each subscriber has their own unique URL which returns data in XML format using the below schemas.

To register please visit: https://www.bizak.com/investors/register

For additional information about the investor side of Bizak please view the video below the XML data.

Startups & Projects

<?xml version=”1.0″ encoding=”UTF-8″?>
<projectlist>
<project>
<startup>Startup Company Name (text)</startup>
<startupcontact>Startup Contact Name (text)</startupcontact>
<projectname>Project Name (text)</projectname>
<industry>Industry (text)</industry>
<websitetype>Website (text)</websitetype>
<revenuesource>Revenue (text)</revenuesource>
<visitors>Visitors (number)</visitors>
<revenue>Revenue (number)</revenue>
<rpv>Revenue per Visitor (number)</rpv>
<costs>Costs (number)</costs>
<cpv>Costs per Visitor (number)</cpv>
<earnings>Earnings (number)</earnings>
<epv>Earnings per Visitor (number)</epv>
<estimate>Bizak Estimate (number)</estimate>
</project>
</projectlist>
Benchmarks
<?xml version=”1.0″ encoding=”UTF-8″?>
<benchmarks>
<benchmark>
<industry>Industry (text)</industry>
<websitetype>Website (text)</websitetype>
<revenuesource>Revenue (text)</revenuesource>
<visitors>Visitors (number)</visitors>
<revenue>Revenue (number)</revenue>
<rpv>Revenue per Visitor (number)</rpv>
<costs>Costs (number)</costs>
<cpv>Costs per Visitor (number)</cpv>
<earnings>Earnings (number)</earnings>
<epv>Earnings per Visitor (number)</epv>
<estimate>Bizak Estimate (number)</estimate>
</benchmark>
</benchmarks>

 

 

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Comparing the Financial Performance of Startups

September 13, 2008 Leave a comment

Slide 7 from the Bizak presentation discussing our market and the need to make an apples to apples comparison of internet startups.

For the high quality version please click here

Comparative Analysis, Web Analytics, Financials & Benchmarks

Last evening, in addition to infoMedMD, we at TOKiBiz also launched the industry benchmarks for Bizak.com

If you’re already registered with Bizak just login and you’ll see a nice new navigation bar for you.  If you haven’t registered with Bizak you can do see via the website worth page.

For additional information and definitions about the benchmarks please click on the image below.  For a full size screenshot please see full size screenshot.

 

Benchmarks

Benchmarks

Twitter Costs

June 12, 2008 3 comments

Twitter Revenues, Costs, & EarningsThere has been a lot of talk lately about Twitter and Twitter’s revenue model, or their lack of one. With almost 2 million users Twitter has become a phenomenon (one that I don’t understand) but also one that’s plagued by server failures and downtime.

At the end of May Twitter secured a $15 million investment from Boston based Spark Capital. This capital infusion will surely be used to limit downtime and create some revenues – something even a phenomenon needs. Considering that Twitter loses money for every visitor to the site they need to monetize this application quickly. The very conservative estimate (via Bizak Calculator) computes Twitter loses $0.03 for every visitor – that’s based on a very low $50,000 /month server costs. Costs and loses are more likely double that!

Obviously the Bizak Calculator doesn’t add in the phenom factor when computing valuations!

Free Wi-Fi – An Effective Marketing Tool

June 9, 2008 2 comments

Last week Starbucks announced a new customer rewards program that in exchange for registering with Starbucks.com gives you 2 hours/day of free wireless access. For years customers have been begging Starbucks to give them free wireless access. The rationale behind free Wi-Fi is simple – give me free internet access and I’ll spend more time and more money at your store. Well Starbucks finally listened, thanks in large part to their terrific My Starbucks Idea, however what they did was far more brilliant than just free Wi-Fi.

By requiring customers to register a Starbucks card (in order to receive Wi-Fi) they are now able to track the frequency of customer visits, time spent at their cafe and of course customer contact information for marketing purposes. Most businesses spend thousands to gather this type of information, Starbucks is making a minimum of $5 for you to give it to them. With one simple idea Starbucks can now expand their customer list in a way that just opening up their networks could not provide.

Wireless internet access has become a commodity throughout the world. Unlike most commodities the price demand for public internet access is free, however, that doesn’t mean you can’t profit from it.

Many restaurants, stores and cafes already know that free Wi-Fi is good for business – it brings people in for longer periods of time. What an open network doesn’t do is tell you who that person is. By not requiring a customer to register with your network you’re missing out on the potential to get him back again. With a few simple tweaks to your wireless network you can require customers to provide you with their contact information before you provide them with internet access. Now, in addition to getting people in, you’re building an effective marketing list of people who are already familiar with your business.

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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