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REVENUE The Internet Wants You to Be Free but You Need to Get Paid

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									Revenue

The Internet Wants to Be Free, but You Need to Get Paid

Hi. I’m Andrew.

My life in advertising:

Revenue Science publisher clients

Direct
ecommerce subscription virtual goods brands

Indirect
ads lead generation affiliate / CPA

Direct
ecommerce subscription virtual goods brands

Transact = $$$

Transactions as funnels

Users enter

Browse

Add to cart

Buy

ARPU = average revenue per user

ecommerce ARPU • new users • % browse • % add to cart • % who buy • average order size

virtual items ARPU • new users • % register • % buy currency • purchases/month • average order size • churn % • month2 revenue

subscription ARPU • new users • % register • % subscribe • month1 revenue • (1-churn %) * month2 revenue • …

3 steps to max ARPU
• Identify user funnels • Increase repeat visits • Raise average order size

Indirect
ads lead generation affiliate / CPA

Ad impressions

Clicks

Leads

Affiliate

ad impressions RPM
• CPM

leads RPM
• % conv * CPL * 1000

clicks RPM
• CTR * PPC * 1000

affiliate RPM
• % conv * order size* 1000

Inventory model
Impressions RPM

Home
Profile

200,000
1,000,000

$1.00
$0.25

Forum Message
Search

2,000,000 500,000
500,000

$0.25 $0.50
$10.00

4 steps to max revenues
• Grow audiences • Higher CTR and conv % • Advertisers • Optimize

Direct
ecommerce subscription virtual goods brands

Indirect
ads lead generation affiliate / CPA

Questions?

voodoo [at] gmail.com http://andrewchenblog.com
@andrew_chen


								
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