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