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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 You to Be Free but You Need to Get Paid Powered By Docstoc
					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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posted:10/4/2008
language:English
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