Hot answers tagged revenue
20
For a tech blog/website, then $1 CPM (that is, $1 for every thousand hits) is the kind of level I've personally seen, and I get the impression that's not atypical. So, for $1,000/month in revenue I would need 1,000,000 hits. But obviously if your market is such that people are willing to pay more for clicks then you'll get more, and if they're willing to ...
10
You say that it's a good business for someone to purchase and grow, yet, you have not substantially grown it yourself. This will be a huge alarm bell to any potential purchaser. After all, if it's "that easy" to grow it, you would have done so already.
If you really want to sell it and get a good price for it, I would recommend that you start marketing it ...
9
You need to hire an accountant. Even though you made no money and owe no taxes, your business still has to file a tax return. In addition, there will probably be loses your first year and your accountant will show you how to carry those loses forward into future years to lower your taxes when you do begin to make money.
9
Consider:
Use $1 CPM as a benchmark for a banner ad rate on your site. (Obviously lots of variables, industry you're in, whether you do Google AdSense or display banner ads, etc.) So for an ad you display, every 1,000 times that ad is displayed on a page, you get $1.
So to make $1,000, you need to have 1,000,000 ad views.
Let's say each page has two ads. ...
9
By law, do we need to create a company to receive this cash?
No, you don't have to form a distinct entity to do so. This is called running a "sole proprietorship":
http://en.wikipedia.org/wiki/Sole_proprietorship
http://sbinfocanada.about.com/cs/startup/a/formsbusiness.htm
That said, business owners form distinct business entities to protect ...
7
I read the Dropbox: The Inside Story Of Tech's Hottest Startup article. The reason they expect their revenue to double even if they don't get a single NEW user is because they expect more of the current 50 million users to become paying customers.
6
This isn't so much about short-term money as about generating long-term value.
Some startups will gain funding because they are disruptive, can gain a solid market position, have some competitive advantage and for other reasons not directly associated with short-term revenue generation.
These things are often a long-game, whereby investors know that with ...
5
It all depends on the content and traffic of your website. My wife and I run a site involving graphics for download and we see wild swings in ad revenue per day. To boil it all down to one metric, we've earned anywhere between $0.20 and $20 per 1,000 visitors (with $2-$4 being the norm). However when factoring in hosting costs our revenue is diminished.
I ...
5
Well I can tell you exactly what the deal is for THIS site!
You can only make ad revenue with tons of traffic. We hope to get that amount of traffic but it's not the goal. The goal is to create something of genuine value for as many people as possible, but the value is the goal, not the number of people.
(@fabien7474) By my calculations StackOverflow ...
5
First, hiring you solely on the basis of a percentage of revenue is not hiring you - it's becoming a partner. If you're questioning whether a 50/50 split is fair, than 66/33 couldn't possibly be fair.
Now, in terms of your current product, find out what the rate is for marketing something similar, and work out what you want to earn per hour. So if you want ...
5
I think what you are asking is if you should report to the IRS (file an income tax return) small income that you earn every so often. Am I reading your question correctly?
At the end of the tax year you will add up all your small revenue streams, and subtract any business expenses. If your net profit is over a certain dollar amount you must file a tax ...
4
Try to sell ads directly, if possible.
If you go with an ad network (e.g. google adwords), you get pennies to the dollar.
Instead, sell banner ads directly to the advertisers. I know at least one big blog that does this. They have an intern whose job it is to dig up 50 potential leads per week. Then, a sales-person calls the potential advertisers and tries ...
4
I find it comical that he is asking for 50% of revenue for an app you already wrote, bu is only willing to give you 1/3 for apps that are only concepts that you will have to write.
My advice would be to learn/try to do your own marketing and promotions. If/once you get tired of that then go ahead and team up with someone. 50% (or whatever split) of some ...
4
I'm from Flippa and would endorse most of the comments here. I'd expect it to sell for around the $2,000 mark but it would depend on a number of factors. This would include level of audience engagement (eg do they hit one page and leave or do they come back regularly for extended durations). The medical/health niche is furthermore quite broad - the specifics ...
4
Being in the US I highly recommend you speak to a CPA. There could be so many tax implications it's not funny. I guess you could convert the partnership to a corp and then both take shares in it. Writing checks I don't think will be an option. Declaring profit, taking revenue out to your own names, then doing whatever with that would again depend on your tax ...
4
I wouldn't be surprised by that. People are getting ridiculous valuations, it would be very hard to achieve that if you did have revenue. Once you have revenue, you can no longer use silly metrics to estimate your revenue, you actually just have revenue and it's probably somewhat underwhelming compared to the projections you can make up.
There are also a ...
4
It really depends on your product, your existing technology setup, your market and your business model.
IF your intending to sell a product for $50 on a CD, then your probably out of date I would recommend looking at changing your model. I have had several recent clients change their product/deliery models from this style to an online service model. In ...
3
I would definitely hire someone. I started out doing my own taxes using a program, but had to amend my filing due to a rules enacted by my state legislators that was retro-active.
Besides having to always file a Federal return, you may also have to deal with local and state issues. It gets even more difficult if you are operating as a "foreign" corporation.
...
3
Keep in mind you are not making any money right now so 50% of more money is almost always better than 100% of nothing (or hardly nothing).
My recommendation is to put all your expectations in writing before hand. You expect him to work XX amount of hours each week marketing. You expect him to spend YY amount of dollars marketing. His plan is this...etc. ...
3
If you mean 'place Google, Amazon, etc. ads on a regular website, and make a profit matching the annual salary of a software developer in the US', then the answer is no. Take a look at Stack Overflows experiences with ads, here is their latest article.
If you go for a 3-party business model like Mint, or of you go for a freemium model with ads for the ...
3
The best (and I would argue the only) way to know what it's worth is to put it on the market.
For example you can list it on Flippa.com. Put a reserve price if you don't want to sell under $n.
I believe it's the only way to get a real number.
By the way it seems to me (based on browsing flippa.com prices) the multiplictor number (market value / current ...
3
I'd agree that it's probably only worth $2,400 (24x multiple of your monthly revenue). But with that said, are you able to sell any products on the site? If you have 300 people hit the site can you can get a 1% conversion on a product and earn $10 commission you'd instantly 9x your revenue. Then you could sell it $21,900.
To get a premium price, instead ...
3
Lately I've been developing Android apps on a contract basis. I approach businesses (or they approach me) and I develop a promotional app for them. This app will be a free download on the market, but I get paid by the business for my work.
A typical promotional app could get you in the range of $1500 to $2000 obviously this all depends on the features and ...
3
As mentioned in this article Groupon has filed for an IPO and in its paperwork has disclosed some revenue figures. Their estimated revenue for 2010 is ~$870 million, but on that they made a loss of $413 million. In this article they talk a bit more about subscriber numbers etc.
If you want some light bed-time reading, then dive into Groupon's actual SEC ...
3
You should take a look at this recent community wiki entry: How Do I Define and Research a Market and Estimate Market Share.
Estimating your revenue and user acquisition rates comes at the tail-end of estimating potential market share. For that, Jarie puts it best when he says:
Defining your marketplace, doing research and estimating market share are ...
3
You can make up numbers based on total market size forever, if your google/apple/microsoft then your look at these numbers because your going to have a chance at a serious percentage of these in the first year ... Unless you have deep pockets or a "facebook" style viral product then you need a different approach.
A realistic method is to work out "playing ...
3
AFAIK Apple don't allow you to have "In App" purchases without using their system and giving them their cut. Doing so is a ToS violation and could get your app pulled.
As far as I can work out you can do a simple link to a web page from your app.
Even Amazon had to comply
...
3
A very popular site to sell existing websites is https://flippa.com/ if you look at their Just Sold section and sort by price you'll see websites which sold for over a million dollars. Your best bet is to find similar websites see what they sold for. If non exist find websites generating similar revenue, see what proof was given such as verified Analytics ...
3
I believe these payments would just be treated as capital contributions. It has the effect of increasing the basis you have in your ownership of the company. On the balance sheet, it counts as an asset, with offsetting shareholder equity. There is no tax effect to this sort of contribution.
See http://www.irs.gov/publications/p542/ar02.html and search ...
3
Are you assuming that VLC, SMPlayer were created with making profit in mind?
Because that may not be the case.
In case of VLC Wikipedia writes:
"The VideoLan project was originally started as an academic project in 1996 (....) it is now developed by contributors worldwide and is coordinated by the VideoLAN non-profit organization."
(see: ...
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