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Sunday, October 07, 2012 3:25:04 AM
Now, everyone is asking how we make money and the short answer is;we don’t (yet).
Here’s my thinking:
Look at Linked-In, Skype and Twitter for example (all freeservices) and see what “Market Cap” they demand, it is huge considering none ofthese companies made much money last time I checked. Actually Linked-In was atthe time of the IPO priced at about 1,000 times earnings, Twitter turned down afew billion dollars with little to no revenue and Skype (losing $7M in 2010) wasjust sold for 8 billion dollars to Microsoft.
Where’s the value? THEAUDIENCE!
So, what do we do? We give away our solution to grow the audienceand then look at revenue opportunities when the volume hits certain milestonesover the next 1-2 years (hopefully).
Hypothetical: Let’s sayWrapMail gets to 250,000 users in the next 1-2 years. That would represent 2.5million emails sent through us every day (the average user sends about 10 external emails per day). That is equal to the circulation of the largestnewspaper in the US; USA Today. I bet a lot of companies would like toadvertise to that receiving audience. I further believe we would be able to generate about 5 cents per email sent in 3rdparty ad revenue or license fee so now it is fairly easy to calculate potential revenues:
100,000 users: $50,000 daily revenue - $15,000,000 annual revenue
200,000 users: $100,000 daily revenue - $30,000,000 annual revenue
400,000 users: $200,000 daily revenue - $60,000,000 annual revenue
500,000 users: $250,000 daily revenue - $75,000,000 annual revenue
The higher the percentage that opt for 3rd party advertising as opposed to paying a license fee to stay ad free the higher the revenue to WrapMail.
The above is not guaranteed to happen by any means but in my mindit is very feasible if we do things right.
We are looking at models where we let the email senders share in the ad revenue to further grow the volume and revenue.
WrapMailsolutions and who can use it:
Business –any business in any location with a website and employees that send emails can use wrapmail.Most businesses do not have a store so their website is their only store where they feature products and services. Take a real estate agent for example, the only place you can view all the properties in one location is on their website –with wrapmail they can show the properties with every email sent and have these images link back to the website that contains more information about that specific MLS listing. Just to give an idea of what kind of clients we get on a daily basis here’s a list of some of the clients that signed up in the past few days:
http://www.otcmarkets.com/stock/WRAP/news/Chairman-update-in-letter-to-shareholder?id=31806&b=y
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